WINNIPEG, Manitoba (Reuters) - The Canadian government’s optimism that outside investors would be interested in taking over a Kinder Morgan Canada oil pipeline project if the company pulls out might be misplaced, said energy industry sources and analysts. Finance Minister Bill Morneau said on Wednesday that Canada was prepared to cover some losses the firm might suffer if the proposed C$7.4 billion ($5.8 billion) expansion of its Trans Mountain line was delayed and predicted “plenty of [Read more]
North American pipeline operators restructure after tax change
(Reuters) - Pipeline operators Enbridge Inc (ENB.TO), Williams Cos (WMB.N) and Cheniere Energy Inc (LNG.A) said on Thursday they would restructure after a U.S. rule change removed a key tax benefit for publicly traded partnerships controlled by those companies. Williams said it would buy all common units of its master limited partnership (MLP) Williams Partners (WPZ.N) in a deal valued at $10.5 billion. Enbridge said it would buy its independent units including Spectra Energy Partners [Read more]
Rising oil prices herald next phase in cycle: Kemp
LONDON, May 17 (Reuters) - Oil prices are now in the top half of the cycle, with benchmark Brent on Thursday trading above $80 per barrel for the first time since November 2014. In real terms, prices averaged $75 per barrel over the course of the last full cycle, which lasted from December 1998 to January 2016. The recent rise in prices sends a strong signal about the need for more production and slower growth in oil consumption. In the next few months, the narrative will increasingly [Read more]
Canada gas pipeline build to start in 2019, pending LNG plant FID
VANCOUVER (Reuters) - Construction on TransCanada Corp’s (TRP.TO) C$4.8 billion ($3.8 billion) Coastal GasLink pipeline will start in early 2019, pending a positive final investment decision on the linked LNG Canada project, the head of the pipeline project said on Wednesday. The comments followed a commitment from the chief executive of LNG Canada on Tuesday that the C$40 billion liquefied natural gas export terminal would be under construction in 2018. A final investment decision, or FID, [Read more]
U.S. crude stocks fall, exports hit a record high: EIA
(Reuters) - U.S. crude oil stockpiles fell last week as exports hit a record high and refinery ramped up output, while gasoline inventories dropped more than expected ahead of the summer driving season, the Energy Information Administration said on Wednesday. Crude inventories fell 1.4 million barrels in the week to May 11, compared with analysts’ expectations for a decrease of 763,000 barrels. Net U.S. crude imports fell 411,000 barrels per day as exports rose to a record 2.6 million bpd, [Read more]
OPEC sees oil rally towards $80 as short-term spike, not supply-driven
LONDON/DUBAI (Reuters) - OPEC sees oil’s rally towards $80 a barrel as a short-term spike driven by geopolitics rather than any supply shortage, four OPEC delegates said, a sign the group is not rushing yet to rethink its supply-cutting agreement. The view of top exporter Saudi Arabia is that any brief, speculator-driven jump in oil prices is not sufficient grounds for producers to boost output, an OPEC source familiar with the kingdom’s thinking said. For such a decision to occur, the [Read more]
For Big Oil, reserve size matters less than ever
A decade ago, the news that the world's top oil and gas companies had less than 12 years of production left in their reserves might have caused a panicked sell-off in their shares. But as consumers try to move away from fossil fuels to cleaner and cheaper energy sources, investors and executives say reserve size is no longer the gold standard for measuring the value and health of a company. The cost of developing existing reserves and the amount of carbon those reserves produce has now [Read more]
Canadian govt to brief media on oil pipeline aid, no decision yet
Canadian Finance Minister BillMorneau will brief reporters on Wednesday about talks withKinder Morgan Canada on possible aid for an oilpipeline project but will not be announcing a final decision, aspokesman said on Tuesday.Ottawa says it is prepared to offer financial support toensure the company proceeds with a planned expansion of itsTrans Mountain line from oil sands projects in the province ofAlberta to British Columbia on the Pacific coast. Kinder Morgan halted work last month, citing [Read more]
LNG Canada committed to starting construction on project in 2018
The chief executive of the LNG Canada project on British Columbia's northern coast said on Tuesday that the company was committed to starting construction on the C$40 billion liquefied natural gas export project this year. An investment decision on the terminal was delayed in 2016,due to sagging oil prices that hit cash flows, along with an unfavorable supply-demand outlook, but remains on track for 2018, Andy Calitz said at an LNG conference on Tuesday. "It didn't make sense in July [Read more]
Rising oil prices boost U.S. economy: Kemp
LONDON, May 15 (Reuters) - U.S. net petroleum imports have fallen to the lowest level in more than half a century as a result of the shale revolution, which is profoundly changing the impact higher oil prices have on the economy. Since the 1860s, the United States has been the world’s largest producer and consumer of oil, which means it has a complicated relationship with oil prices. Rising oil prices benefit some businesses and workers at the expense of others, and the same has been true [Read more]