Jul. 12, 2014, 8:25 AM
- The problem facing Canada isn't the Keystone pipeline or Pres. Obama or environmentalists - it's the oil sands, and they've got to be cleaned up and the head-in-the-sand denials chased way or the country will be stuck with a "baby seal hunt" image, Diane Francis writes in the Financial Post.
- The columnist thinks she knows the right person to lead the clean-up: Jeff Immelt - "an American leader with stature in Washington, on Wall Street, in the oil patch and in Silicon Valley" - who said this week that GE will help companies clean up the oil sands.
- The only way to stop the environmental excuses, Immelt believes, is for the industry to collaborate and voluntarily establish lower emissions targets that would make the oil sands competitive with any other fuel source in the world - without such a promise to provide cleaner energy, "all bets are off."
- Some related companies: XOM, IMO, SU, RDS.A, RDS.B. ENB, TRP, CNQ, CVE, CVX, COP, BP, KMP, WPZ, TOT, STO, CEO, SNP, PTR, HUSKF, ATHOF, COSWF.
Jul. 11, 2014, 6:17 PM
- A 60-year-old Enbridge (ENB) pipeline beneath the environmentally sensitive shipping channel through the Straits of Mackinac would cause disastrous consequences for the Great Lakes if it ruptured, according to a new report.
- The Straits' oscillating currents are part of what makes it such a harmful place for a pipeline breach, the report says; as the current changes direction every few days, contaminants could be carried back and forth across the straits several times.
- ENB has said its Line 5 pipeline is in good shape and not in danger of rupturing; in December, ENB increased the amount of oil passing through it to 540K bbl/day.
Jul. 10, 2014, 11:56 AM
- Enbridge (ENB -0.5%) CEO Al Monaco says the recent ruling by Canada's Supreme Court recognizing an aboriginal title claim in British Columbia will not impact the proposed Northern Gateway pipeline.
- Monaco says the decision confirms ENB has been taking the right approach all along by reaching out to communities in the pipeline right of way and offering economic participation; so far, 26 First Nations have signed up as equity owners.
- Monaco also says there is no interest in changing the Northern Gateway end point to Prince Rupert from Kitimat on the B.C. coast as a way to speed construction.
Jul. 10, 2014, 9:56 AM
- Enbridge (ENB -0.5%) says it is in talks with Alaska about building a pipeline to ship natural gas from the North Slope, describing the project as a potential alternative to an Alaskan pipeline project backed by rival TransCanada (TRP -0.6%).
- The proposed $7.7B project would carry ~500M cf/day of gas from Prudhoe Bay to Point MacKenzie, with a spur line to Fairbanks, and aim to start up by late 2020; it would mostly serve to offset declining gas production from the Cook Inlet.
- Alaska is weighing the project as a backup if a competing proposal from TRP fails to move ahead.
Jul. 9, 2014, 11:29 AM
- Cenovus Energy (CVE -0.8%) CEO Brian Ferguson raps Liberal Party leader Justin Trudeau and NDP leader Thomas Mulcair for opposing the proposed Northern Gateway (ENB) pipeline for "political gain."
- "What they are saying [about] the most scrutinized project that we ever had the National Energy Board look at [is that] they would chose to ignore this very stringent regulatory process for what I think is their own political gain,” Ferguson says.
- Ferguson, whose company is one of Northern Gateway's funding partners, says shippers remain supportive and will follow up with more specific commitments in the future.
Jul. 3, 2014, 10:27 AM
- Enterprise Products Partners (EPD -0.7%) and Enbridge (ENB -0.1%) say they have completed the 512-mile expansion of its Seaway oil pipeline, more than doubling the system’s capacity to 850K bbl/day to move oil south from the delivery point for West Texas futures in Cushing, Okla.
- The new Seaway Loop Pipeline connects to the Jones Creek storage terminal near Freeport, Tex., which is connected to EPD’s ECHO crude storage facility in Houston; construction of a 100-mile pipeline from ECHO to Beaumont and Port Arthur is expected to be completed this month.
Jun. 26, 2014, 5:24 PM
- Canada's Supreme Court today granted exclusive property rights over a tract of land to a First Nations group in British Columbia, in a landmark ruling that will raise new questions about prospects for the contentious Northern Gateway pipeline and other resource projects.
- Overturning an earlier appeals court decision, the Court ruled the Tsilhqot'in Nation has the right to control a 1,087 sq. mile area in central B.C., marking the first time a Canadian court granted such title to an aboriginal group.
- The pipeline route in Enbridge's (ENB) Northern Gateway project does not cross the land that was the subject of the ruling, but a coastal aboriginal group believes the Court's language on reconsideration of approved projects could enable it to bring the project to a halt.
- Earlier: Taseko's New Prosperity project located where aboriginal title does not exist.
Jun. 25, 2014, 6:12 PM
- Enbridge Energy Partners (EEP) says North Dakota's Public Service Commission has approved its $2.6B Sandpiper pipeline project.
- The 612-mile pipeline will carry 225K bbl/day of oil and will allow oil to be shipped to Canada, and the southern and eastern U.S.
- Sandpiper is a joint venture between EEP and an indirect subsidiary of Marathon Petroleum (MPC), which will own a ~27% interest when the pipeline is expected to be placed into service in early 2016.
Jun. 24, 2014, 7:17 PM
- North Dakota's governor wants to double the state's pipeline capacity over the next two years as part of a plan to curb wasteful gas flaring and reduce the reliance of Bakken producers on rail and trucks to get their oil to market.
