Staff from the Bank of Canada and Suncor Energy are among scheduled speakers at a Canadian parliamentary committee that will review the impact of falling oil prices on the country’s economy. Executives from Canada’s energy, finance and manufacturing sectors are scheduled to speak to the standing committee on finance this week.
Western Canada-focused oil and gas company Bellatrix Exploration said yesterday 2014 was another successful and profitable growth year for the company. The Calgary firm said it benefited from the largest capital programme in its history, which provided 18% growth in proved plus probable reserves to a total of 250million barrels of oil equivalent (boe).
An Australian oil and gas firm has applied to the US government to export huge amounts of gas to North America. Liquified Natural Gas Limited today filed the application to the US Department of Energy through its subsidiary company, Bear Head - which is made up of both Bear Head LNG Corporation and Bear Head LNG (USA). Their request is for the export of around 440 billion cubic feet of American natural gas to Canada and around eight million tonnes of liquified natural gas (LNG) from Canada to other countries.
ConocoPhillips is considering the sale of properties that account for about 20 percent of its production in Western Canada outside the oil sands. The largest US independent oil and natural gas producer is weighing whether to sell properties spread across British Columbia, Alberta and Saskatchewan in 2015, according to a copy of a marketing document. Production from the properties is mostly gas and amounts to the equivalent of about 31,000 barrels of oil a day after royalties.
Suncor Energy Inc., Canada’s largest oil company, will push ahead with its planned Fort Hills oil sands project even as the price of oil hovers around $50 a barrel. Suncor will spend C$1.6 billion ($1.3 billion) this year as it advances construction of the project, the Calgary-based company said in a statement.The operation will begin producing oil at the end of 2017, the company added.
Chevron Corp is slowing spending on the Kitimat liquefied natural gas project on Canada’s Pacific Coast amid a crash in oil prices and competition from new projects worldwide. The San Ramon, California-based producer is also delaying all final investment decisions except for its Tengiz field in Kazakhstan, Chief Executive Officer John Watson said on a conference call on Friday. He did not elaborate on the slowing of investment in Canada.
The Canadian Association of Oilwell Drilling Contractors (CAODC) said there could be up to 23,000 jobs losses this year. CAODC has anticipated that the lower price of oil and natural gas will adversely affect the number of active drilling rigs in service, resulting in an industry-wide slowdown and employment losses. Last year, it originally issued its 2015 drilling forecast with an assumption of oil at $85 per barrel.
The Canadian Association of Oilwell Drilling Contractors (CAODC) has released its 2015 Drilling Activity Forecast, which projects a 10% decrease in activity. The forecast is that Canadian land-based drilling rigs will drill 10,354 wells next year. The uncertainty around pipeline construction was a determining factor in the activity outlook.
A price war is brewing between Canada and Latin America over who will satisfy US Gulf Coast refiners’ hunger for heavy oil. The new Seaway Twin pipeline will almost double the amount of heavy Canadian crude coming to Gulf terminals and plants to about 400,000 barrels a day starting in January, according to Calgary-based based ARC Financial Corp. The shipments are growing even without the Keystone XL pipeline, which has been delayed for six years because of environmental opposition. The Canadian supply will square off against crudes from Mexico and Venezuela that have traditionally fed refineries along the Texas and Louisiana coasts.
Canadian operator Enbridge shut down one of its pipelines after a leak at the Regina Terminal in Saskatchewan. A release from the line within the on-site pumping station had been reported. A spokesman said there was no impact to the public, wildlife or waterways following the incident.
Repsol has reached an agreement to buy Talisman Energy in a deal worth an estimated $8.3billion. The move comes after a week of speculation the two companies were in talks once again. Earlier this year Repsol had confirmed it was looking at a potential transaction with the Canadian energy firm. A spokesman said the deal received the unanimous approval of both boards.
Enegi Oil has agreed to end a farm-in agreement with BSE (Black Spruce Exploration) in Canada. The company said it the decision had been taken in recognition of the “problems” in completing investment for large-scale plans in the current climate. It said the termination of the agreement would also allow for faster results and appropriate regional development in plays such as western Newfoundland.
Toronto-based MCW Energy Group claims it will begin producing cleaner, cheaper oil from oil sands next year at a newly built processing plant in northeastern Utah. It said that a new system that dispenses with the use of water is behind the claim. MCW said the system will enable oil sands to be produced cleanly “without creating the toxic wastelands that have resulted from oil sands projects in Western Canada."
According to CanOils’ new report The Canadian Oil Sands Outlook 2015 the Canadian oil sands industry looks set to have capacity to produce over 3million barrels per day by the end of next year, with production likely to approach 2.5million bpd. Of these figures, a higher portion than ever will be controlled by non-Canadian operators, with the trend of greater influence year-on-year by internationally-held companies continuing into the coming year. Assuming all scheduled new projects and expansions actually come onstream by December 31, next year will see a 16.6% increase in overall production capacity compared with this year.
Canada-based oil and gas company Spyglass Resources said one of its independent directors has stepped down from its board. Michael Rapp, chief executive of Clarke Inc, tendered his resignation with the company yesterday.
Wood Group PSN (WGPSN) will continue its work on an offshore Canadian platform in a multi-million dollar deal. The company has been awarded a five-year contract extension for its engineering, procurement and construction services to the Hibernia platform. Hibernia Management and Development Company Ltd (HMDC) awarded the contract for work on the platform, which is in offshore Newfoundland and Labrador.
A newbuild Diving Support Vessel (DSV) currently being built by Vard has been named as the ‘Deep Explorer’. The state-of-the-art vessel was commissioned by French services company, Technip. The company had previously announced in April plans to invest in the new vessel, which has been equipped with the latest navigational technology.
The UK government has signed an agreement with Canada to work together on research and knowledge sharing for Carbon Capture and Storage (CCS). Both countries released a joint statement which identifies how they plan to work together and build on the work they have already undertaken. The use of CCS is viewed as one of the most cost effective technologies for decarbonisation of the UK’s power.
Pan Orient Energy has sold a 50% interest in its subsidiary which operates its L53/48 Thailand concession to Sea Oil for $42.5million including a working capital adjustments of $2.4million. The deal is expected to be closed by January, with a $4million break free payable by Sea Oil if shareholder approval is not obtained.
Atlantis Resources has signed a 10-year seabed sublease with the Fundy Ocean Research Centre (FORCE) in Nova Scotia. The sublease will provide Atlantis with a berth for tidal turbine deployment in the Bay of Fundy within the area allocated to FROCE under its head lease agreement.
Donnycreek Energy has entered into an arm’s length agreement with Contact Exploration to merge and create a new corporation. The two companies will become Kicking Horse Energy and the merger will consolidate the interests of Donnycreek in Alberta, Canada.
The European Union has abandoned a plan to label oil sands as highly polluting. A directive from the EU’s Fuel Quality Directive had planned to force energy suppliers to reduce the carbon intensity of their products.
Independent petroleum company Seven Generations Energy (7G) has struck a hydraulic fracturing deal with Schlumberger Canada.