The discount on Canadian heavy crude versus the West Texas Intermediate (WTI) benchmark tightened on Thursday. Western Canada Select (WCS) heavy blend crude for July delivery in Hardisty, Alberta settled at $19.30 a barrel below WTI, according to NE2 Group, narrowing from the previous day's settlement of $19.60 a barrel under the benchmark. The discount Canadian heavy barrels remains close to recent lows around $20 a barrel under WTI, last seen in early 2020. WCS prices are being weakened [Read more]
Headlines
NuVista receives TSX approval for normal course issuer bid and announces credit facility renewal with sustainability linked performance features
CALGARY, Alberta - NuVista Energy Ltd. (TSX:NVA, "NVA" or the "Corporation") announces that the Toronto Stock Exchange (the "TSX") has approved the commencement of a normal course issuer bid (the “NCIB”) and the renewal and extension of the Corporation’s $440 million credit facility; which has been amended to include the incorporation of sustainability linked performance targets and hence converted into a sustainability linked loan (the “SLL Credit Facility”). Normal Course Issuer [Read more]
Freeport LNG fire cuts key source of U.S. gas supply to Europe, Asia
LONDON, June 9 (Reuters - An at least three-week shutdown at Freeport LNG, operator of one of the largest U.S. export plants producing liquefied natural gas (LNG), is expected to delay cargoes to Europe, further stressing the continent's drive to phase out Russian gas. The outage at the plant, which provides around 20% of U.S. LNG processing capacity, began with an explosion at its Texas Gulf Coast facility on Wednesday. It has triggered alarm bells among players in market already struggling [Read more]
Putin says Russia will not mothball oil wells despite West’s import ban
Russian President Vladimir Putin said on Thursday that Russian companies will not block off their oil wells despite the West's efforts to lessen its dependence on energy supplies from Moscow. The United States introduced its embargo on Russian imports in March just days after Moscow sent its troops into Ukraine, while the European Union agreed last month in principle to gradually cut 90% of its oil imports from Russia by the end of this year. Putin said the West will not be able to [Read more]
U.S. natgas futures drop 7% to 3-week low on Freeport LNG shutdown
U.S. natural gas futures dropped about 7% to a near three-week low on Thursday on expectations the fire and explosion that shut the Freeport liquefied natural gas (LNG) export plant in Texas on Wednesday will free up gas to help refill low U.S. stockpiles. Freeport LNG said its export plant in Texas will remain shut for at least three weeks following the explosion, raising the risk of global gas shortages especially in Europe. But shortages of LNG around the world means more gas will [Read more]
Oil down slightly, but seeing robust U.S. demand and China optimism
Oil prices were down slightly on Thursday, although robust demand in the world's top consumer United States, while demand is expected to rebound in China as COVID-19 curbs across major cities are relaxed. U.S. West Texas Intermediate crude for July was at $121.12 a barrel, down $1.35, or 1.10%. Brent crude futures for August declined 82 cents, or 0.66%, to $123.05 a barrel. Both benchmarks closed Wednesday at their highest since March 8, matching levels seen in 2008. The United States [Read more]
Pipelines unclogged, but Canadian crude now faces U.S. Gulf Coast glut
After long being deeply discounted for years because of a lack of pipelines, Canadian heavy crude is finally trading like a "North American" grade, moving in tandem with U.S. sour crudes sold on the Gulf Coast after Enbridge Inc expanded its Line 3 pipeline late last year. Unfortunately for Canadian producers, the Gulf is awash in sour crude thanks to Washington's largest-ever release from the Strategic Petroleum Reserve (SPR) that will amount to 180 million barrels over a six-month period, [Read more]
Well of the Week – The never-ending story?
After the Nordegg the Petro Ninja – Enlighten Geoscience Well of the Week ran into a bit of ‘writer’s block’ on the upwards sojourn through the plays of the Peace River Arch. The next formation in line is, of course, the Cadomin. And an excellent example of an Arch Cadomin producer is 200/A-014-A 093-P-08/00. It is (you guessed it) a Deep Basin well. And what original thoughts are left to express about yet another prolific Deep Basin well? Proclaiming once again the wonders of the Deep Basin [Read more]
Taxes potentially uncollected: Saskatchewan years behind on oil audits
REGINA - The Saskatchewan Ministry of Energy and Resources is years behind on auditing oil, potash and uranium companies, potentially leaving millions of dollars in royalties and taxes uncollected, says the provincial auditor. As of March 2021, there were 101 audits filed before 2020 that remained outstanding, Tara Clemett said in her most recent report this week. "Unless we go through these 101 audits, we won't know what's owed to us, or we owe them," she said in an interview. "It's [Read more]
Cheniere and Equinor sign long-term LNG sale and purchase agreement
HOUSTON - Cheniere Energy, Inc. (“Cheniere” or the “Company”) (NYSE American: LNG) announced today that its subsidiary, Cheniere Marketing, LLC (“Cheniere Marketing”), has entered into a liquefied natural gas (“LNG”) sale and purchase agreement (“SPA”) with Equinor ASA (“Equinor”). Under the SPA, Equinor has agreed to purchase approximately 1.75 million tonnes per annum (“mtpa”) of LNG from Cheniere Marketing on a free-on-board basis for a term of approximately 15 years. The deliveries under [Read more]