PEACE RIVER, Alta. - The mayor and council of a northwestern Alberta town are reacting to Royal Dutch Shell's announcement that it is scrapping its Carmon Creek oilsands project.The project is near the town of Peace River.The council said in a statement posted on the town website that it has caused great concern as Shell helped fund several community projects.Mayor Tom Tarpey says his first thought was for those working on the project.The town says the cancellation will not affect upgrades to [Read more]
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Devon Energy cuts 200 jobs in Alberta oil patch on lower capital spending
CALGARY - Devon Energy says it has cut 15 per cent of its Canadian workforce as the company responds to lower capital spending plans.Oklahoma-based Devon said the staff reductions, completed Wednesday, mean about 200 employees have been let go in all areas of the company's Canadian operations, including its Calgary offices and northern Alberta field operations.Devon spokeswoman Nadine Barber said the company has significantly reduced capital spending in Canada after completing some major [Read more]
Stop Blaming OPEC For Low Prices
We are a little more than a month away from OPEC's next meeting, which will be held in Vienna on December 4, 2015. OPEC altered the course of the oil markets last year when it decided to cast aside its traditional role of maintaining balance through production cuts. Instead it pursued a strategy of fighting for market share, contributing to an immediate rout in oil prices. WTI and Brent then went on to dive below $50 in the weeks following OPEC's decision. OPEC is widely expected to [Read more]
Balancing budgets by squeezing blood from stone
Alberta made history yesterday for all the wrong reasons, with an announced budget deficit of $6.1 billion. Trends have been pointing towards this for some time and this latest deficit in part has its roots in the low-tax, high-spending policies of the Stelmach and Redford governments. This view echoes a Fraser Institute report that blames rampant spending growth rather than low oil prices for Alberta's current fiscal woes. That report points out that the province has run seven fiscal deficits [Read more]
Canadian oil industry to lose more than $2 billion in 2015
OTTAWA, Oct. 28, 2015 /CNW/ - The profitability of Canada's oil extraction industry is being challenged by the sharp and prolonged weakness in prices. The industry is expected to post a pre-tax loss of $2.1 billion this year, compared to a profit of close to $6 billion in 2014, according to The Conference Board of Canada's latest Canadian Industrial Outlook: Canada's Oil Extraction Industry. "While Canadian oil companies have acted swiftly, delaying capital investments, cutting expenses, and [Read more]
MEG Energy significantly reduces overall cost structure, enabling positive cash flow at low commodity prices
CALGARY, AB--(Marketwired - October 28, 2015) - MEG Energy Corp. (TSX: MEG) today reported third quarter 2015 operating and financial results. Highlights include:Net operating costs of $9.10 per barrel, supported by record-low non-energy operating costs of $5.98 per barrel in the third quarter and with annual guidance reduced to a targeted $6.90 to $7.10 non-energy operating cost per barrel;Record-high quarterly production volumes of 82,768 barrels per day (bpd);Cash flow from operations of $24 [Read more]
Premier Notley, cabinet fan out to begin selling controversial, landmark budget
EDMONTON - Alberta Premier Rachel Notley is shutting down suggestions her spend-heavy budget may ultimately trigger a sales tax to pay for it all.Notley told the house during question period Wednesday that no sales tax or harmonized tax will be created on her watch."That budget nor any other budget in the term of this government will not and does not include a PST," said Notley.The budget presented by Finance Minister Joe Ceci uses low interest rates and a downturn in the economy to ramp up [Read more]
Larry Summers’ influence on Canadian public policy and what it could mean for the petroleum industry
For many Canadians, a desire for change influenced their final voting decision in the federal election. Through focus groups and polls, the Liberals realized before the campaign even started that capturing the ‘change’ vote was crucial for winning seats. In recognizing this, credit to the Liberals for correctly reading the mood and accounting for it in their strategic campaign planning. With their majority win last week, it is now evident that what the Liberals did to communicate to Canadians [Read more]
Ceci delivers Alberta budget, reveals largest ever deficit at $6.1 billion
Tuesday afternoon, Alberta Finance Minister Joe Ceci, announced the 2015/2016 Provincial budget. Ceci announced a deficit for 2015/16 of $6.1 billion after a collapse in the price of oil hit Provincial coffers especially hard. “Overall this budget lays out a responsible economic plan that will serve as a shock absorber for our short term challenges and grow the economy over the long term,” Finance Minister Joe Ceci said. The NDP budget comes with a $26.8 billion deficit over the next three [Read more]
Shell to Halt Carmon Creek in Situ Project
THE HAGUE, The Netherlands, October 27, 2015 /PRNewswire/ -- Royal Dutch Shell plc ("Shell") (NYSE:RDS.A) (NYSE: RDS.B) today announces that the company will not continue construction of the 80,000 barrel per day Carmon Creek thermal in situ project located in Alberta, Canada. Shell originally sanctioned the project in October 2013 and announced in March 2015 that the project would be re-phased to take advantage of the market downturn to optimise design and retender certain contracts. After [Read more]