Alberta cuts – Oil & Gas 360

Oil Sands Work May Do What Curtailments Haven’t: Cut Stockpiles

April 30, 2019

From Bloomberg Maintenance at oil-sands mines may achieve what Alberta’s mandatory production curtailments have so far failed to accomplish: drain Western Canada’s storage tanks. Inventories in the region were 34 million barrels the week before last, Richard Kruger, Imperial Oil Ltd.’s chief executive officer, said in an earnings call Friday, citing Genscape data. That figure is little changed from when Alberta’s outgoing government

Wildcatters of the Prairies Get Big Boost From Alberta Oil Cuts

April 2, 2019

From Bloomberg One group of Canadian oil producers is gaining from the output cuts imposed by Alberta: the small explorers. Local wildcatters that pump light crude far from the giant oil-sands mines of northern Alberta are getting a big price boost from the curtailmentsannounced at the start of December, without the headaches. Many of them are exempt from the cuts and

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Alberta Discovers That Playing OPEC Isn’t Easy

March 22, 2019

From Bloomberg Trying to fix the crude market has been hard enough for OPEC. Alberta’s go at it is proving a bigger challenge than the oil-rich Canadian province anticipated. Since mandatory production cuts were announced in December, local heavy crude has gone from too cheap to too expensive. While pipelines remain as full as ever, the extra cost of shipping

Canadian Crude Exports by Rail Uneconomic Amid Output Cuts: Suncor Executive

March 12, 2019

From Reuters Canada’s mandated oil production cuts are preventing Suncor Energy Inc, one of Canada’s biggest oil producers, from sending its heavy crude to the U.S. Gulf Coast by rail, a company official said in an interview on Tuesday. The Canadian oil producer is “interested in rail economics going forward,” but the rise in Canadian heavy crude prices since the

Canada’s Oil Capital Takes a Page From the OPEC Playbook

March 1, 2019

From Bloomberg When prices for Canada’s heavy crude collapsed late last year, Alberta did something quite out of character. The traditionally conservative, free-market-loving province took a page out of OPEC’s handbook and ordered its largest oil producers to throttle back output by about 325,000 barrels a day, the equivalent of almost 9 percent of daily production. The move was an

Oil Companies Find Way to Cash in by Not Pumping in Canada

February 27, 2019

From Bloomberg Alberta oil producers have found a way around production limits imposed on them by the provincial government: buy the right to pump barrels from other companies that don’t need them. The volumes aren’t huge — Husky Energy Inc. is buying rights to produce an additional amount of less than 1,000 barrels a day, Rob Symonds, chief operating officer, said Tuesday

Canadian Heavy Crude Slips With Pipeline Rationing Set to Rise

February 20, 2019

From Bloomberg Heavy Canadian crude prices widened to the biggest discount against New York futures this year as pipeline-operator Enbridge Inc. reported that rationing on its heavy oil lines would increase next month. Western Canadian Select, an oil sands benchmark, traded at $15 a barrel below West Texas Intermediate futures Tuesday, $1.50 wider than on Friday and the biggest discount

Canada’s Oil Cuts Offer Lifeline to Producers but Create New Problems

January 16, 2019

From Reuters The Canadian province of Alberta’s OPEC-style decision to force production cuts is benefiting oil companies with higher prices, but it is also pushing capital elsewhere and threatens to undermine booming crude-by-rail shipments. After Alberta cut 325,000 barrels per day (bpd) starting this month, the discount on Canadian heavy oil compared to benchmark U.S. crude oil shrank to less

Western Canada Oil Prices Hold Up as Alberta Production Cutbacks Kick In

January 3, 2019

From The Canadian Press/Edmonton City News CALGARY — Crude oil prices in Western Canada remain elevated as Alberta’s government-mandated oil production curtailments come into force. Calgary oil brokerage Net Energy says the difference between Western Canadian Select bitumen-blend heavy oil and New York-traded West Texas Intermediate oil prices was about US$12.50 per barrel on Wednesday afternoon, an improvement over the US$17.52 per barrel average

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