Canadian heavy crude's discount narrowed versus West Texas Intermediate (WTI) on Friday as curtailed production levels eased price pressures from reduced oil demand. Western Canada Select (WCS) heavy blend crude for August delivery in Hardisty, Alberta, traded at $7.95 per barrel below WTI, according to NE2 Canada Inc, narrower than Thursday's settle of $8.50 under. The market is balanced, with curtailed production offsetting reduced refinery demand, a Calgary industry source said. Also [Read more]
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Gear Energy Ltd. announces completion of borrowing base redetermination
CALGARY, AB - Gear Energy Ltd. ("Gear") (TSX: GXE) has completed its annual borrowing base redetermination and the syndicated credit facilities have been confirmed at $75 million with a maturity date of May 28, 2021. In addition, there are three repayment dates and corresponding reductions of the borrowing base scheduled for September 30, 2020, December 31, 2020, and March 31, 2021 of $5 million each. Adjustments have also been made to the interest rate pricing grid. The next borrowing base [Read more]
Canada weekly rig count up 8 to 26
Canada’s fleet of active drilling rigs jumped from 18 to 26 rigs since last week, according to data from Baker Hughes. Total drilling count was 26 at July 10. 6 rigs were drilling for oil; 20 for natural gas. The drilling activity in Alberta rose from 9 to 16 since last week. Saskatchewan’s drilling remained at 2 rigs. View a full breakdown of Western Canada’s rig activity. [Read more]
U.S. oil & gas rig count falls to record low for 10th week
U.S. energy firms cut the number of oil and natural gas rigs operating to a record low for a 10th week in a row but the rate of decline has slowed as higher oil prices prompt some producers to start drilling again. The U.S. oil and gas rig count, an early indicator of future output, fell by five to an all-time low of 258 in the week to July 10, according to data on Friday from energy services firm Baker Hughes Co going back to 1940. That was 700 rigs, or 73%, below this time last [Read more]
Oil rises, heads for weekly decline as virus cases hit record
Oil prices rose on Friday, working to counter steep losses from the previous session, and were headed for weekly declines on worries that renewed lockdowns following a surge in coronavirus cases in the United States and elsewhere would suppress fuel demand. U.S. oil rose 33 cents, or 0.8%, at $39.92 a barrel after a drop of 3% in the previous session. Brent crude was up by 25 cents, or 0.6%, at $42.58 a barrel after falling more than 2% on Thursday. Brent looks set for a weekly [Read more]
Tamarack Valley Energy announces strategic asset acquisition in West Central, Alberta & updated 2020 pro forma guidance
CALGARY, AB - Tamarack Valley Energy ("Tamarack" or the "Company") (TSX: TVE) is pleased to announce it has entered into a purchase agreement to acquire assets located in West Central, Alberta (the "Assets"). The Assets include approximately 2,500 boe/d (52% oil and natural gas liquids, "NGLs") of low-decline production supported by a high-quality, multi-zone light oil and liquids rich gas drilling inventory and approximately 105,000 net acres of land, acquired for total cash consideration of [Read more]
Heavy discount widens as producers ease production cuts
Canadian heavy crude's discount widened versus West Texas Intermediate (WTI) on Thursday as producers gradually restore some shut-in production. Western Canada Select (WCS) heavy blend crude for August delivery in Hardisty, Alberta, traded at $8.50 per barrel below WTI, according to NE2 Canada Inc, wider than Wednesday's settle of $7.90 under. Reduced production levels largely remain in place after spring curtailments, keeping differentials relatively tight, a Western Canadian industry [Read more]
Oil falls as coronavirus fears offset gasoline recovery signs
Oil prices drifted lower on Thursday as concerns about renewed COVID-19 lockdowns in the United States outweighed signs of a recovery in U.S. gasoline demand. U.S. West Texas Intermediate (WTI) crude futures fell $1.30, or 3.19%, to $39.56 a barrel, after rising 0.7% on Wednesday. Brent crude futures slipped $1.11, or 2.61%, to $42.16, after gaining 0.5% on Wednesday. "The market's struggling to get strong conviction to the upside at the current point in time," said Lachlan Shaw, head [Read more]
GLJ’s July Pricing – Energy oversupply in a pandemic roiled world
As we continue to observe and experience the effects of the current pandemic, the energy industry, like the rest of the world, has begun what appears to be a slow recovery. In contrast to the governments that continue to spend to keep their economies afloat, energy producers are continually forced to cut spending to survive these downturns. With these cutbacks come production declines and shut-ins which are anticipated to slowly alleviate the global oversupply of both oil and natural gas; [Read more]
Column: Municipal governments are making economy worse, not better
Alberta’s economy won’t start to fire on all cylinders unless municipal councillors are willing to start playing ball and cut taxes. A key pillar of the province’s economic recovery plan is the reduction of the business tax to eight per cent. Premier Jason Kenney has also made it clear that raising taxes right now would be like shooting a hole in a rowboat then deciding to cross the Pacific. “I cannot imagine a dumber thing to do in the midst of a time of economic fragility, an oil price [Read more]