Canada averaged 110 active drilling rigs this week according to data from the Canadian Association of Energy Contractors. Of those rigs, 35% are drilling for natural gas, 49% are drilling for oil, 2% for other (helium, hydrogen, geothermal, or potash), and 14% are moving. Drilling activity by province is 63% in Alberta, 11% in BC, 23% in Saskatchewan, and 3% elsewhere. Precision Drilling holds the majority of the Canadian market share with 31%, Ensign Drilling with 18%, Savanna Drilling [Read more]
Headlines
U.S. drillers add oil and gas rigs for sixth week in seven
U.S. energy firms added oil and natural gas rigs for the sixth time in seven weeks as oil prices rose to their highest since 2018, although gas drillers have slowed down their activity. The oil and gas rig count, an early indicator of future output, rose five to 461 in the week to June 11, 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 up 182 rigs, or 65%, over this time last year. It was also [Read more]
Tourmaline continues North Montney consolidation with the acquisition of Black Swan Energy
CALGARY, AB - Tourmaline Oil Corp. (TSX: TOU) ("Tourmaline" or the "Company") is pleased to announce that it has entered into a definitive agreement to acquire privately owned Black Swan Energy Ltd. ("Black Swan") for a total consideration of approximately $1.1 billion Cdn, consisting of 26 million Tourmaline common shares and the assumption of net debt(1) up to a maximum of $350 million, including all transaction costs. The transaction is expected to close in the second half of July 2021, [Read more]
Calroc Industries Inc.: well diversified and positioned to head into the second half of 2021
Calroc Industries Inc. has been diligent with cost controls, right-sizing, and diversification through 2021. At Calroc’s most recent Safety Meeting, President Dan Echino stated to his team with his closing remarks: “2020 was a difficult year for not only Calroc, but our entire industry. I am very proud of this group and we must remain focused on cost savings and exceptional customer service. With what I have seen from everyone’s performance last year, I know 2021 will be a great year for Calroc [Read more]
Auditor scolds Alberta over mine cleanup fund, how province handles polluted sites
EDMONTON - Alberta's auditor general is criticizing the government for failing to fix problems pointed out six years ago in a program that's supposed to guarantee coal and oilsands mines clean up after themselves. Doug Wylie says there's so much confusion over who's responsible for the government's own contaminated sites that there's no stable funding to ensure that an abandoned coal mine in northern Alberta stays safe. "There is an impact beyond accounting and process issues," Wylie said [Read more]
IEA sees OPEC+ spare capacity gaining slightly in 2022
The International Energy Agency expects spare capacity in the OPEC+ alliance to rise by 180,000 barrels per day (bpd) next year to 50.55 million bpd, driven by hikes from Mideast Gulf producers. "Saudi Arabia and Kuwait are expected to continue to build up production in the shared Neutral Zone, the UAE raises capacity at the Upper Zakum field, among others, and Iraq further develops its giant southern fields," the IEA said in a monthly report on Friday. Other members in the alliance [Read more]
Waterous Energy Fund announces the amalgamation of Strathcona Resources Ltd. and Osum Oil Sands Corp. and the closing of a new C$1.0 billion covenant-based credit facility
CALGARY, AB - Waterous Energy Fund ("WEF") today announced the closing of the amalgamation of its two portfolio companies, Strathcona Resources Ltd. ("Strathcona") and Osum Oil Sands Corp. ("Osum"). The amalgamated entity will continue in business under the name Strathcona Resources Ltd. and will remain 100% owned by WEF, WEF co-investors and Strathcona employees. Strathcona is the product of nine separate transactions completed by WEF since 2017, including three take-private transactions and [Read more]
Oil rally has more room to run, Brent expected to hit $80/bbl – Goldman
U.S. investment bank Goldman Sachs expects Brent crude prices to reach $80 per barrel this summer, betting that a recent oil market rally will continue as vaccination rollouts boost global economic activity and demand for the commodity. Brent prices hit $72.93 per barrel this week, their highest level in over two years, fuelled by expectations of stronger demand. Brent futures were trading at $72.21 a barrel on Friday, while U.S. West Texas Intermediate (WTI) crude was around $70 a [Read more]
Alberta finance minister defends $1.3B loss on Keystone XL as ‘calculated decision’
EDMONTON - Alberta’s finance minister says the province's $1.3-billion investment of taxpayers' money in the now-defunct Keystone XL pipeline project was a prudent gamble given the potential payoff in profits and jobs. Finance Minister Travis Toews says it was a "calculated decision," given the pipeline would have provided $30 billion in royalties over two decades had it gone through. Energy Minister Sonya Savage says the decision meshed with a broader commitment to grow Alberta’s [Read more]
Embattled Keystone XL pipeline continues to divide experts — even post-mortem
CALGARY - Even after its death, the divisive Keystone XL pipeline continues to leave Canadian energy industry experts at odds. While some suggest TC Energy Corp.'s cancellation of the project won't impact global emissions, others says it's a significant step in the fight against climate change. Dennis McConaghy, a retired oilpatch executive, calls the company's termination of the pipeline a capitulation to the environmental movement. The former TransCanada executive says the death of [Read more]