In a year dealing with a global pandemic and a historic oil price crash, Alberta’s budget was released last week with an $18.2 billion deficit, though offered prosperous times in the future. Getting out of the pandemic is first priority, as it has decimated the province. By controlling the virus and outbreaks, oil and gas activity can continue. The vaccine rollout and potential high demand for oil and gas products coming out of the pandemic play into the province’s hand. Finance Minister [Read more]
Texas deep freeze shows need for natural gas
As Texas begins its thaw from its historic winter storm, it has unearthed there is still a massive and growing need for natural gas services and products to keep people warm. Winter storms walloped the state, first hit by the snow, then blackouts, then loss of power, water, burst pipes, forcing the state to hunker down and find heat anywhere they could, some even as going as far as Mexico. Millions of Texans are still without power and heat while trying to deal with COVID-19, culminating [Read more]
Mergers and acquisitions are on the rise
There are a staggering amount of mergers and acquisitions happening in Western Canada’s oil and gas, as the fervent wheeling and dealing days are heating up the frigid winter. In what could be seen as short-term pain for long-term gain, depending on who you talk to, the recent Crescent Point, Spartan Delta Corp, and Arc Resources mergers, Ovintiv, and even Inter Pipeline, have sent shockwaves throughout the industry after a Wacky Wednesday. Is it the ability to drive down costs and [Read more]
Line 5 creating cross-border tensions
When U.S. President Joe Biden nixed Keystone XL, it was a seismic moment for both Canada and the U.S., not only because of the pipeline itself, but how would affairs be moving forward between the two countries, how would the political climate be affected, and what is to become of other projects, namely Enbridge Line 5? A great deal of attention has shifted to Line 5. Tensions are high, and many people are concerned about job loss, notably workers in Ontario, threatening nearly 5,000 jobs, [Read more]
The state of Western Canada’s pipeline projects
As Keystone XL has been shelved following President Joe Biden’s inauguration, that doesn’t mean other pipeline projects aren’t on the go, or that others won’t be completed. Some prominent Western Canada projects, Trans Mountain, Coastal GasLink, and Enbridge Line 3 are well underway. We give a rundown of them below with some updates on how the respective projects are coming along. Trans Mountain Originally built in 1953, the pipeline is still operating safely to this day. The expansion is [Read more]
Cenovus to lay off upwards of 2,000 employees
Over the next two months, Cenovus is planning to lay off upwards of 2,000 employees, with the first round of layoffs expected in early February. After the first round of layoffs, more cuts are to follow in a couple of phases in later February and March. The affected workers will receive termination notices by phone, with work-from-home mandates still in effect. This move comes after Cenovus finalized their deal to buy Husky Energy, a $3.8 billion deal in October, where it was announced [Read more]
Regina councilors voting to ban oil and gas advertising
Saskatchewan Premier Scott Moe has voiced concerns and displeasure over Regina councillors wanting to ban oil and gas companies from advertising in the city. The proposal would not allow for oil and gas companies to place their logos on public parks or buildings within the city. The motion was passed during an executive council meeting, although the proposal still needs approval from city council on Jan. 27 to come into effect. Daniel LeBlanc has cited sustainability as the reason why the [Read more]
How can Alberta make itself more attractive for oil and gas investment?
After enduring so many punches during 2020, from a depressed market and a global pandemic all but halting much of the world, Alberta’s bruised and battered oil and gas sector did not make the top 10 of North America’s most competitive oil patches, according to Fraser Institute’s Canada-US Energy Sector Competitiveness Survey 2020. Another tough pill to swallow for the province was the announcement of Norway’s Equinor moving staff from Calgary to St. John’s, and will no longer evaluate [Read more]
Shell and Pieridae rekindle well transfer attempt
Early in 2020, Shell initiated a well license transfer with the AER to transfer licenses of deep sour gas wells and pipeline licenses to Pieridae Energy, which was subsequently blocked by the AER, saying it went against the intent of environmental laws. Once again, this time early in 2021, Shell is trying to offload wells and pipeline licenses on to Pieridae. Terms of the sale would have seen Shell responsible for existing contamination, and Pieridae on the hook for future problems of the [Read more]
A look at Canada’s hydrogen strategy
With an eye towards the future, Canada’s Minister of Natural Resources, Seamus O’Regan recently announced the launch of the hydrogen strategy for Canada, a plan that aims to position Canada as a global hydrogen leader. The strategy is planned to create 350,000 jobs and help Canada reach net-zero emissions by 2050. O’Regan added that roughly $5 to $7 billion is needed to help aid the hydrogen industry. From the Federal Government, “we see Canada advancing a hydrogen economy as not just [Read more]