Canada averaged 146 active drilling rigs this week according to data from the Canadian Association of Energy Contractors. Of those rigs, 34% are drilling for natural gas, 54% are drilling for oil, 2% for other (helium, hydrogen, geothermal, or potash), and 10% are moving. Drilling activity by province is 70% in Alberta, 18% in Saskatchewan, 10% in BC, and 2% elsewhere. Precision Drilling holds the majority of the Canadian market share with 33%, Ensign Drilling with 15%, Savanna Drilling [Read more]
Headlines
U.S. drillers add oil and gas rigs for second week in a row
U.S. energy firms added oil and natural gas rigs for a second week in a row as oil prices recently rose to their highest since Oct. 2018, prompting some drillers to return to the well pad. The oil and gas rig count, an early indicator of future output, rose 4 to 479 in the week to July 9, its highest since April 2020, energy services firm Baker Hughes Co said in its closely followed report on Friday. That put the total rig count 221 rigs, or 85.7%, higher than this time last year. It was [Read more]
Atco to use organic waste to produce ‘renewable natural gas’
CALGARY - Atco Energy Solutions says it will build its first renewable natural gas facility in Alberta. The facility will be built north of Vegreville, Alta., and should be up and running by late 2022. It will capture methane emissions from manure and other organic waste to produce fuel. Atco says the facility will produce enough natural gas to heat 2,500 homes per year and reduce carbon emissions by 20,000 tonnes annually. Vegreville-based biofuels company Future Fuel Ltd. will partner [Read more]
Oil prices firm as U.S. inventories decline
Oil prices rose for a second day on Friday as data showed a draw in U.S. inventories but were heading for a weekly loss amid uncertainty over global supplies after an OPEC+ impasse. U.S. West Texas Intermediate futures were up 95 cents, or 1.29%, at $74.19. Brent crude oil futures were up 90 cents, or 1.21%, at $75.26 a barrel. Prices on both sides of the Atlantic were on track for a more than 2% weekly drop, dragged down by the collapse of output talks between the Organization of the [Read more]
Heavy crude discount narrows
Canadian heavy crude's discount to West Texas Intermediate (WTI) narrowed on Thursday. Western Canada Select (WCS) heavy blend crude for August delivery in Hardisty, Alberta, traded at $13 per barrel below the WTI benchmark, according to NE2 Canada Inc, narrower than Wednesday's settle of $13.30 a barrel under the benchmark. Rising refinery rates and tight Alberta oil stocks are narrowing the differential, market sources said. Light synthetic crude from the oil sands for August delivery [Read more]
Canada’s new net-zero advisory panel to explore ‘carbon budget’ as part of 2050 goal
OTTAWA - The co-chair of an expert panel designed to advise Canada on how to reach net-zero emissions says it is exploring the idea of creating budgets for greenhouse gas emissions. Dan Wicklum says the net-zero advisory body authored a report summarizing what other groups in Canada and beyond have said about ways to neutralize carbon-related emissions by 2050. The Liberal government recent passed legislation enshrining this target into law, meaning by that year, whatever greenhouse gas [Read more]
Japanese oil producer eyes Canada divestment as M&A picks up
Japanese state-backed oil producer Japan Petroleum Exploration Co (Japex) is seeking a buyer for its 75% stake in the Hangingstone oil sands facility in Canada, two sources with direct knowledge of the matter told Reuters. Several global oil majors have rushed to sell Canadian oil sands assets over the past four years over concerns ranging from high production costs and emissions to scarcity of capital. Japex unit Japan Canada Oil Sands Ltd (JACOS) is majority owner of Hangingstone, with [Read more]
Oil prices continue to fall as OPEC+ uncertainty weighs
Oil prices fell for a third day on Thursday amid uncertainty over supply after the collapse this week of talks among major producers which could potentially cause the current output agreement to be abandoned. U.S. West Texas Intermediate futures was down 91 cents, or 1.25%, at $71.38 a barrel. Brent crude oil futures was down 54 cents, or 0.74%, to $72.82 a barrel. Both contracts were at their lowest in about three weeks. However, the six-month spread is still in backwardation with the [Read more]
Line 3 and Line 5 Update- Misinformation and Court Challenges
Line 3 and Line 5 information just keeps coming. When it comes to Line 3, reports are plentiful but misleading. Last month, as Enbridge won a Minnesota court of appeals ruling that upheld the permit for the Line 3 replacement project, the 670,000-barrels-per-day capacity was described as including 400,000 BPD of excess (or additional) pipeline capacity. Excess capacity? Not so according to Marilyn Gladu, a professional engineer who worked for Dow Chemical for 21 years and a former [Read more]
Momentum in energy markets as the global economy reopens
As the markets try to figure out how solid the footing is for the world economy as we exit the pandemic, energy prices are seeing some positive sentiment throughout the world. With increasing demand and a slower recovery in production levels, many are calling for sustained higher oil and gas prices. Oil Supply and Demand OPEC+ supply management and the potential Iranian production re-entry are key themes in the market today. Current conversations by OPEC+ around increasing production [Read more]