(Reuters) - U.S. energy companies added one oil rig this week, the fourth consecutive week of increases, despite a 9 percent decline in crude prices over the past four weeks. Despite that decline, producers still expect higher prices for their oil in 2018 than they received in 2017. The oil rig count in the week to June 15 rose to 863, the highest level since March 2015, General Electric Co’s Baker Hughes energy services firm said in its closely followed report on Friday. That was the [Read more]
Headlines
Op Ed: My open letter on “subsidies” in the energy industry
As someone who works in the oil and gas industry, my fatigue at the rhetoric percolating around the country piqued when the discussion of “subsidies” once again reared its head. According to a headline in the National Post, “Canada's billions in fossil fuel subsidies to go under the microscope”, the Government will take a step towards its promise of getting rid of fossil fuel subsidies. As someone who has the responsibility of managing the finances of my company, I can say that this sort of [Read more]
Toscana Sells Gas-Weighted Assets, Completes Renewal of its Credit Facilities and Proposes to Consolidate its Carmangay Barons Oil Pool
CALGARY, Alberta, June 14, 2018 (GLOBE NEWSWIRE) -- Toscana Energy Income Corporation ("Toscana" or the "Corporation") (TSX:TEI) is pleased to announce that it has sold its gas-weighted Gross Overriding Royalty Interests (the “Gas Assets”) to a private company for total cash consideration of $7.5 million, subject to customary industry adjustments, with an effective date of April 1, 2018. The Gas Assets have current net production of approximately 200 BOE/d (65% gas). Proceeds of the sale of the [Read more]
Strath Resources Announces Transformative Acquisition of Montney Assets
CALGARY, June 14, 2018 /CNW/ -Strath Resources Ltd. ("Strath") is pleased to announce that it has reached an agreement with Paramount Resources Ltd. ("Paramount") for the acquisition of Paramount's assets in the Resthaven/Jayar area of the Kakwa region for total consideration of $340 million. Acquisition Highlights 201 sections of land (152 net) with multi-zone potential, including 77 sections of Montney rights (75 net) 62 mmcf/d of owned processing capacity at the Pembina 8-11 and [Read more]
Potential Cushing bottleneck could increase U.S. oil discount
NEW YORK, June 14 (Reuters) - As the discount of U.S. crude to global benchmark Brent nears three-year highs, an emerging bottleneck at the key storage hub in Cushing, Oklahoma, is making U.S. futures vulnerable to a drop, traders and analysts said. Infrastructure constraints in the shale-rich Permian basin have already kept U.S. oil prices below international grades. Now, new constraints threaten to depress them even further and widen the gap between U.S. West Texas Intermediate crude (WTI) [Read more]
Paramount Resources Ltd. to Sell Non-Core Oil and Gas Properties in Resthaven / Jayar for $340 Million
CALGARY, June 14, 2018 /CNW/ - Paramount Resources Ltd. (TSX:POU) ("Paramount" or the "Company") is pleased to announce that it has entered into a purchase and sale agreement with Strath Resources Ltd. ("Strath") pursuant to which Strath will acquire Paramount's oil and gas properties and related infrastructure at Resthaven / Jayar in the Kakwa region (the "Assets") for total consideration of $340 million, subject to customary purchase price adjustments (the "Transaction"). The consideration [Read more]
U.S. oil firms use shale know-how to revitalize old oilfields
BURTON, Texas (Reuters) - Among vineyards and cow pastures in east Texas last month, roughnecks started to drill in an oilfield that is 25 years past its production peak. Houston-based oil producer Wildhorse Resource Development Corp tasked the crew with breathing new life into the field by using technology developed for fracking shale rock. In the limestone and clay Austin Chalk formation, which stretches across south Texas into central Louisiana, Wildhorse is among a growing group of [Read more]
South Dakota high court dismisses appeal against Keystone XL
PIERRE, S.D. - South Dakota's Supreme Court has dismissed an appeal from opponents of the Keystone XL oil pipeline, saying a lower court lacked jurisdiction to hear their cases. Groups fighting TransCanada Corp.'s pipeline appealed a judge's decision last year upholding regulators' approval for the pipeline to cross the state. But the high court ruled Wednesday that justices didn't "reach the merits of the case" because the lower court lacked jurisdiction to hear the appeal of the Public [Read more]
Crude-by-rail exports hit three-year high as Canadian oil discounts rise
CALGARY - The National Energy Board says exports of Canadian crude oil by rail to the United States jumped to a three-year high in March. In a report, the federal agency says average crude-by-rail volumes reached just over 170,000 barrels per day, the highest since December 2014. The NEB says crude-by-rail exports were driven by steep discounts for Western Canadian Select heavy oil versus New York-traded West Texas Intermediate, with the March average price difference at about US$23 per [Read more]
Supreme Court will not hear drug testing appeal involving oilsands workers
OTTAWA - The Supreme Court of Canada will not hear a union's appeal of a key ruling about random drug testing at Suncor Energy's oilsands operations in northeast Alberta. Suncor began testing staff in safety-sensitive jobs six years ago, prompting Unifor — which represents some 3,000 workers at the site — to file a grievance claiming the tests infringe privacy. An arbitration tribunal allowed the union's grievance, concluding the testing policy was an unreasonable exercise of management [Read more]