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Canada’s independent oil producers may face months of depressed earnings and weak share...

  • Monday, January 14, 6:14 PM ET
    Canada’s independent oil producers may face months of depressed earnings and weak share prices as they jockey for space on over-full oil pipelines, analysts say. "The shortfall in takeaway capacity is absolutely going to weigh on realized prices for the Canadian producers over the near term on... especially heavy oil, which is at a pretty substantial discount to WTI right now," Macquarie says.
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This news story has 13 comments:

  •  
    And Alberta can thank Obama and his supporters for part of this mess.
    14 Jan, 06:28 PM Reply Like
  •  
    Well John, the XL wouldn't be flowing now anyway and the Canadians have declined to approve the Northern Gateway. Maybe if the Canadians had a few refineries they would have somewhere to go with the stuff. The Seaway now flows from Cushing to the gulf refineries but it's already full. The Bakken producers are using rail to ship to the Eastern (light crude) refineries, not an option for the heavy tar. You can thank the Canadians for some not so hot planning and the surprise advent of the Bakken for this mess. Sometimes thing just don't go according to plan. The question is with all this crude sloshing around why does WTI sell in the 90's? It should be a lot lower, we're drowning in the stuff. Also, how does Brent not collapse? The Saudi's are cutting because they don't have enough orders, Nigeria had 21 unsold tankers full last month. Pricing looks increasingly suspect.
    14 Jan, 09:22 PM Reply Like
  •  
    " Pricing looks increasingly suspect."

    'Investors' keep buying USO....

    "It has to go up! How can it possibly go down? It's a sure thing!"
    15 Jan, 07:23 AM Reply Like
  •  
    The environmentalists demonize Canada's "heavy" oil while we import 900,000 barrels a day of the same stuff from Mr. Chavez in Venezuela. Insane.
    14 Jan, 06:42 PM Reply Like
  •  
    I seriously believe that money from Venezuela is supporting these "environmentalists".
    14 Jan, 06:51 PM Reply Like
  •  
    Well, I hate to say it but I don't mind the weakness right now. I DRIP several of them and have bought at each pullback on the open market. At these dividend rates I don't mind getting cheap oil. They won't stay down for long and I intend to own as much of them as I can afford.
    14 Jan, 06:45 PM Reply Like
  •  
    This does not apply to Husky, however, which also produces oil in the North Atlantic and the South China Sea.
    14 Jan, 06:50 PM Reply Like
  •  
    The Western Canadian Select / WTI differential is just too large to exist for long. Several factors are working to increase export capacity rapidly. Rail shipments are increasing dramatically as we speak. In addition, Kinder Morgan has increased its expansion plans from the original 750k bpd to 890k bpd. If that doesn't say confidence, I don't know what is.

    Buying cheap Alberta based oil companies at these prices is a steal.
    14 Jan, 07:27 PM Reply Like
  •  
    but prices for heavy rose today and SU was up:

    http://reut.rs/VGGVSy

    could be short term...or, it could be back to reality as seaway expansion comes online allowing more heavy to find its way to refiners on the gulf coast:

    http://seekingalpha.co...
    14 Jan, 07:59 PM Reply Like
  •  
    The comment: "The environmentalists demonize Canada's "heavy" oil while we import 900,000 barrels a day of the same (dirty) stuff from Mr. Chavez in Venezuela" and the Saudi misogynists. "Insane." Maybe so; maybe not so.
    Yes and there's a method in their mutual madness. Canada's much loved environmental guru, David Suzuki, has admitted on Canadian T.V. that his gang accepts funding from these sources so he can condemn our oil! And guess what? On July 14, 2010, Warren Buffet met Barrak Obama at the White House "privately". Guess what good, reliable, sources tell us about the consequences of that tet-a-tet? Buffet gets an Obama block on the XL pipeline so his Burlington Northern RR can carry the oil, Obama gets Buffet tax the rich support and Suzuki gets a further pat on the back to create a reason to block the XL project. Yes, it all fits and makes sense now. What to do? Buy Bill Ackman's CP Rail; they carry Bakken and Alberta oil in their tankers too!
    Quebec and Ontario refineries are soon ready to displace Saudi oil for good Canadian crude. Don't play the Canucks as too dumb to know how to respond. Up here we speak softly and run efficient trains. We listen to Suzuki, treat him kindly, and then do the correct thing, quietly, with little fanfare. I say buy cheap bakken/Alberta oil stocks and CP Rail; be patient. It'll pay off!
    14 Jan, 11:44 PM Reply Like
  •  
    Canadians should sell to china or india if the eco-weenies in usa are creating trouble...The obama thug regime 's interference in the XL pipeline is harming canadian profitability.
    15 Jan, 07:00 AM Reply Like
  •  
    They don't have a pipe to the coast.
    15 Jan, 09:32 PM Reply Like
  •  
    For anyone who follows http://bit.ly/UOcfuI
    15 Jan, 03:56 PM Reply Like
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