BOE Report

Low oil prices unlikely to hurt railroads much

OMAHA, Neb. — The stunning collapse in oil prices over the past several months won’t derail the railroads’ profit engine even if it does slow the tremendous growth in crude shipments seen in recent years. Carloads of crude oil spiked well over 4000 percent between 2008 and last year — from 9,500 carloads to 435,560 — as production boomed and the cost for a barrel of oil soared into the triple digits. Those prices have tumbled severely, to just above $50 per barrel Friday, and that has [Read more]

Venezuela confirms oil-rich economy struggling to emerge from deep recession

CARACAS, Venezuela - Venezuela's socialist government has confirmed that the economy fell into a deep recession this year but blamed the slump on opponents trying to sabotage activity in the oil-rich nation.The central bank said gross domestic product contracted more than 4.8 per cent on an annual basis in the first two quarters of the year and 2.3 per cent in the July-September period. Inflation reached 64 per cent in November.The report was no surprise to economists, who blame the government's [Read more]

Dramatic plunge in crude prices named top business story of the year

CALGARY - From Alberta oilfields to Bay Street boardrooms to the gas station on the corner, the precipitous drop in crude prices is expected to have far-reaching impacts across the country heading into 2015, making it The Canadian Press Business News Story of the Year.The abrupt turnaround in oil markets was chosen by half of the 50 editors and news directors across the country who participated in the annual survey.In explaining their pick, many respondents noted the story's ripple effects [Read more]

Saskatchewan oil rig worker fined after co-worker injured on the job

STOUGHTON, Sask. - An oil rig worker has been fined $2,030 after causing a coworker to be seriously hurt near Stoughton, Sask.A worker was seriously injured on Jan. 12, 2013, when he was pinned between pieces of pipe being put onto a loader.Donovan Belisle has pleaded guilty to violating Occupational Health and Safety rules, specifically operating a vehicle at a place of work, not having a clear view of where he was driving and proceeding before he knew it was safe.He was fined $1,450 with a [Read more]

Saudis running $39 billion deficit due to low oil prices

Saudi Arabia's Cabinet on Thursday endorsed a 2015 budget that projects a slight increase in spending and a significant drop in revenues due to sliding oil prices, resulting in a nearly $39 billion deficit. In a sign of mounting financial pressure, the Finance Ministry said the government would try to cut back on salaries, wages and allowances, which "contribute to about 50 percent of total budgeted expenditures." That could stir resentment among the kingdom's youth, who make up a majority of [Read more]

Financial shocker of the year: Oil at $60

NEW YORK (AP) — For the first half of 2014 the oil market looked just as it had the year before — and the 2 years before that. Oil was over $100 and drivers in the U.S. were paying around $3.50 for gasoline. Economies around the world seemed to have adjusted to higher priced oil and oil companies were using high profits and debt from willing lenders to scour the world for new reserves. There was no real hope or expectation that U.S. drivers would see a price at the pump that started with a [Read more]

Natural gas price diving when it usually rises, on mild weather, high supplies

NEW YORK - Natural gas, the nation's most prevalent heating fuel, is getting cheaper just as winter is arriving because of mild temperatures and plentiful supplies.The price of natural gas has dropped 29 per cent in a month, to $3.17 per 1,000 cubic feet on Tuesday from nearly $4.50 in late November. That's a steep drop even for a fuel notorious for volatile price swings.The lower prices are expected to linger and could reduce electricity prices and heating bills in the coming months. Natural [Read more]

Harper and Prentice talk about energy sector during “challenging times”

CALGARY - Stephen Harper held a private meeting Sunday with Alberta Premier Jim Prentice in Calgary.Only a few broad details about the session were disclosed in a short news release from the Prime Minister's Office.It stated the two leaders focused on "the provincial, federal and global economies and on working together to keep Canada's energy sector strong through challenging times."The release said they also agreed that "all levels of government must continue to take steps to reduce greenhouse [Read more]

Saudi petroleum minister says there is no conspiracy behind drop in oil prices

ABU DHABI, United Arab Emirates - Saudi Arabia's oil chief says that allegations the kingdom conspired to bring oil prices down to harm its neighbours are false.Petroleum Minister Ali Naimi said at an oil summit in the United Arab Emirates on Sunday that "the best thing for everybody is to let the most efficient produce."His remarks were likely meant to alleviate concerns by some of the oil giant's neighbours that the kingdom is forcing lower oil prices to damage their economies.An OPEC meeting [Read more]

Alberta extends climate change rules, including $15 tonne carbon levy, to June

EDMONTON - Alberta has extended its climate-change regulations, including the carbon levy on large emitters, for another six months.The regulations had been set to expire at the end of the year but will now be kept in force through June 2015.Premier Jim Prentice had promised the changes by the end of the year, but said Friday that more time is needed to analyze options on a revised climate-change framework.Alberta currently has a $15 per tonne levy on carbon for large emitters.The province is [Read more]