May. 2, 2014, 3:28 PM
- Crude oil imports to eastern Canada already have been cut by more than one third from a year ago, and Valero Energy (VLO) and Suncor (SU) are poised to use only North American crude in eastern Canada by 2015, further displacing overseas imports and possibly helping to bring domestic prices to an equilibrium with international levels.
- SU’s Montreal refinery will reach that point in 2015 and VLO’s Quebec City plant by the end of this year; Enbridge (ENB) plans to start a pipeline late this year allowing oil to flow to Montreal from fields in North Dakota and Alberta, further reducing higher-priced supplies from Europe and Africa.
- “Within a very short period of time, there won’t be any barrels coming into eastern Canada from overseas," says John Auers of industry consultant Tuner, Mason & Co.
Apr. 23, 2014, 5:43 PM
Apr. 16, 2014, 10:48 AM
- Alberta looks likely to implement energy efficiency measures when it revamps its climate-change policy to win support for its oil sector, an about-face on the former premier’s vow that the province wouldn’t enact new rules until the U.S. did.
- The province plans to have new regulations on emissions in the near future and may include a higher carbon price, Alberta's environment minister says.
- The struggle by Alberta’s oil producers for access to new markets, as reflected in U.S. delays in approving the Keystone XL (TRP) pipeline, comes amid opposition to oil sands bitumen because of its higher carbon intensity and concerns around air and water pollution.
- Relevant companies include ECA, ENB, EEP, STO, XOM, IMO, SU, CVE, PGH, BP, CNQ, BTE, DVN, IVAN, AAV, RDS.A, RDS.B, PTR, ATHOF
Apr. 14, 2014, 4:58 PM
- As Enbridge (ENB) reels from Kitimat, B.C., residents’ rejection of the Northern Gateway pipeline in a non-binding plebiscite during the weekend, a First Nations-backed consortium seeks to build an alternative pipeline linking Alberta’s oil sands to the British Columbia coast.
- Eagle Spirit Energy says its proposed pipeline connected to an upgrader in Alberta or B.C. would transport synthetic crude rather than bitumen, and minimize impacts on water, wildlife and neighboring communities.
Apr. 14, 2014, 8:05 AM
- Enbridge (ENB) fails to win support from the residents of Kitimat, in British Columbia, for the Northern Gateway pipeline, a blow to the company's efforts to expedite the flow of crude from Canada's landlocked oil sands to Asian markets.
- Residents in the Pacific port town, the planned western terminus of Northern Gateway, voted 58% against the proposed pipeline in a non-binding plebiscite during the weekend.
- Canadian regulators in December approved the project, subject to 209 conditions, and the government is expected to decide in mid-June on the C$7.9B project.
Apr. 10, 2014, 11:55 AM
- The British Columbia government is moving to bring First Nations on board its hoped-for boom in liquefied natural gas, as two groups sign revenue-sharing agreements with the government related to the development of Nexen's (CEO) proposed Aurora LNG export terminal on their traditional territories.
- The First Nations’ leaders say the deal indicates willingness among at least some aboriginal groups to embrace some forms of resource development, but most have opposed Enbridge's (ENB) proposed Northern Gateway pipeline project that would move Alberta oil products to B.C.’s coast for export to Asia.
Apr. 9, 2014, 2:56 PM
- Canada’s federal government isn’t doing enough to build support for Enbridge’s (ENB +0.6%) proposed Northern Gateway pipeline to ship crude from the oil sands to the country’s Pacific coast, Alberta Finance Minister Doug Horner says.
- Producers such as Shell and Total are counting on projects such as Northern Gateway and Keystone XL to ease a transportation bottleneck that has suppressed the price of Canada’s heavy crude and cost the economy C$50M/day; the federal government should make it clear the pipeline is of national economic importance, Horner says.
Apr. 4, 2014, 5:15 PM
- Enbridge (ENB) has obtained a license to re-export Canadian oil from the U.S., becoming the first company to publicly confirm a move that could fuel debate over U.S. trade policy and oil sands pipelines.
- ENB says its Tidal Energy subsidiary has a license to export "limited quantities" of Canadian-origin oil from a U.S. port, confirming speculation about such shipments; first cargoes are expected to sail for Europe later this month.
- Critics of the Keystone XL pipeline (TRP) have contended that allowing re-exports of Canadian oil from the U.S. undercuts Pres. Obama's pledge to protect the climate.
Mar. 19, 2014, 6:18 PM
- Greg Rickford, appointed today as Canada's new Natural Resources Minister after Joe Oliver was moved from the post to become Finance Minister following Jim Flaherty's resignation, takes charge at a "critical time for Canada's natural resource sector.
- Rickford will have a lot on his plate: accelerated extraction of Alberta’s oil sands and liquefied natural gas exports on the west coast, contentious pipeline issues from Enbridge’s (ENB) Northern Gateway to TransCanada’s (TRP) Keystone XL, streamlining the mining permitting process, and pushing forward with development of the Ring of Fire in Ontario.
