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While global oil prices remain near multi-decade lows, the heads of two major Canadian crude producers see reasons for hope that the market will rebound in the months ahead.
Oil is selling for less than $10 across key North American hubs as the global demand shock from coronavirus leaves crude with nowhere to go.
Oil demand is getting hammered at a faster pace than anyone had predicted and landlocked crude production in the U.S., Russia and Canada is most vulnerable, according to Goldman Sachs Group Inc.
Robert Curran, Contributing Editor
Canada re-adjusts to low prices, limited access
The cost to build Justin Trudeau’s governmental oil-pipeline project just got a few billion dollars more expensive.
Every year, the Global Energy Show brings together more than 50,000 industry professionals, government officials and companies to have forward-thinking conversations about creating a prosperous and sustainable future for upcoming generations.
The coronavirus is hampering the Canadian oil industry’s efforts to build relations with crude buyers in Asia.
After big wins shorting U.S. shale, a hedge fund is turning its sights on the beaten-down Canadian oil sector.
Alberta’s government has loosened output limits imposed at the start of 2019 to counter a glut caused by a lack of pipeline capacity and too much oil production. Before the cuts, Western Canadian Select’s discount to WTI has grown as wide as $50 a barrel.
Crude-by-rail capacity in Alberta is expected to grow by 100,000 bpd in December after the provincial government eased production limits for oil transported by train, the Energy Ministry said Wednesday.
Canadian energy firms have quietly outperformed their U.S. counterparts this year and, even after the run, a chorus of positive outlooks on the sector to the north continues.
A week-long rail strike that halted shipments of oil and other goods across Canada, threatening to take a multibillion-dollar bite out of the economy, is over.
Encana’s announcement of the planned U.S. move last month ratcheted up the gloom enveloping the Canadian oil industry and heightened anxieties about losing major domestic companies.
Shell’s future in the country is largely as a natural gas producer and exporter focused on the $30 billion LNG Canada project, though the company is also committed to its local chemicals and retail businesses, Shell Canada head Michael Crothers said in an interview.
The move to Denver was widely anticipated because Suttles, a Texan, relocated his residence there in March 2018, though the company also has a major office in Houston.
Well, it has finally happened. A perfect combination of overly aggressive environmental activism, combined with fumbling by governmental authorities, has incapacitated the Canadian oil industry. (World Oil Editorial)
"A domicile in the United States will expose our Company to increasingly larger pools of investment in U.S. index funds and passively managed accounts, as well as better align us with our U.S. peers," said CEO Doug Suttles.
Larger federal deficits and continued uncertainty for the energy sector are in store for Canada after Prime Minister Justin Trudeau won a second term on Monday, investors and analysts say.
Canadian heavy oil prices have weakened ahead of an anticipated announcement that Alberta will ease production limits in exchange for shipping more crude by rail.
The days when energy stocks and the price of oil moved in lockstep are now few and far between. Oil may go up but stocks still fall, and in Canada it’s the worst divergence on record.