BOE Report

New NEB figures show crude-by-rail exports plunging so far this year

CALGARY - New figures compiled by the National Energy Board show a sharp decline in the amount of crude exported by rail so far this year.Nearly 84,000 barrels a day moved south of the border on trains in the second quarter.But that's about 30 per cent less than the nearly 120,000 barrels a day that were exported by rail in the first quarter.It's an even sharper drop from the roughly 159,000 barrels a day in the last three months of 2014.The plunge in crude-by-rail exports comes amid a severe [Read more]

Imperial has hopes for long-dormant Mackenzie Gas project in Canada’s Arctic

CALGARY - Imperial Oil is hanging on to hope that its long-dormant plan to tap into natural gas fields in the Far North may eventually come to fruition.The lead partner in the Mackenzie Gas Project has written to the National Energy Board seeking a seven-year extension to a sunset clause attached to federal regulatory approval granted in 2011.The clause requires Imperial and its partners to break ground on the project by the end of this year. But that's not feasible in today's market [Read more]

Revenues could be down more than previous government predicted: Alberta premier

CALGARY - Alberta Premier Rachel Notley says continued oil-price volatility could be affecting the province's bottom line even more than the former Tory government predicted.The NDP premier isn't sharing much about what might be in the 2015-16 budget when it comes down in October.But she does says keeping on top of oil prices remains a priority.The price per barrel hovered around US$60 when Notley's New Democrats were elected in May, but has since fallen to below US$40 a barrel.The budget [Read more]

With crude dipping below U$40 a barrel, reserve writedowns likely in store

CALGARY - Another wave of ugly news is looming for oil producers already battered by weak oil prices.Every year, companies hire outside evaluators to tally up their reserves — a calculation of how much resource in the ground can be recovered technically and economically.With U.S. benchmark crude dipping below US$40 a barrel for the first time since early 2009, the economics are looking especially dicey these days. Oil that might have been viable to produce at stronger prices may not be [Read more]

BP restarts large US refiner of oil sands crude after unplanned shutdown

CALGARY - BP says it has restarted operations at a major unit of a U.S. refinery that processes oilsands crude from Alberta after a malfunction earlier this month.The forced shutdown of the 240,000-barrel-a-day crude distillation unit in Whiting, Ind., on Aug. 8 caused gasoline prices to spike across Western Canada.The closure also led to a wider discount on Canadian heavy crude, which dropped to more than US$20 below the North American benchmark price.BP says the Whiting restart is increasing [Read more]

Calgary man allegedly uses shell companies to defraud employer of millions

CALGARY - The co-founder of an Alberta oil and gas company has been accused of defrauding the firm of nearly $5 million.Police allege that between September 2007 and November 2011 the suspect created three shell companies that were set up to defraud his Calgary employer.They say the companies were used to create fictitious invoices for supplies and services that were not genuine transactions."The individual that was charged was in a position of authority in the company, so anything he did within [Read more]

Drop in commodities brings deeper economic pain for some provinces

CALGARY - Commodity prices are tanking and they're bringing Canadian markets down with them, but experts say some provinces will be feeling the pinch more than others."It'll feel like a recession depending on where you live in the country," said John Stephenson, chief executive of hedge fund Stephenson & Co. Capital Management.He said everything from oil to metals to lean hog prices are dropping as weaker growth globally weighs on demand."Virtually everything is down in price, and significantly [Read more]

National Energy Board hearings in to Trans Mountain pipeline expansion postponed

CALGARY - A National Energy Board panel has postponed hearings that were supposed to begin next week into the Trans Mountain expansion because a consultant who prepared evidence in favour of the project will soon work for the regulator.Kinder Morgan Canada, the company behind the project, filed evidence with the board in late 2013 that was prepared by Steven Kelly, a consultant with IHS Global Canada at the time. The report touted the project's economic benefits.In July, federal Natural [Read more]

Alberta premier won’t back away from royalty review, tax hike because of low oil

EDMONTON - Alberta Premier Rachel Notley says falling oil prices won't force her government to back away from a royalty review or a hike to corporate taxes.The benchmark price of a barrel of crude has fallen below US$40 a barrel for the first time since the end of the global economic crisis and oil prices have been falling solidly for eight consecutive weeks.Notley says Alberta still has the best tax regime in Canada and profitable companies can pay a bit more when times are tough.The Opposition [Read more]

Trans Mountain tells NEB pipeline expansion is ‘safe and viable option’

VANCOUVER - An expanded Trans Mountain pipeline would add $18.2 billion to Canada's gross domestic product over 20 years, benefit First Nations and reduce environmental harm, Kinder Morgan says.The energy giant filed its final written submissions to the National Energy Board on Thursday, arguing the $5.4-billion proposal is a safe and viable option to transport diluted bitumen from Alberta's oilsands to British Columbia's coast."The scrutiny and rigour this project has undergone, both inside and [Read more]