After days of discussions with an oil and gas industry association, Environment Canada has confirmed a substantial rise in greenhouse gas pollution from the oilsands sector in 2009, along with data that casts doubts on […]
Oil Sands Mining News
One way or another — by rail or ship or a network of pipelines — Canada will export oil from its vast northern oil sands projects to the United States and other markets.
The magic number for real interest rates is 2 percent. That's when you can earn more than 2 percent on a U.S. Treasury bill after discounting for inflation. Our research has shown that commodities tend to perform well when rates fall below 2 percent.
I suspect that the recent party-trick by the non-expert Chimp who predicted in December 2010 that the 10-Year Treasury (then 3.5%) would head down towards 3% by April 2011, may demonstrate that there might be […]
Alberta's oilsands could deliver $67.5 billion a year into provincial government coffers by 2044, says a new report from the Canadian Energy Research Institute released Monday
Will the US oilpatch get flooded with Canadian juniors looking to build and sell production to the new Canadian energy income trusts? Trusts are now allowed in Canada again – but with foreign assets.
The Toronto Sun reports employees from Shell Canada's Muskeg River and Jackpine mines near Fort MacKay were evacuated late Thursday night as wildfires continue to rage in that part of Alberta, Canada. Despite cooler weather and scattered showers on Friday 290 forest firefighters from Alberta, B.C. and the Northwest Territories are still fighting out of control blazes in the Richardson area 60 km north of Fort McMurray where 354,000 hectares have burned. Imperial Oil and Shell Canada say they're working with the government and other oil sands operators to monitor the fire and smoke conditions in the area and Syncrude Canada says all of its staff at its operations in that part of the province are still continuing to work.
Laricina Energy announced on Wednesday it intends to raise between $250m and $400m by selling common shares at $40 to $45 each in a private placement. Laricina was started by executives of Deer Creek Energy after it was sold to French oil giant Total in 2005 for $1.67bn. Canada Pension Plan acquired 17% of the privately-held oil sands developer for $250m last year. This round of fund raising is expected to push back a possible public listing of Laricina to 2012.
Daily Oil Bulletin reports Canada's total proved oil and liquids reserves continued to climb in 2010, rising to just under 22bn barrels, up 6.6% from year end 2009. About 77% of the booked reserves came from Alberta's oil sands. The news comes as Canada’s oil sands are coming under increased scrutiny: the Vancouver Sun reported on Monday that the federal government deliberately excluded data indicating a 20% increase in annual pollution from the oil sands industry in a report to the UN. Last week during Congressional hearings it was revealed that the oils sands are poised to become the number one source of crude for the US.
The federal government has acknowledged that it deliberately excluded data indicating a 20% increase in annual pollution from Canada’s oilsands industry in 2009 from a recent 567-page report on climate change that it was required to submit to the United Nations.
An editorial in last Wednessday's National Post ("Ottawa isn't the oil sands' enemy") left readers with an inaccurate portrayal of the Alberta government's role in the oil sands.
A Conference Board of Canada report says high energy and metals prices "are prompting resource companies to invest billions in iron ore projects, nickel processing and offshore oil developments" in Newfoundland and Labrador, generating the largest growth in real GDP this year of all the Canadian provinces. The board's Provincial Outlook - Spring 2011 report issued Wednesday also forecasts that Saskatchewan "will benefit from tax breaks and a hot mining industry."
According to the report in the newspaper senior bureaucrats have told the federal government that the controversial pipeline that would stretch for 1,170km from Brudenheim in Alberta to a new marine terminal at Kitimat in northern British Columbia, offers export capacity that the industry does not need. Last week Stephen Wuori, Enbridge’s president for Liquids Pipelines, vigorously defended the project saying that given that currently 99% of Canada’s $50bn/year exports went to the US, the industry needs to diversify and supply the energy-hungry economies of the Pacific Rim.
The Financial Post reports a shortage of Canadian synthetic crude, the result of outages at oil sands operations, has resulted in premium prices for Canadian varieties in May of as much as US$15 a barrel over the U.S. benchmark, West Texas Intermediate, energy investment dealer Peters & Co. said in a note to clients. The energy investment dealer said the hefty premium, primarily for Edmonton Par, is a significant departure from the discounts of about US$12 a barrel experienced in February. Prices were depressed at the time because of pipeline bottlenecks in the U.S.
