WorldOil Biden prepares to tackle fossil fuels in the U.S. and abroad Joe Biden's cabinet picks, and his interest in working with China to stage elections in Venezuela, will make 2021 a transformative year for fossil fuels. Wall Street favor shifting from U.S. shale to Canadian oil sands Steady output from their mines means that oil sands producers are able to keep revenue coming for decades without too much investment, while the short life span of shale wells forces U.S. explorers to constantly burn cash just to keep up production. Alberta locks down as province’s economy shrinks by 8.1% this year The province’s economy is expected to contract 8.1% this year, the most on record, because of virus restrictions and the downturn in oil prices. Home of the world’s third-largest crude reserves, outbreaks have happened at at least seven oil-sands sites in the north of the province. Enbridge wins approval for Alberta oil sands pipeline to U.S. Midwest Minnesota approved the stormwater pollution plan for Enbridge’s Line 3 pipeline replacement and expansion, the project’s last pending permit, the company said. Construction is expected to take six to nine months on a line that will add 370,000 barrels a day of capacity. Tourmaline to buy two Canadian rivals, sell some land rights Tourmaline Oil Corp. is buying two rivals in the Canadian oil and gas industry’s latest move to weather its worst downturn in a generation. Covid-19 may finish Keystone XL for good, with a little help from Biden Joe Biden has pledged to rescind a key permit granted by Trump for the pipeline, designed to take 830,000 barrels of crude a day from Alberta to Nebraska. Keystone XL has been on its death bed before, only to come back. But this time the politics are shifting at a moment when demand for oil is weak and other pipelines are moving toward completion more quickly. Cenovus hedges against a possible Biden win with Husky Energy deal Cenovus Energy Inc. is getting more than just a rival Canadian oil producer with its acquisition of Husky Energy Inc. It’s also shoring up its defenses against an anti-oil sands movement that could get a boost if Joe Biden is elected as the next president of the U.S. Canada’s Cenovus Energy to buy Husky Energy in all-stock sale The newly combined company is expected to break even in 2021 at a West Texas Intermediate crude price of US$36 a barrel. It will continue to operate as Cenovus Energy with its headquarters remaining in Calgary. Lower Mexican output in 2021 will raise Canadian heavy oil prices Oil sands producers will benefit from less output of competing crude from Latin America as Pemex expects to cut exports while Venezuelan supplies remain off limits due to U.S. sanctions. Canada’s oil majors feel the pain as energy stocks take a beating “The recent near-death experience for some heavy oil producers is a good reminder that investors should focus on companies with strong balance sheets, ample liquidity, robust cost structures, and low sustaining capital requirements,” BMO Capital Markets analyst Randy Ollenberger said in a report.