CALGARY - Oilsands operators have little choice but to keep pumping despite the fact they are losing money on every barrel they produce at today's crude prices, according to an industry analyst.The price of West Texas Intermediate crude, the closely watched U.S. benchmark, fell to its lowest level in 12 years on Tuesday, settling at $30.44 after briefly dipping below the US$30 threshold in intraday trading. That's more than a 70 per cent decline from mid-2014 highs.And the WTI price looks robust [Read more]
Headlines
Canadian banks stress testing loan portfolios for rock-bottom oil prices
TORONTO - Canadian banks are taking a closer look at their loan books in light of continued declines in the price of crude, with one bank stress-testing its oil and gas sector portfolio to see how it would perform if the commodity dips as low as US$25 a barrel."You've got to ask yourself, how low could it go?" Bank of Montreal's chief executive Bill Downe said as he laid out the bank's stress test scenarios during a conference of bank CEOs in Toronto on Tuesday.Banks use stress tests, which are [Read more]
Oil company BP cutting 4,000 jobs by end of 2017 amid sharp drops in the price of crude
LONDON - Oil company BP is cutting some 4,000 jobs in exploration and production over the next two years amid sharp drops in the price of crude. The cuts in BP's upstream business globally will include the loss of some 600 jobs in the North Sea. The cost-cutting announced Tuesday comes as the price of oil dropped to a 12 year-low near $31 a barrel. Part of the decline is due to concern over a drop in demand in China, which is depressing commodity prices worldwide. Company officials [Read more]
Bellatrix Announces Strong 2015 Operational Results and a Focused First Half 2016 Capital Budget
TSX, NYSE: BXE CALGARY, Jan. 12, 2016 /CNW/ - Bellatrix Exploration Ltd. ("Bellatrix" or the "Company") (TSX, NYSE: BXE) is pleased to announce strong preliminary 2015 operational results and a focused first half 2016 capital budget of $46 million. Building on the operational successes from 2015, the Company's first half 2016 capital budget targets continued full cycle profitable growth through development of the Company's Spirit River liquids rich natural gas play, which remains one of the [Read more]
Enerplus Announces Sale of Certain Canadian Natural Gas Assets
CALGARY, Jan. 11, 2016 /CNW/ - Enerplus Corporation ("Enerplus") (TSX & NYSE: ERF) announces that it has entered into agreements to sell various Canadian natural gas properties located in Alberta. The total cash consideration for these assets is approximately $193 million, subject to closing adjustments, and is accretive on both a funds flow per debt adjusted share and production per debt adjusted share basis. Enerplus intends to use the proceeds to reduce outstanding indebtedness providing [Read more]
Alberta’s Notley says panel report on oil royalties still weeks away
EDMONTON - The results of Alberta's royalty review have now been put off for a few more weeks — but critics say time is of the essence."We said (from the beginning) that a review shouldn't be done at all, but if it was done it needed to be over very quickly," Wildrose Leader Brian Jean said Monday in an interview."That, of course, would reduce the uncertainty in the marketplace, and add stability and confidence for the business community and investors generally. This has not happened. The review [Read more]
Trans Mountain pipeline project doesn’t meet B.C.’s 5 conditions, says minister
VANCOUVER - Kinder Morgan is failing British Columbia's test for proceeding with a proposed pipeline expansion, so far unable to prove it will meet key safety requirements or serve the province's best interests, the environment minister says.Mary Polak said the company has not provided enough evidence in its plans for the Trans Mountain pipeline to convince the government it can meet five pre-conditions for approval.The province said in its final written submission to the National Energy Board [Read more]
US crude dips below $31, 12-year low
Oil prices fell to a new 12-year low today. It was reported by CNBC that this comes "as slowing growth in China rattled investors' hopes for demand this year and traders increased bets against any near-term recovery." WTI was down $2.06 at $31.10 per barrel by 1:20 p.m. EDT, having briefly dipped below $31 to the lowest level since December 2003. Brent was down by $2.15 at $31.40 a barrel, after falling to the lowest level since April 2004. "Analysts pointed to China's slowdown, which [Read more]
Seven Generations Defers $200 Million of Discretionary 2016 Capital Investment Due to Lower Commodity Prices
CALGARY, ALBERTA--(Marketwired - Jan. 10, 2016) - Seven Generations Energy Ltd. (TSX:VII) is deferring about $200 million of previously planned, discretionary capital investment in 2016 due to the recent 30 percent decrease in commodity pricing and the resulting expectation of reduced cash flow. Despite this deferral, 7G maintains 2016 production guidance of between 100,000 and 110,000 barrels of oil equivalent per day (boe/d), which is about 75 percent higher than 7G's record production in 2015 [Read more]
Nearly half of Albertans now struggling to save: ATB Investor Beat
EDMONTON, Jan. 11, 2015 /CNW/ - While building a nest egg for retirement is a top priority for most Albertans, nearly half (48 per cent) of those who are attempting to do so said they are behind on their retirement savings goals. That's according to the latest ATB Investor Beat. In the previous survey conducted in July, 2015, 40 per cent said they were struggling to save for retirement. Albertans who said they're behind cited cost of living and unexpected expenses as the two most common reasons [Read more]