Canada's steam-driven oil facilities are bearing the brunt of output cuts as the industry copes with low prices, and deeper reductions may risk permanent damage to the sites. The COVID-19 pandemic has severely cut fuel demand as the global economy slows, leading refiners to reduce purchases of crude. Canada, the world's fourth-largest oil producer, has started slashing production, but analysts say the biggest cuts lie ahead. Steam-assisted gravity drainage (SAGD) projects heat seams of [Read more]
Headlines
ConocoPhillips to cut oil production in Alberta, cites weak prices, COVID-19
CALGARY - ConocoPhillips says it plans to cut production at its Surmont oilsands operation in northern Alberta due to low oil prices until market conditions improve. The Houston-based company said in a release that it expects to reduce production at Surmont by approximately 100,000 barrels of oil per day to 35,000 by May. It said given ongoing uncertainty and continued market volatility, the company's previous 2020 guidance items should not be relied upon. "These actions reflect our [Read more]
Canada weekly rig count down 5 to 30
Canada’s fleet of active drilling rigs shrank from 35 to 30 since last week according to data from Baker Hughes. Total drilling count was 30 at April 17th. 7 rigs were drilling for oil; 23 for natural gas. The drilling activity in Alberta fell from 22 to 17 since last week. Saskatchewan’s drilling grew to 2 rigs. View a full breakdown of Western Canada’s rig activity. [Read more]
CAODC commends Federal Government for $1.7 billion investment in well reclamation
The Canadian Association of Oilwell Drilling Contractors is pleased with the Federal Government’s $1.7 billion commitment to the reclamation of abandoned wells at a time when workers in the oil and gas industry are struggling. An investment like this will put well-servicing companies back to work for an extended period, and will also employ many of the ancillary services related to well abandonment such as excavation and transportation companies. Additionally, steady service rig activity in [Read more]
CAPP issues statement recognizing the Government of Canada’s support for the oil and natural gas industry
CALGARY - The Canadian Association of Petroleum Producers (CAPP) recognizes the Government of Canada's support for the oil and natural gas industry, and appreciates the initiatives announced today which will protect about 10,000 jobs across the country. The $1.7 billion announced today, for the closure and reclamation of orphan and inactive wells in Saskatchewan, Alberta, and British Columbia, is welcome news. Reducing environmental liabilities is a priority for the oil and natural gas [Read more]
BDC to increase support to Canadian oil and gas sector companies
MONTREAL - As part of a Team Canada response to the COVID-19 crisis, the Government of Canada, through BDC, Canada's bank for entrepreneurs, and Export Development Canada (EDC) will make available additional financial capacity to help support Canada's oil and gas sector. The commercial support, being developed by BDC and EDC, is intended to help Canada's exploration and production, mid-stream, and oil-field companies navigate these uncertain times. The new measures are aimed at helping [Read more]
U.S. oil rigs see biggest decline in a week since Feb 2015
Oil rigs in the United States saw their steepest cuts since February 2015 as crude prices more than halved since the start of the year despite fresh global efforts by producers to cut output to counter a glut triggered by demand destruction from the coronavirus pandemic. Drillers cut 66 oil rigs in the week to April 17, bringing the total count down to 438, the lowest since October 2016, energy services firm Baker Hughes Co said in its closely followed report on Friday. The oil rig count, an [Read more]
Marathon says it will idle 166,000 barrel-per-day Martinez, California refinery
Marathon Petroleum Corp will idle its 166,000 barrel-per-day (bpd)refinery in Martinez, California beginning April 27 in response to the coronavirus pandemic's hit to demand for refined products, according to a company official. The company did not provide further comment on the likely duration of the idle, but said it intends to return the plant to normal operations once demand levels support doing so. The Martinez plant is the second in the United States and third in North America to [Read more]
Trudeau says $1.7B coming for orphaned-well cleanups
OTTAWA - Prime Minister Justin Trudeau says the federal government will support work in the oil and gas sector by spending $1.7 billion to help clean up "orphaned wells." He says restoring abandoned oil and gas wells is good for the environment, for landowners who have to contend with them, and for thousands of workers the effort will employ. The federal government is also creating a $750-million fund to cut methane emissions. Speaking outside his Ottawa residence, Trudeau says the [Read more]
Oil mixed as shrinking China economy overshadows Trump plan to ease U.S. coronavirus lockdown
Oil prices were mixed on Friday after the weakest Chinese economic data in decades showed the impact of the coronavirus pandemic, offsetting some earlier gains on optimism for President Donald Trump's early plans to revive the U.S. economy. U.S. crude for May delivery, which expires on April 21, was down $1.46, or 7.5%, at $18.28 a barrel. Brent was up by 5 cents, or 0.2%, at $28.45 a barrel. China's economy shrank for the first time since at least 1992 in the first quarter, as the [Read more]