Tuesday, 21 May, 2019


Canada's Alberta province orders drastic oil production cuts to fight price crisis

Canada's Alberta province orders drastic oil production cuts to fight price crisis Canada's Alberta province orders drastic oil production cuts to fight price crisis
Conrad Doyle | 06 December, 2018, 12:04

Notley is meeting with her cabinet to issue the necessary orders to direct oil producers to begin backing off on oil production by 8.7 per cent starting January 1.

Alberta produces 3.7 million barrels a day, but that is 190,000 barrels more than can be shipped.

"A crisis of this magnitude must be reflected in any discussion on 'economic competitiveness.' We trust that the agenda for our upcoming first ministers meeting can be revised to better reflect the need for a substantive discussion on issues of critical importance to the Canadian economy". "The measures Premier Notley announced today will help balance the market in the short term until new rail and pipeline capacity comes on stream late next year and into 2020". "That's going to be a big concern".

During the first year, the ship-fuel standard will make WCS crude about $7/bbl or $8/bbl cheaper relative to West Texas Intermediate futures than it would normally be, IHS Markit's Barrow, V.P. of the oil markets for midstream and downstream energy, said by phone from Houston. The technology used to extract Alberta's oil sands was developed largely through government-backed programs that started around the 1920s and continued for decades.

Oil prices rose on Monday, buoyed by coordinated production cuts - cuts that did not come from Vienna (although that too could occur later this week). The company lives on today as a gas-station chain owned by Suncor. "It has a huge impact on small businesses, any of the service companies working for the oil and gas companies, and the companies themselves".

At least one oil company in Saskatchewan agrees with the provincial government's decision to not make cuts to oil production.

But the Court of Appeal sided with environmentalist and indigenous opponents of the project in an August ruling, leading the federal government to give up fighting and darkening the outlook for investment, oil prices and the Loonie.

Federal Conservative Leader Andrew Scheer said Alberta's dilemma is a direct result of the Trudeau government's failure to get pipelines built while cancelling ones like Northern Gateway.

Right after Alberta Premier Rachel Notley announced the province would be imposing 8.7 per cent oil production cuts across the board (with a 10,000 bpd exemption), Cenovus Energy Inc. president and CEO Alex Pourbaix posted the following media statement on the company's Facebook page. "I think that level of detail in the announcement really provided the market with a lot of certainty in order for it to price in that move very, very quickly". "People are frustrated that the situation with market access has led us to this solution".

Canada's federal government had been attempting for some time to build a new pipeline called "Trans Mountain" that it claimed would enable the nation to export more oil to worldwide markets, instead of sending all of it to the U.S.

Still, the move already appears to be having its intended effect.

Meanwhile, shares in oil producers who had been either benefiting or insulated from the discount prices stayed put or subsided. The government said the reduction will be evaluated monthly.

"Our oil production and market for our product is significantly different than Alberta's".

David MacNaughton says no one in the US government has raised Alberta Premier Rachel Notley's move with him. We may see that they're successful in decreasing the differential more significantly as we adjust to what the impact actually is.

Recommended

loading...
...

India vs Australia: Australia still the favourites, says Ajinkya Rahane India vs Australia: Australia still the favourites, says Ajinkya Rahane There is an overwhelming sense of anticipation about the upcoming Test series between India and Australia. Smith's batting reached another level after succeeding Michael Clarke as captain in 2015.

Chelsea fans slate Alvaro Morata after Wolves defeat Chelsea fans slate Alvaro Morata after Wolves defeat It lifted Wolves up to 12th and was their first win for two months after five defeats in their previous six games. The game was then turned on its head with a rapid Wolves double, starting with Jimenez's equaliser on 59 minutes.

Hootie and the Blowfish will make Colorado stop on new tour Hootie and the Blowfish will make Colorado stop on new tour Hootie & the Blowfish fan club members can access an exclusive pre-sale that began on December 3. The band scored most of its more recognizable hits off 1994's " Cracked Rear View " album.

S. Korea’s Moon still hopes to host Kim this year S. Korea’s Moon still hopes to host Kim this year Also, working on his North Korea diplomacy, the president met with the leaders of the Netherlands and South Afirca. But progress has been slow, with the two countries sparring over the exact meaning of the agreement .

Huawei Technologies CFO arrested in Canada, accused of violating Iran sanctions Huawei Technologies CFO arrested in Canada, accused of violating Iran sanctions Meng's arrest is related to alleged violations of United States sanctions, according to Reuters news agency. Huawei overtook Apple earlier this year to move into the No. 2 spot, according to Business Insider .

US Marine planes crash in Japan US Marine planes crash in Japan The planes involved are a KC-130 and an F/A 18, carrying a total of seven personnel, USA media quoted officials as saying. A US Marine Corps F-18 fighter takes off from the North Atlantic Treaty Organisation military base in Aviano, Italy.

Facebook's secret documents seized by Parliament are published by MPs Facebook's secret documents seized by Parliament are published by MPs When Twitter launched six-second video clip platform Vine, Zuckerberg approved revoking their access to Facebook's API. A subsequent email suggests users wouldn't need to be prompted to give permission for this feature to be activated.

Robert Kraft 'flattered' other teams are interested in Josh McDaniels Robert Kraft 'flattered' other teams are interested in Josh McDaniels But our focus now is on finishing the season strong and then hiring the very best coach that we can for the team". So we're looking forward to that. " If that's in the cards for me , that's great.

Minnesota Vikings offensive and defensive MVPs: Week 13 vs Patriots Minnesota Vikings offensive and defensive MVPs: Week 13 vs Patriots They had 283 yards in a November 4 victory over Detroit, a season-low 268 yards against the Bears and 296 against the Patriots. The receiver/return man touched the ball on offense 43 times in 2014 and only four times in 2016.

Global magazine removes hateful article on Priyanka, apologizes Global  magazine removes hateful article on Priyanka, apologizes Sophie posted on her Twitter account. "Touched by your kind words and blessings", Priyanka wrote on Twitter on Wednesday. The earlier version of the article read, "Priyanka: She is a modern-day scam artist, in my opinion".

Highlights of bills proposed by Wisconsin Republicans Highlights of bills proposed by Wisconsin Republicans Another element of the bill would make it more hard for Evers to alter some GOP-backed laws, including Wisconsin's voter ID law. The legislation would also require legislative approval to withdraw from lawsuits, taking that away from the attorney general.

Orban's Hungary drives out university founded by George Soros Orban's Hungary drives out university founded by George Soros However, CEU will keep its Budapest campus and those students who have enrolled there will be able to complete their studies. Ignatieff said all new students will attend classes in Vienna , but he hopes to maintain a Budapest campus.

It looks like Apple's next-generation AirPods will launch in 2019 It looks like Apple's next-generation AirPods will launch in 2019 The AirPods 2 will also likely come with noise cancellation technology for a more distraction-free listening experience. As it is, the current gen AirPods went in for some criticism for its looks when first launched back in 2016.

Microsoft to kill off its Edge browser Microsoft to kill off its Edge browser Being a part of the Fast ring means that you get updates approximately every two weeks, which can be extremely buggy. While that may be the case, we don't think that this new browser will "replace" Edge , we think it is Edge.

Body of tourist Carla Stefaniak identified, suspect detained Body of tourist Carla Stefaniak identified, suspect detained An autopsy revealed that the victim suffered a blunt force wound to the head and lacerations on the neck and arms, he said. She later communicated with a friend via Facetime and said that she wanted to go out that night but was too exhausted .