Canada's New LNG Exports Have Yet to Lift Gas Prices
Last month's start-up of LNG Canada, the country's first large-scale liquefied natural gas export facility, has failed to lift Western Canadian natural gas prices as quickly as some market participants and observers expected, due to a persistent supply glut and the gradual pace of the facility's ramp-up.Shell-led Canada shipped its first cargo of 70,000 metric tons from the country's Pacific coast on June 30, to South Korea.The export facility, located in northern British Columbia, is anticipated to bring 2.1 billion cubic feet per day (bcfd) of new gas demand to Western Canada…
Alberta has eliminated the gas flaring limit in 2024.
Calculations show that energy producers in Alberta, Canada’s largest oil producing province, exceeded the self-imposed provincial limit for annual gas flaring by 2024, for the second consecutive year. Alberta's energy regulator announced late last week that it would be ending the flaring limit. The regulator, who quietly posted a bulletin to its website, is the first one to report this change. The regulator confirmed Monday that the limit had been removed and stated it was in response to the direction of the provincial government. Canada is the world's number one oil producer. Canada, the world's No.
Keyera acquires Plains' Canadian Natural Gas Liquids business for $3.77 Billion
Keyera Corp announced on Tuesday that it had agreed to purchase substantially all of Plains Canada's Canadian natural gas liquids businesses for C$5,15 billion ($3,77 billion) cash. The Canadian-based pipeline operator stated that the purchase expands Keyera’s position by bringing a natural gas liquids (NGL) corridor from Western Canada to Eastern Canada under Canadian ownership and brings key NGL infrastructure. Keyera, a Canadian energy infrastructure company, and AltaGas, a Canadian-based firm that processes liquefied gaseous petroleum, entered into long-term contracts in February. The announcement comes as U.S.
Shell CEO: Local price index makes LNG Canada attractive
Shell's LNG Canada is attractive to buyers because it uses a Canadian Alberta Energy Company price index, which is lower in comparison with the Henry Hub price for the U.S. The company's CEO said this on Tuesday. Shell CEO Wael Sawan told the Energy Asia Conference that the AECO indexation is what makes LNG Canada so attractive in the modern world. He added that the AECO gas will be available at lower prices. He said: "The differential between AECO, Henry Hub and the proximity of Asia makes this a very attractive project. According to SNL Financial, the AECO Storage Hub's price was 96.6 Canadian cents per million British Thermal Units on Monday.
Canadian Natural Resources restarts its oil sands operations as the wildfire threat decreases
Canadian Natural Resources restarted the Jackfish 1 oil-sands project in northern Alberta, after determining that wildfires were safe to a distance. The largest oil producer in the country said that its operations at the site would ramp up over the coming days and aim to reach full production of 36,500 barrels a day by Friday. Canadian Natural evacuated all non-essential employees from the Jackfish 1 facility and halted production on Saturday as a precaution due to wildfires south of Fort McMurray. Wildfires out of control have caused several companies to shut down their operations in Canada's largest oil-producing province.
Canadian oil sands companies evacuate workers because of wildfire threat
MEG Energy, a Canadian oil sands firm, said that it had evacuated non-essential workers from its Christina Lake facility in northern Alberta because of wildfires burning there. The company has said that it will not reduce its oil production on the site. It is located 150 km (93 miles south) of Fort McMurray, the hub for oil sands. The wildfires in Canada's oil producing province of Alberta affected several companies' operations this week. Cenovus said that it would reduce the number of non-essential workers at its Foster Creek plant as a precaution because wildfires are raging near Chipewyan Lake.
Alberta wildfire disrupts oil production and forces evacuations
Wildfires in Alberta, Canada forced the temporary shut-down of oil and gas production. Residents of a small community were also forced to evacuate. Alberta Wildfire estimates that the blaze is 1,600 hectares and is burning uncontrollably about 7 km north-northeast of Swan Hills, in the northern part. Oil-and-gas producer Aspenleaf Energy, which has wells in the area, evacuated its local field staff and temporarily halted operations, shutting in approximately 4,000 barrels-of-oil-equivalent per day of production. In an interview, CEO Bryan Gould stated that the fire occurred about 10 kilometers from Aspenleaf facilities on Monday evening.
