BOE Report

Priority No. 1 for incoming U.S. Congress: Keystone XL pipeline, Republicans say

WASHINGTON - A showdown over the Keystone XL pipeline is set for early in the new year, with the Canadian oil project having been anointed as the No. 1 priority of the new Republican-dominated Congress.A Keystone XL bill will be the first item in the Senate after the new Congress convenes on Jan. 6, the next leader of the chamber, Republican Mitch McConnell, announced Tuesday.McConnell also said he'll allow amendments to the bill. That means it could become a venue for horse-trading, as [Read more]

Quebec premier says not interested in exploiting shale gas deposits

MONTREAL - Premier Philippe Couillard has ruled out exploiting Quebec's shale gas reserves — at least for now.Quebecers are largely against hydraulic fracturing and exploiting the natural resource in today's market is not economically viable, he said Tuesday.Couillard made the comments shortly after Quebec's environmental review board concluded the ecological and social risks associated with hydraulic fracturing, or "fracking," outweigh the financial benefits.Fracking is a process whereby a [Read more]

Hibernia estimated to have more than 1.6 billion barrels of oil, regulator says

ST. JOHN'S, N.L. - The federal-provincial regulator for Newfoundland and Labrador's offshore oil industry says there is more oil in the Hibernia offshore site than previously estimated.The Canada-Newfoundland and Labrador Offshore Petroleum Board says Hibernia is now estimated to have 1.644 billion barrels of oil.That's up from its previous 2010 estimate of 1.395 billion barrels of oil.Hibernia, which began producing oil in November 1997, is Newfoundland's oldest offshore site.It is located [Read more]

Spanish company Repsol to purchase Talisman Energy

CALGARY - The CEO of Talisman Energy Inc. (TSX:TLM) says a multibillion-dollar takeover by Spanish energy giant Repsol is the best case scenario for shareholders in a gloomy oil price environment. The total purchase price is US$13 billion — US$8.3 billion for Talisman stock plus the assumption of its debt. The Repsol deal is a "terrific outcome" for a company facing a litany of challenges as crude prices plummet, from its large debt load to its sizable spending commitments in the U.K. [Read more]

Alberta imposes cost saving measures in face of falling energy revenues

EDMONTON - Alberta is imposing some cost-saving measures to help deal with sharply falling resource revenues.Premier Jim Prentice announced Monday that government hiring will be restricted to critical or frontline positions.There will also be spending restrictions for goods and services and on discretionary items such as travel and training."We do not know how long this price trough is going to continue, but it may go far longer than has been expected," Prentice said Monday as the price of a [Read more]

Not dead yet: Fight continues over EU effort to label oilsands as dirty oil

OTTAWA - Like a movie monster from the black bog, a European Union directive that would stigmatize "dirty" imports of Canadian bitumen refuses to die.A vote Tuesday in the European Parliament could reject a compromise draft bill and revive tough fuel quality directive labelling that would target unconventional crude, specifically Alberta's oilsands.The vote of the full plenary was prompted earlier this month when the European Parliament's environment committee flatly rejected a deal worked out [Read more]

Shale gas not worth the risk, Quebec environmental agency says

MONTREAL - Quebec's environmental review board has concluded that exploiting the province's shale gas deposits is not worth the risk.The agency's highly anticipated report — released Monday — stated there are too many potential negative consequences to the environment and to society from extracting natural gas from shale rock along the St. Lawrence River.The report estimated that Quebec could receive between $71 million and $475 million a year, over 25 years, in royalties from shale gas [Read more]

Oil has fallen by nearly half, to recession levels, as US economy improves. Why, what to know.

NEW YORK - The price of oil has fallen by nearly half in just six months, a surprising and steep plunge that has consumers cheering, producers howling and economists wringing their hands over whether this is a good or bad thing.The price of a barrel of oil is just under $56, down from a summer high of $107, and lower than at any time since the U.S. was still in recession in the spring of 2009.So what's going on? A global imbalance of supply and demand that is rippling across the world economy, [Read more]

OPEC Chief Urges Oil Investment Despite Low Prices

The secretary-general of OPEC on Sunday urged Gulf Arab nations to keep investing in oilfield development despite the plunge in crude prices and gave no indication the cartel was prepared to shift its strategy to halt the slide. Oil prices have shed nearly half their value since late June, including a 4 percent tumble Friday that left benchmark U.S. oil prices at $57.81 a barrel, their lowest level since May of 2009, when the U.S. was still in recession. Speaking at a forum in the Gulf [Read more]

Keystone, Mexico’s energy moves, on the agenda during continental talks

OTTAWA - The falling price of oil and what to do about it, the Keystone XL pipeline, and Mexico's major oil and gas shake-up will be on the table as North American energy ministers meet Monday.Natural Resources Minister Greg Rickford is set to meet with his counterparts Ernest Moniz and Pedro Joaquin Coldwell from the U.S. and Mexico respectively in Washington, D.C.The rapidly falling price of gas, exacerbated by the Organization of Petroleum Exporting Countries' (OPEC) decision last month not [Read more]