OPEC+ Outlines Record Oil Production Cut; Mexico Balks
OPEC, Russia and other allies outlined plans on Thursday to cut their oil output by more than a fifth and said they expected the United States and other producers to join in their effort to prop up prices hammered by the coronavirus crisis.But the group, known as OPEC+, said a final agreement was dependent on Mexico signing up to the pact after it balked at the production cuts it was asked to make. Discussions among top global energy ministers will resume on Friday.The planned output curbs by OPEC+ amount to 10 million barrels per day (bpd) or 10% of global supplies…
OPEC+ Debates Biggest Ever Oil Output Cut as Virus Destroys Demand
OPEC and allies are working on a deal for an unprecedented production cut equivalent to around 10% of global supply, an OPEC source said after U.S. President Donald Trump called on oil nations to stop the oil rout caused by the coronavirus pandemic. The meeting of OPEC and allies such as Russia has been scheduled for Monday, April 6, Azeri's energy ministry said, but details were still thin on the exact distribution of production cuts. Oil prices have fallen to around $20 per barrel from $65 at the start of the year as more than 3 billion people went into lockdown because of the virus, reducing global oil demand by as much as a third or 30 million barrels per day.
Update: Brent Oil Rises above $32 on Hopes of Output Deal
Benchmark Brent crude oil futures rose as high as $33.05 a barrel on Friday on rising hopes of a new global deal to cut global crude supply.Brent crude futures were up 9.3%, or $2.79, at $32.73 a barrel by 1014 GMT. Brent soared as much as 47% on Thursday for its highest intraday percentage gain on record. It closed 21% up, still about half the $66 at which it was trading at the end of 2019.U.S. West Texas Intermediate (WTI) crude also moved back into positive territory, rising 4.8%, or $1.22, to $26.54 a barrel after advancing by 24.7% on Thursday.U.S.
Upstream Sector Leads O&A M&A in 2019
A latest research revealed that the upstream sector accounted for the bulk of mergers and acquisitions (M&A) in the global oil and gas industry in 2019, generating some high-value transactions during the process.According to GlobalData's theme report, ‘M&A in Oil and Gas – 2020’, the acquisition of Anadarko Petroleum by Occidental Petroleum in April 2019 for a purchase consideration of US$57bn was the highlight of oil and gas M&A activity last year, says GlobalData, a leading data and analytics company.Ravindra Puranik, Oil & Gas Analyst at GlobalData…
Canadian Energy Sector to Boost Spending
Capital spending by Canada's oil and gas industry will rise by 6%, or C$1.9 billion, in 2020 from the previous year, halting a six-year decline due to improving economics, the Canadian Association of Petroleum Producers (CAPP) forecast on Thursday.CAPP said a corporate tax cut by Alberta's provincial government last year and its easing of oil production limits will lead to higher spending.Congested pipelines created a glut of oil in storage in the Western Canadian province in recent years, depressing prices and causing its government to curtail…
Cenovus Energy Sets Out to Slash Emissions
Canada's Cenovus Energy on Thursday unveiled plans to reduce per-barrel greenhouse gas emissions by 30% by the end of 2030, as the country's oil industry faces growing pressure from environmental activists.The Alberta-based integrated oil and gas company said it will spend an additional C$1.5 billion on businesses run by the country's indigenous communities.Opposition from environmental and indigenous groups have stalled new pipeline projects in Canada and the United States that are needed to move Canadian crude to refineries. Investors in the region have also become more vocal about environmental…
Keystone Pipeline Still Closed, ND Leak Source Unclear
The precise source of a leak on TC Energy Corp's Keystone oil pipeline in North Dakota has not yet been identified, a spokesman for the U.S. Pipeline and Hazardous Materials Safety Administration (PHMSA) said on Monday.There is no estimated timeline for restart of the pipeline and the company is continuing excavation work to isolate the affected part of the pipeline, the spokesman said by phone.Clean-up crews in Walsh County, North Dakota, have been working to plug the Keystone pipeline after a more-than 9,000-barrel oil leak last week.Work continues to progress at the site with about 200 personnel focused on clean-up and remediation activities…
TC Energy: North Dakota Spill Shutters Keystone pipeline
Oct 30 (Reuters) - TC Energy Corp said on Wednesday it is shutting its Keystone crude pipeline after a late Tuesday oil spill in North Dakota.The company said it detected a drop in pressure on Tuesday night on its 590,000-barrel-per-day (bpd) Keystone oil pipeline system from Canada, it said in a statement, without specifying the exact impact on operations."TC Energy immediately began the process to shut down the pipeline, activated its emergency response procedures and dispatched ground technicians to assess the situation," the company said.It was not clear how much crude oil was spilled, according to Brent Nelson, Walsh County Emergency Manager.