Canadian oil and Gas CEOs avoid rash decisions during the price crash
On Tuesday, CEOs of Canadian producers of oil and gas said they were trying to avoid taking sudden decisions as the global oil price hovers around four-year lows. Doug Bartole said that his Calgary-based company, InPlay Oil, does not expect to reduce production or capital expenditures in the near future, despite recent oil price drops due to tariffs. Don't take any rash decision. Bartole stated in an interview that it was best to take a long-term view and wait for the outcome. He said this could change, however, if the price of oil continues to fall. Bartole stated, "I believe $50 oil would make a difference in the world a little more. "We are able to withdraw capital easily.
Whitecap Resources and Veren combine to create a C$15 billion Canadian Energy giant
The companies announced on Monday that Canada's Whitecap Resources, an oil and gas company, will merge with Veren through a merger of equals including debt in order to create a C$15 Billion ($10.43 Billion) company. The combined company is the largest landholders in Alberta Montney & Duvernay, regions which have attracted significant investment over the past few years and hold some of Canada's biggest shale reserves. Energy deals have been a big deal in North America over the past two years. The sector will continue to focus on improving operational efficiency and consolidating its core growth areas in 2025.
Canada mentions potash and oil as a possible lever to use in the tariff dispute
Melanie Joly, Canada's Foreign Minister, told Toronto businesspeople on Wednesday that Canada may use its oil and gas exports to negotiate if U.S. import tariffs increase. Canada has announced that it will impose tariffs worth C$155 billion on U.S. imports, but so far has not indicated whether or not it would reduce the exports of important commodities to the United States. Canada exports approximately 90% of all its crude oil exports to the United States. "Of Course, there is oil and gas." "We haven't laid that out yet, guys. We kept it in our game and in our cards as cards we could play if the situation escalated, and the U.S. is aware of that," Joly stated.
The US natgas price is rising due to concerns about Canada tariffs
U.S. Natural Gas Futures rose 10% on Tuesday to a 26 month high, on record flows into liquefied gas export plants. There was also concern that Canadian gas exports could be affected by the tariffs placed on Canada and Mexico by U.S. president Donald Trump. Canada provides about 8% total U.S. demand for gas, including exports. Some of these return to Canada. The U.S. will consume approximately 90.2 billion cubic foot per day (bcfd), and export another 21.1 bcfd as LNG or via pipelines in 2024 to Mexico, Canada and other countries. The majority of U.S. gas exports are to Mexico. In order to meet this demand, the U.S.
The US natgas price is rising due to concerns about Canada tariffs
U.S. Natural Gas Futures rose 10% on Tuesday to a 26 month high, on record flows into liquefied gas export plants. There was also concern that Canadian gas exports could be affected by the tariffs placed on Canada and Mexico by U.S. president Donald Trump. Canada provides about 8% total U.S. demand for gas, including exports. Some of these return to Canada. The U.S. will consume approximately 90.2 billion cubic foot per day (bcfd), and export another 21.1 bcfd as LNG or via pipelines in 2024 to Mexico, Canada and other countries. The majority of U.S. gas exports are to Mexico. In order to meet this demand, the U.S.
Alberta projects C$5.2-billion budget deficit if Trump tariffs proceed
Alberta, Canada's oil producing province, forecasted a deficit of C$5.2billion ($3.5billion) for fiscal 2025/26 if U.S. Tariffs were implemented. This would result in a decrease of government revenues as well as slowed economic growth. The outlook shows a drastic reversal in Alberta's financial health following what was expected to be a C$5,8-billion surplus for the current fiscal period. It also illustrates the widespread uncertainty Canadian policymakers face as they deal with the tariff situation. How can you plan a budget with so many unknowns? What will the U.S. President say or not say over the next few days, weeks, and months?
