Canada is pushing on several diplomatic fronts against the U.S. state of Michigan's efforts to close a cross-border oil pipeline, the second such dispute since Joe Biden became U.S. president in January, complicating the governments' efforts to work together to lower carbon emissions. The conflict over the aging but key pipeline highlights the disruptions caused by a global shift away from fossil fuels. Both governments are working to accelerate the energy transition, but their oil industries [Read more]
Headlines
Oil inches lower on concerns over COVID-19 surge in India, Japan
Oil prices eased slightly on Monday on concerns that a resurgence of coronavirus infections in India and Japan, the world's third and fourth-largest oil importers, would cut fuel demand in Asia. U.S. West Texas Intermediate (WTI) crude futures was down 86 cents, or 1.38%, at $61.25 a barrel. Brent crude futures fell 87 cents, or 1.32%, to $65.10 a barrel following a rise on Friday. Both benchmark crudes fell about 1% last week. "Market sentiment was dented on worries that surging [Read more]
Replacing polyethylene lining system with a spray-applied seamless system proven to minimize tanks leaks
Our team at Western Engineered Containment (WEC) worked closely with one of our clients to solve a problem that they were facing - they discovered many leaks on their above-ground lined tanks. While the current lining method involves the fabrication of polyethylene sheet liners into the cylindrical shape of the tank, these methods weren’t proven successful for our clients. As a result of the current lining method, ineffective seams at the junction of the wall and the circular base lead to the [Read more]
Shippers push for CP Railway to win bidding war for Kansas City Southern
North America's freight rail customers, from grain shippers to logistics companies, are pushing for Canadian Pacific Railway Ltd to win a bidding war for Kansas City Southern over rival Canadian National Railway, eyeing stronger competition and swifter service. A takeout of KCS, would be the first major North American railroad combination in more than 20 years and create the first network to include the United States, Canada and Mexico. CN, Canada's biggest railroad, made an unsolicited [Read more]
Canada’s weekly rig count at 55
Canada averaged 55 active drilling rigs this week according to data from the Canadian Association of Oilwell Drilling Contractors. Of those rigs, 47% are drilling for natural gas, 38% are drilling for oil, 2% for other (helium, hydrogen, geothermal, or potash), and 13% are moving. Drilling activity by province is 73% in Alberta and 24% in BC. Precision Drilling holds the majority of the Canadian market share with 38%, Ensign Drilling with 18%, Nabors Drilling with 15%, Horizon Drilling [Read more]
U.S. oil rig count falls for first week since March
U.S. energy firms cut the number of oil rigs operating for the first time since March even though higher oil prices in recent months have prompted some drillers to return to the wellpad. U.S. oil rigs fell one to 343 in the week to April 23, while gas rigs remained unchanged at 94, according to data on Friday from energy services firm Baker Hughes Co. The U.S. oil and gas rig count, an early indicator of future output, fell by one to 438 this week. Before this week, drillers added rigs for [Read more]
Oil steadies on hopes for demand recovery, India’s virus surge caps gains
Oil prices climbed on Friday, buoyed by hopes demand will recover as economic growth picks up and lockdowns ease, but worries about India's surging second wave of COVID-19 cases limited gains. U.S. West Texas Intermediate (WTI) crude futures dropped 13 cents, or 0.21%, to $61.51 a barrel, also after rising on Thursday. Brent crude futures fell 29 cents, or 0.44%, to $65.44 a barrel, after rising on Thursday. "Oil prices rebounded for a second day as a lower-than-expected U.S. jobless [Read more]
The state of royalty companies in Alberta
According to alberta.ca, the government owns 81% of oil and gas resources in Alberta and collects royalties from companies when an oil or gas well or oilsands project is in production, and are a major source of revenue for the province. At the recent CAPP Symposium, there was a panel titled Royalty Companies: Stable Business Models in Volatile Markets with David Spyker, President and CEO, Freehold Royalties Ltd., Andrew Phillips, President and CEO, PrairieSky Royalty Ltd., and Marty Staples, [Read more]
Precision Drilling CEO says Canadian and U.S. GHG targets are ‘extremely aggressive”
CALGARY - New greenhouse gas emission targets set by Canada and the United States are "extremely aggressive" and being made without proper process, says the CEO of Calgary-based Precision Drilling Corp. But Kevin Neveu says he supports the climate change goals behind commitments by Prime Minister Justin Trudeau to slash Canada's GHGs by 40 to 45 per cent and by U.S. President Joe Biden to cut emissions by 50 to 52 per cent by 2030. Neveu says there are solutions available now such as using [Read more]
Crude-by-rail exports fall by 43 per cent to 111,900 bpd in February, says regulator
CALGARY - The Canada Energy Regulator says Canadian crude-by-rail exports fell by 43 per cent in February compared with the previous month. It says lower oil production and strong prices in Canada compared with U.S. benchmarks, along with the impact of the polar vortex cold weather event on southern U.S. refineries, meant fewer shippers elected to send their barrels by rail. A total of 111,900 barrels per day were exported by rail in February, down from 195,500 in January. Crude-by-rail [Read more]