Canadian E.Coast LNG Export Plans Progress Shell Deal
Pieridae Energy moved closer to building a liquefied natural gas (LNG) export terminal on Canada's East Coast after taking ownership of fields from Royal Dutch Shell which will feed gas into the plant, the company said.The Goldboro LNG terminal would be the first on Canada's East Coast and compete with the growing number of plants on the U.S. Gulf Coast, hoping its shorter distance to Europe and further west will help sell its LNG by cutting shipping costs.Pieridae said in a statement late on Thursday it had closed a C$190 million ($145 million) acquisition of Shell's gas assets in Alberta's Foothills region…
Canadian Natural Resources eyes Rail Contracts
Canadian Natural Resources, the country's biggest oil and gas producer, is looking at taking on the Alberta provincial government's contracts to move crude by rail, a senior company executive said on Thursday.Shipping more crude by rail is seen as critical for Canadian oil producers due to congested pipelines that forced Alberta to order mandatory oil curtailments this year.Alberta's United Conservative Party government said in June that it would divest rail contracts amounting to 120,000 barrels of crude per day (bpd) to the private sector this fall.
TC Energy: Order Blocking Keystone XL Pipeline Lifted
TC Energy Corp's long-delayed Keystone XL oil pipeline took a small step forward this week, after a U.S. court overturned an injunction that barred certain work on the project, the company said.The company, which also reported a better-than-expected quarterly profit on Thursday, has been working for more than a decade to build the controversy-ridden 830,000 barrel per day (bpd) pipeline.KXL would run from an oil hub at Hardisty, Alberta, to Steele City, Nebraska, where it would join TC Energy's existing Keystone pipeline system.TC Energy, formerly TransCanada Corp…
Suncor Posts Higher Upstream Production
Suncor Energy Inc, Canada's second-largest oil and gas producer, on Wednesday reported a 5% rise in second-quarter operating profit and higher upstream production.Suncor's total production rose to 803,900 barrels of oil equivalent per day (boepd) in the quarter, which was a record. Last year, the company produced 661,770 (boepd).Operating profit rose to C$1.25 billion ($951.44 million) or 80 Canadian cents per share, in the three months ended June 30, from C$1.19 billion, or 73 Canadian cents a share, a year earlier.The mandatory output cuts imposed by the Alberta provincial government since Jan.