Minister says Canada's Alberta is looking to Japan for new LNG contracts amid US tariff threats
Rebecca Schulz is the minister for environment and protected areas in Canada's Alberta, which is a major producer of gas. She said that expanding into Japan was an important goal in light of a U.S. Tariff threat. Schulz, in an interview with a Japanese journalist in Tokyo on Wednesday evening, said: "The United States is a good example of why we need to diversify the markets we export to. Over the last week, she has met with officials, business lobbies, and company representatives. These include JERA, Japan’s largest LNG buyer, JOGMEC (Japan Gas Association), which is chaired by a Tokyo Gas executive.
Canadian Natural Resources will increase production and spending by 2025
Canadian Natural Resources announced on Thursday that it expects to see production increase by 12%, and capital expenditures rise by 13.5% in 2025. The company is betting on an increased demand due to tight oil supply. Canadian oil producers are projecting higher production in 2025. They bet on the resilient demand for Canadian crude oil on international markets. According to the U.S. Energy Information Administration, fuel demand in the United States will increase in 2025, as the industrial sector is expected to benefit from a reduction in borrowing rates. Canadian producers also benefited from the launch of the Trans Mountain expansion pipeline earlier last year.
Vermilion's Westbrick deal worth $745 million strengthens Canada’s Deep Basin position
Vermilion Energy, a Canadian company, announced on Monday that it would acquire Westbrick Energy, a privately-held oil and gas company. The deal will be for C$1.075 Billion ($746.53 M), mostly in cash. This acquisition will strengthen Vermilion Energy's position in Alberta's Deep Basin. In premarket trading, U.S. listed shares rose 1.8% to $9.03 per share. This acquisition will likely add 50,000 barrels per day of equivalent oil, consisting 75% of gas and 25% of liquid, to the existing production. Vermilion, based in Calgary, Alberta, said that it represented a 5% growth year-over-year and was forecast to generate over C$110,000,000 of free cash flow annually.
Cenovus Energy predicts increased production by 2025 for new projects
Cenovus Energy, a Canadian energy company, forecasted higher oil and natural gas production in 2025. It expects to benefit from the new projects that will be coming online. According to LSEG, the company expects upstream production of between 805,000 and 845,000 boepd by 2025. The midpoint is higher than analyst estimates of 820140 boepd. The company anticipates between 770,000 and 810,000 boepd this year. The U.S. Energy Information Administration has predicted that power consumption in the U.S. will increase in 2025, with data centers, manufacturing and other operations driving the demand. This could help gas producers like Cenovus.
Alberta, Canada's oil province, will clean up 5% of its inactive wells by 2023
A regulatory report on Thursday said that the number of inactive gas and oil wells in Alberta, Canada’s largest fossil fuel producing province, dropped 5% from 2022 to 2023, indicating progress in reclamation and decommissioning work. Alberta has 79,000 inactive wells compared to 83,000 in 2012. Inactive wells are no longer producing oil or gas, and must be permanently plugged. The land surrounding them should also be restored. Canada is the fourth largest oil producer in the world and the sixth largest gas producer. Its western provinces have hundreds of thousands active and non-active wells. Some of these wells are orphans.
Canada Environment Minister warns oil companies against retaining emissions data
Canada's Environment Minister warned Wednesday that oil companies who withheld data on emissions would be violating federal law. This was after Alberta's Premier said the province had considered measures to stop a proposed cap. Danielle Smith, Premier of Alberta, said on Tuesday that her government will introduce a motion to the legislature to allow them to challenge Ottawa's proposed cap on oil and gas emissions. Alberta, Canada's largest oil and natural gas province, is also looking into other ways to undermine the cap should it become law. These include restricting access to oil and gas installations in Alberta as well as access to emission data.
Sunshine Oilsands operations halted by Canadian regulator
Sunshine Oilsands has been ordered by a Canadian regulator to suspend all operations in the oil sands area of northern Alberta, including its wells, pipelines and facilities, due to a continuous failure to comply with environmental and safety regulations. The Alberta Energy Regulator's (AER) order of Nov. 14, also required Sunshine Oilsands to post a C$6,091,318 (4.36 million dollars) security deposit in order to offset the estimated costs of abandoning or recovering a well or an facility. Tuesday, the company didn't immediately respond to an inquiry for comment.