- Oil production in North Dakota has more than tripled in the past decade to 1M boe/day, but the state's pipeline capacity is only ~780K boe/day; Gov. Dalrymple says the state should boost capacity to 1.4M boe/day by 2016.
- The governor's overtures were timed with Enterprise Products Partners' (EPD) plans to build a first-of-its-kind 1,200-mile pipeline from North Dakota's Bakken oil fields to Cushing, Okla.
- ONEOK (OKE), Enbridge (ENB), MDU Resources (MDU) and other pipeline operators have been working to build natural gas networks in the state, but they have been constrained by cold weather and right-of-way issues.
- While environmental groups worry about flaring, many residents see traffic as a reason to build pipe; a local officials says citizens "are less worried about global warming then they are about the 1,100 trucks that go by their mailbox every day."
Jun. 18, 2014, 7:07 PM
- Canada has the resources, technology, access to capital, and now a potential route to market to become an energy superpower after the federal government's approval of Enbridge's (ENB) Northern Gateway pipeline - but does it have the will?
- Investors largely shrugged off the news today, recognizing ENB must address many concerns posed by regulators, the British Columbia government and aboriginal groups before it is allowed to begin construction.
- Environmental groups and aboriginals have vowed to go to the courts to stop Gateway from ever being built, and there is stiff opposition in the province; PM Harper's Conservatives hold 21 of its 36 seats in the House of Commons via B.C., which also gets six new seats in Vancouver's suburbs and elsewhere for next year's election.
- "The Conservatives have a significant fraction of the parliamentary coalition at risk potentially," says Univ. of British Columbia political scientist Richard Johnston.
Jun. 18, 2014, 5:40 PM
- Enbridge (ENB) and Enbridge Energy Partners say $7.5B is the final cost estimate for their Line 3 Replacement Program for all segments between Hardisty, Alberta and Superior, Wis.; the international joint tariff surcharge will be adjusted to reflect 75% of the increase in the incremental investment required.
- ENB also says it will issue 7.86M treasury common shares on a bought deal basis for gross proceeds of ~C$400M, to support the additional funding required for its capital program.
- Separately, ENB says CFO Richard Bird plans to retire by the end of 2014.
Jun. 17, 2014, 6:56 PM
- Enbridge (ENB) gained approval for its Northern Gateway pipeline, but now the real work begins, since it first must nail down oil shipping contracts that meet the 200-plus conditions attached to the project.
- ENB needs firm transportation contracts covering at least 60% of the pipeline’s capacity prior to starting construction, and some analysts say the many competing export projects and the sharp growth of oil shipments by rail could make shoring up commercial support for the pipeline difficult, and even delay construction into next decade.
- If built, Northern Gateway would serve as an important link between the Alberta oil sands deposits and energy-thirsty Asian markets, but If TransCanada’s (TRP) Keystone XL and Energy East projects are approved, “Gateway gets shelved for a very, very long time, because [ENB] won’t be able to fill it," says one industry analyst.
- Suncor (SU), Cenovus (CVE), Cnooc (CEO), Total (TOT) and others have signed so-called precedent agreements to ship oil on the pipeline, but legal experts say those agreements aren’t binding, giving producers wiggle room to choose alternatives.
Jun. 17, 2014, 5:15 PM
- The Canadian government approves Enbridge’s (ENB) Northern Gateway pipeline, Bloomberg reports, which would eliminate the final major regulatory obstacle for the project that would move Alberta oil to the Pacific coast for shipment to Asia.
- Approval of the C$6.5B project is said to be subject to ENB satisfying the 209 conditions placed on the proposal by a regulatory review panel in December.
- ENB +2.3% AH.
Jun. 11, 2014, 6:17 PM
- Notwithstanding the optimism of Alberta's energy minister, who expects Canada’s government to approve the Northern Gateway (ENB) pipeline this month, Natural Resources Minister Greg Rickford says the Canadian government could delay a decision.
- "This is an extensive report with 209 conditions, and the government obviously has the clear option of taking that on its face, or other options that would or could include delays,” Rickford says.
- The government was expected to decide by June 17 on the proposal to build the 525K bbl/day pipeline which would carry crude from Alberta’s oil sands to a deepwater port in British Columbia.
Jun. 10, 2014, 7:07 PM
- Privately-held Pacific Future Energy Corp. says it is in the early stages of planning a $10B oil refinery on Canada's west coast that it claims would be "the world’s greenest refinery” and built in full partnership with British Columbia's First Nations, many of whom are strongly opposed to proposals to ship crude to the west coast for export.
- Canada's government is poised to decide whether to approve Enbridge's (ENB) Northern Gateway pipeline project, which would require huge tankers full of heavy oil to navigate the rough waters of the Douglas Channel on their way out into the Pacific.
- The Pacific Future proposal would mean refined products, rather than heavy oil, would be shipped on tankers to Asia, making any potential spill much less environmentally damaging.
Jun. 10, 2014, 10:59 AM
- Shipments of crude oil by rail from western Canada are expected to more than triple in the next two years to ~700K bbl/day in 2016 from 200K in late 2013 amid a severe shortage in pipeline capacity, according to the annual forecast from the Canadian Association of Petroleum Producers.
- Rail transportation is widely regarded as more dangerous than pipelines, but oil trains can be ramped up fast in response to market demand because they are not as regulated as pipelines.
- Oil supplies in western Canada from the oil sands and from new shale plays continue to increase, while four major pipeline projects - Keystone XL (TRP), the TransMountain expansion (KMI, KMP), Northern Gateway (ENB) and Energy East - await regulatory approval and construction.
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