A C$16.5 billion ($12.27 billion) carbon capture and storage (CCS) project proposed by Canada's major oil producers will only move forward if the federal government sets up a contract to lock in future carbon prices, the Pathways Alliance said on Wednesday. Pathways, a consortium of the six biggest oil sands companies, plans to build a CCS hub to store emissions from 14 projects in northern Alberta's oil sands by 2030. Ottawa has promised a 50% investment tax credit to support the project [Read more]
Oil companies cautious about drilling as energy transition looms
Government policies to fight climate change are discouraging oil companies from investing heavily in new production even as they turn in record profits - a dynamic that could spell tight supply and high prices as clean energy alternatives seek to fill the void. Crude oil prices have surged above $90 a barrel and some analysts predict they will nudge above $100 by year's end. But instead of spending big to boost output, companies are boosting dividends or buying back shares to reward [Read more]
Republican hopeful DeSantis attacks EVs, emission goals in energy plan
Republican presidential contender Ron DeSantis pledged on Wednesday to slow America's transition to electric vehicles, repeal regulations related to environmental, social and governance considerations and dramatically ramp up domestic fossil fuel production if he were elected. In a speech in Midland, Texas, a city in the heart of oil country, the Florida governor also said he would withdraw the U.S. from global agreements to reduce greenhouse gas emissions to fight climate change, while [Read more]
US natgas prices fall 4% on drop in LNG feedgas, milder weather forecasts
U.S. natural gas futures fell about 4% on Wednesday as the amount of gas flowing to the nation's liquefied natural gas (LNG) export plants declined with the shutdown of the Cove Point LNG export plant in Maryland and on forecasts for milder weather and less gas demand over the next two weeks than previously expected. Front-month gas futures for October delivery on the New York Mercantile Exchange were down 12.5 cents, or 4.4%, to $2.723 per million British thermal units (mmBtu) at 10:03 a.m. [Read more]
Chevron, unions again fail to reach deal to halt Australian LNG strikes
The latest round of talks between Chevron and unions at its two liquefied natural gas (LNG) facilities in Western Australia ended on Wednesday without a deal, a Chevron spokesperson said, leaving the fate of strikes at the major export facilities in the hands of a workplace tribunal set to meet on Friday. Chevron Australia said despite "meaningful negotiations" this week, unions continued to ask for terms well above industry standards. “The ongoing lack of agreement reinforces our view [Read more]
Goldman Sachs says OPEC can sustain Brent in $80-$105 range in 2024
Growing oil demand and extended supply cuts have pushed the market into a deficit and will allow OPEC to sustain Brent crude prices in a range between $80 and $105 per barrel next year, Goldman Sachs said in a note on Wednesday. The Wall Street investment bank also raised its year-ahead Brent forecast to $100 a barrel from $93 earlier, citing modestly sharper inventory draws. "The key reason is that significantly lower OPEC supply and higher demand more than offset significantly higher [Read more]
Oil falls ahead of Fed rate policy announcement
Oil prices retreated further from 10-month highs on Wednesday ahead of the U.S. Federal Reserve's interest rate decision, with investors uncertain when peak rates will be hit and how much of an impact it will have on energy demand. Prices fell despite a bigger-than-expected draw in U.S. oil stockpiles and weak U.S. shale output that indicated tight crude supply for the rest of 2023. Global benchmark Brent crude futures fell slightly over $1 to $93.33 a barrel, and were last down 80 cents, [Read more]
Saudi oil minister deflects blame for rising prices: Kemp
Saudi Arabia’s oil minister denied the kingdom’s recent production cuts have been intended to boost prices, in remarks at the World Petroleum Congress in Calgary on Sept. 18. “It’s not about . . . jacking up prices, it’s about making the decisions that are right when we have the data,” he said (“Saudi Arabia’s energy minister says oil cuts not about jacking up prices”, Financial Times, Sept. 18). Energy Minister Prince Abdulaziz bin Salman cited continued uncertainty about oil consumption [Read more]
Equinor ‘more optimistic’ of building Canada offshore oil project
The head of Canadian operations for oil producer Equinor said on Tuesday he is more optimistic the Norwegian company will proceed with its Bay du Nord offshore project, four months after delaying the project for up to three years due to soaring costs. "That's our sentiment now, we really want to make this happen," Tore Løseth, Equinor's Canada country head, said in an interview at the World Petroleum Congress in Calgary. "In many ways I feel more optimistic." Bay du Nord, far off the [Read more]
Canada’s Enbridge could add 200,000 bpd to Mainline oil pipeline capacity
Enbridge Inc could add 200,000 barrels per day (bpd) of capacity to its 3 million bpd Mainline system, which ships the bulk of Canada's crude exports to the United States, a company executive said on Tuesday. However, Enbridge would only look at proceeding with the expansion once the Canadian government-owned Trans Mountain expansion (TMX) project starts operating, said Marc Weil, a senior vice president in the company's Liquids Pipelines business. TMX, which will compete with the [Read more]