Columnist Bill Mann writes in MarketWatch on Thursday, a big battle is shaping up over environmental regulation of Canada’s oil sands, the second-largest oil deposits in the world. And, surprisingly, it’s Conservatives against Conservatives.
Green Century Capital Management filed a shareholder resolution with ExxonMobil to disclose information about its investments in Canadian oil sands, Triple Pundit reported on Thursday. By the end of last year, ExxonMobil’s total proved reserves in the oil sands were over 2.78bn barrels — just over 11% of the company’s total proved reserves, according to a press release by Green Century. Canada’s oil sands which is expected to become the primary source of crude to the US have attracted intense scrutiny in recent days as the US Congress heard submissions about the extension of the Keystone XL pipeline from Alberta to Texas.
Devon Energy Corp. DVN +0.55% Chief Executive John Richels said Wednesday that the oil and gas producer has begun injecting steam into heavy oil wells at the second phase of its Jackfish oil field in Alberta, Canada and expects full production there to begin in 16 to 18 months. The project's first phase is producing 35,000 barrels of oil a day, and additional phases are expected to have similar output, he said.
Reuters reports: Rep. Henry Waxman's attempts to find out if a proposed controversial Canada-to-U.S. Gulf Coast oil sands pipeline will benefit Koch Industries appears to have hit a dead end. Representatives for billionaire brothers and oil magnates Charles and David Koch — major donors to GOP elections and influential conservative organizations — are evidently stonewalling the California Democrat about their possible financial interest in seeing the permit approved for TransCanada's proposed $7 billion Keystone XL pipeline.
According to The Globe & Mail, Christophe de Margerie, the CEO of French energy giant Total on a tour of Canada’s oil sands with members of the company’s international advisory board this week, believes the resource is playing an increasingly important role in setting the global price of crude. Through a string of deals, kicked off by the $1.67bn acquisition of Deer Creek in 2005 and topped by the $1.7bn partnership with Suncor announced late last year, Total has become one of the largest oil sands players. The company plans to spend $20bn in the oil sands by 2020, but no further acquisition are planned reports the Calgary Herald.
According to testimony before the US Congress concerning the construction of the $7bn Keystone XL pipeline extension from Alberta to Texas, crude produced by Canada’s oil sands, which represent just over half the country’s total production, has already surpassed the total volume of imports from the US number two supplier Mexico. Since 2000 Canada’s oil sands output has more than doubled: from 600,000 barrels to about 1.5m barrels per day in 2010. Canada supplies 2m barrels per day or 22% of US crude oil imports, up from 15% a decade earlier. The sands’ 175bn barrels of recoverable oil places Canadian oil reserves third in the world behind Saudi Arabia and Venezuela.
To hear the mainstream media tell it, the commodities bubble has burst. Commodities are plunging across the board in response to the latest U.S. data, most of which seems to suggest that the American economic recovery is waning. Oil, which closed at $100 a barrel yesterday, was particularly hard hit, which is why so many suggest the commodities bubble has met its end.
For Environment Minister Peter Kent, it only gets harder from here. The minister spent his first hours on the job in the new cabinet receiving an international award for Ottawa’s conservation efforts. Now, he has to take on the oilsands. National parks are the shiny, bright side of Canada’s environmental policy, long recognized for preserving and protecting fragile lands and waters, and reintroducing endangered species. But Kent is also tasked with cutting Canada’s greenhouse-gas emissions by 17 per cent from 2005 levels by 2020 — with one hand tied behind his back.
At first glance, you might think this is a stretch. How can snowpack levels in the West possibly have anything to do with the price of natural gas nationally? It turns out that Rocky Mountain snowfall has a huge impact… Resulting water runoff from the thawing period changes the capacity of hydropower on the West Coast… and that has a huge impact on natural gas demand. Plus it varies greatly from year to year.
Has oil moved into backwardation yet? What does corn’s roll yield look like? How do you know when it’s time to buy — or sell? Each week, we investigate the futures curves of the U.S.’ most important commodities, helping investors better understand the market and seize buy-and-sell opportunities as soon as they arise.
Reforms by Guinea's first freely elected government are needed to clean up a mining sector in disarray after decades of political turmoil, but they risk scaring off investors if they go too far too fast. The world's top bauxite supplier and a new frontier for iron ore, Guinea is rewriting its mining code, probing joint venture deals, and has dealt tough blows to major firms since the election of President Alpha Conde last November.