- His experience in aboriginal affairs could prove crucial as Canada's indigenous people demand greater say on how energy and mining projects proceed.
Mar. 18, 2014, 5:32 PM
- Enterprise Products Partners (EPD) says it plans to start its Seaway pipeline expansion as early as May, more than doubling the system’s capacity to move oil from the delivery point for West Texas crude in Cushing, Okla., to Gulf coast refineries.
- EPD, which operates Seaway and co-owns it with Enbridge (ENB), had said it would start late in Q2.
- EPD is looping the existing line with a parallel pipeline that will increase capacity to the Houston area to 850K bbl/day; EPD and ENB reversed the pipeline in May 2012 and expanded it to the current capacity of 400K bbl/day in Jan. 2013.
- A further loosening of the crude storage bottleneck at Cushing as the Seaway expansion is brought online could push WTI prices closer to Brent prices.
- ETFs: USO, OIL, UCO, SCO, DTO, DBO, BNO, CRUD, USL, UWTI, DNO, DWTI, SZO, OLO, OLEM, TWTI
Mar. 10, 2014, 8:38 AM
- U.S. Geothermal (HTM) says its Oregon USG Holdings subsidiary has made its first distribution of profits from the Neal Hot Springs geothermal project.
- HTM's share of this first distribution is $4.6M out of a total distribution to the partners of $7.7M, which represents profits generated from the project since initial operation began in Nov. 2012.
- Oregon USG is owned 60% by HTM and 40% by Enbridge (ENB).
Mar. 6, 2014, 5:54 PM
- Enbridge (ENB) wins approval of its controversial plan to reverse and expand Line 9, allowing for more shipments of western crude oil to refineries in Quebec.
- The approval from Canada's National Energy Board is subject to 30 conditions, such as requirements that ENB take steps to ensure the integrity of the pipeline and guard against spills.
- The reversal of the 397-mile section is part of ENB’s effort to provide refineries in eastern Canada with lower-priced North American crude from Alberta’s oil sands and North Dakota’s Bakken.
- The line from Westover, Ontario, to Montreal is capable of sending ~240K bbl/day of overseas oil west; included in the approval for the reversal is permission to expand capacity to 300K.
Mar. 5, 2014, 4:46 PM
- Enbridge’s (ENB) $7B plan to replace its Line 3 oil pipeline so it can pump more crude through it "will face increased public, regulatory and political scrutiny,” potentially leading to higher costs and delays, Moody's says.
- The project - the largest in ENB's history - is less risky than Keystone XL and does not affect the credit ratings of ENB or its U.S. affiliate, Energy Energy Partners (EEP), but it carries more execution risk than other company projects.
- A flashpoint is whether the replacement will require a Keystone-style presidential permit; ENB says it doesn't because the segment at the U.S.-Canada border will narrow to a 34-inch pipeline that's allowed under an existing presidential permit, while opponents decry "accounting trickery."
Mar. 4, 2014, 4:55 PM
- Energy Transfer Partners (ETP) is awarded $319M by a Texas jury that found Enterprise Products Partners (EPD) wrongfully dropped it from plans to construct a crude oil pipeline from Cushing, Okla. to the Gulf coast.
- EPD’s total liability could be as much as $595M if ETP pursues a disgorgement claim against it.
- Enbridge (ENB), which also was a defendant in the trial, was found not to have conspired with EPD.
Mar. 4, 2014, 10:58 AM
- Enbridge (ENB +1.9%) and Enbridge Energy Partners (EEP +0.2%) say they have received shipper support for a C$7B project to replace segments of its Mainline pipeline system running between Alberta and Wisconsin.
- ENB says the replacement program for Line 3, an oil pipeline that is part of the Mainline system, will complement an existing segment replacement program; no U.S. presidential permit is required.
- The Canadian part of the program is estimated to cost ~$4.2B, while the U.S. side is estimated to cost ~$2.6B; the entire program is targeted for completion by H2 2017.
Feb. 14, 2014, 3:59 PM
- Enbridge's (ENB +0.8%) plan to expand the capacity of its Canada-to-U.S. Alberta Clipper pipeline by 120K bbl/day has hit a snag, CEO Al Monaco said in today's earnings call, since getting a U.S. presidential permit for the project is taking longer than expected.
- ENB, which reported lower than expected Q4 earnings today, says it no longer expects to get the permit amendment for the expansion in time to start pumping more oil at midyear, but it can tweak its mainline system, which delivers most of Canada's oil exports to the U.S., to handle additional shipments until it has the permit in hand.
- ENB seeks to expand Alberta Clipper to be able to handle up 800K bbl/day to move rising volumes of crude from the Alberta oil sands; it had expected the first phase of the expansion to be complete at midyear, while a second 230K bbl/day phase had been scheduled to be wrapped up next year.
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