Husky Energy Beats Profit Estimates
Husky Energy Inc reported a better-than-expected quarterly profit on Thursday, as higher Canadian crude prices following Alberta government's mandatory output cuts more than offset the company's lower production and weak refining margins.The Calgary-based company said average realized prices rose 7.3% to $53.35 per barrel of oil equivalent after the mandatory curtailment on oil production during the quarter to ease export pipeline congestion.Husky's average quarterly production fell 9.2% to 268,400 barrels of oil equivalents a day in the reported quarter as the company complied with the curtailments.The government's move has been a shot in the arm for some producers…
Pieridae Mulls Extensions with Uniper
Canadian energy company has negotiated extensions of the key deadlines under its 20-year agreement with German energy trader Uniper.These include expected commercial deliveries of LNG gas to Uniper to start between November 30, 2024 and May 31, 2025, and the extension of the deadline to make a positive financial investment decision (FID) for the company’s proposed Goldboro LNG facility to September 30, 2020.The 20-year agreement with Uniper is for half the liquefied natural gas produced at Goldboro or 5 mmtpa (million tonnes per annum).“These extensions allow us to complete the work needed to make a final investment decision for the Goldboro Project…
Husky Cuts Long-term Spend to Boost Cash Flow
Husky Energy Inc on Tuesday nearly doubled its free cash flow target over five years as it cut its planned capital spending at a time when investors have been calling on oil and gas companies to shore up capital for buybacks and dividends.Oil production curtailments imposed this year by the government of Canada's energy-rich province Alberta, as well as rising global oil prices, have allowed Canadian producers to rake in the highest revenues in five years. Many favor paying down debt or returning cash to shareholders as uncertainty remains about construction of new Canadian pipeline capacity."Oil and gas and energy is pretty unloved…
Suncor Q1 profit beats estimates
Canada's Suncor Energy Inc reported a profit on Wednesday that beat analysts' estimates as the integrated oil producer reaped the benefits of improved Canadian heavy crude pricing due to Alberta's production curtailments.The government's mandated cuts that came into effect on January 1 have helped free up some pipeline space for the country's crude, sharply reducing a price discount on Canadian versus U.S.
Husky Energy Beats Profit Estimate
Canada's Husky Energy Inc beat analysts' estimates for quarterly profit on Friday, as it benefited from improved Canadian crude prices following Alberta's output cuts and investment in a number of refineries and pipelines boosted its margins per barrel.The oil and gas producer, which runs drilling and refining businesses in Canada, the United States and Asia, said average realized prices rose to C$47.20 per barrel of oil equivalent (boe) in the first quarter, from C$40.87 per boe a year earlier.In December last year, Alberta mandated temporary…
Oil Dips on U.S. Manufacturing Data
Oil prices reversed course on Friday, falling 2 percent as bearish U.S. manufacturing data stoked concerns over global energy demand growth.The ISM manufacturing activity index in February sank to the lowest since November 2016, and was below expectations.U.S. West Texas Intermediate futures fell $1.11 to $56.11 a barrel by 11:15 a.m. EST (1615 GMT). The contract had earlier hit a high of $57.88.Global benchmark Brent crude futures for May fell $1.26 to $65.05 a barrel, after earlier touching a session high of $67.14."We have been the island of prosperity…
Oil Steady, Supported by OPEC Cuts
Record U.S. output, exports offset some of OPEC's cuts.Oil prices were broadly steady on Friday as surging U.S. supply and concerns of a global economic slowdown were offset by falling OPEC output.International Brent crude futures were at $66.39 per barrel at 1231 GMT, up 8 cents from Thursday's settlement.U.S. West Texas Intermediate (WTI) crude oil futures were at $57.38 per barrel, up 16 cents."Oil prices are finely balanced in today's trading session," senior Interfax Energy analyst Abhishek Kumar said.The 14-member Organization of the Petroleum Exporting Countries pumped 30.68 million barrels per day (bpd) in February…
Part of Keystone Pipeline Still Shut After Missouri Leak -TransCanada
TransCanada Corp said on Monday a part of its Keystone crude pipeline from Steele City, Nebraska, to Patoka, Illinois, remained shut after a leak was discovered in the St. Louis, Missouri, area last week.The cause and source of the spill have not been determined and there is no estimated timeline for a restart, TransCanada spokesman Terry Cunha said in an email.The 590,000 barrels-per-day Keystone pipeline system is a critical artery taking Canadian crude from northern Alberta to U.S. refineries.TransCanada told Keystone shippers last week that it was declaring force majeure on shipments affected by the shutdown, according to a notice seen by Reuters.
