Archive | Oil and Gas Sector-Politics and Image

Why Saudi Arabia’s Aramco IPO remains a pipeline dream – by David Olive (Toronto Star – July 14, 2018)

https://www.thestar.com/

As the largest oil exporter in the world, Aramco is the means by which Saudi Arabia has de facto control over the world oil price. Aramco was Saudi Arabia’s device in waging a ruinous price war against U.S. shale-oil producers, causing the world oil price to collapse, and driving foreign investment out of the Alberta oilpatch.

A more transparent Aramco would help Athabasca and other world producers to more accurately calculate anticipated rates and return on their costly long-term investments.

For now, the Saudi oil industry is opaque. For competitive and national-security reasons, Saudi Arabia provides only the sketchiest data on the true extent of its massive reserves, rivaled only by those of Athabasca and Venezuela. Continue Reading →

Oil industry in its twilight years? Executives push back – by Geoffrey Morgan (Financial Post – July 11, 2018)

https://business.financialpost.com/

The IEA, the U.S. Energy Information Administration and OPEC all project the worldwide demand for oil reaching 100 million bpd soon

CALGARY — Executives at Canada’s five largest oil companies pushed back against suggestions Tuesday their industry was in the twilight of its industrial life, as each company detailed growth plans in the face of carbon taxes and pipeline constraints.

“I think we’ve come through a period, and I think we’re closer to the end of it, of people looking at the oil and gas industry almost as a twilight industry,” Husky Energy Inc. president and CEO Rob Peabody told a Calgary investment conference, adding there was a “huge” demand for oil products for at least the next 50 years.

“It’s going to grow for a couple of decades and then it’ll probably plateau for another couple of decades after that,” Peabody said of future oil and gas demand, which he said was the envy of other industries. Continue Reading →

World-heritage park worries threaten to bog down Teck’s oil-sands plans – by Shawn McCarthy (Globe and Mail – July 9, 2018)

https://www.theglobeandmail.com/

Vancouver-based Teck Resources Ltd. is facing opposition to its proposed Frontier oil sands mining operation owing to the project’s potential impacts on a UNESCO world-heritage park where wildlife habitat is deteriorating because of development.

Teck is seeking an environmental permit for a 260,000-barrels-a-day operation along with tailings ponds and water withdrawals in a project that would be the most northerly oil sands mine, just 30 kilometres from the southern border of the sprawling Wood Buffalo National Park.

A joint federal-provincial review panel has scheduled hearings for September, but First Nations and environmental groups are urging it to delay the review until Ottawa can produce a reclamation plan for the park. Continue Reading →

Shell Ramps Up in Kitimat, Raising Canada’s $30 Billion LNG Hopes – by Natalie Obiko Pearson (Bloomberg News – July 9, 2018)

https://www.bloomberg.com/

A flurry of activity in a remote Canadian town is raising optimism that Royal Dutch Shell Plc and its partners are ready to go ahead with the nation’s largest infrastructure project: a C$40 billion ($30 billion) liquefied natural gas terminal that could at last unlock energy exports to Asia.

The action is unmistakable in Kitimat, British Columbia, the Pacific coast city hugging a deep inlet that would be the closest launch point on the continent for LNG cargoes to Asia. The lights are on, shades open and SUVs parked outside a 49-unit apartment complex built to house Shell executives, which sat mostly darkened for the last two years.
Local workers have left jobs at a Rio Tinto Plc smelter nearby to join contractors ramping up for the LNG project. Landlords are raising rents and houses are selling twice as fast as they used to in anticipation of a flood of workers coming to town. Continue Reading →

How smug politicians — including Harper — sabotaged Canada’s dreams of energy superpowerdom – by Terence Corcoran (Financial Post – July 4, 2018)

https://business.financialpost.com/

Meanwhile, the U.S., instead of preening over its superiority, got to work

It is too early to conclude that Prime Minister Justin Trudeau, aided and abetted by climate activists and what the late Charles Krauthammer identified as perceivable leftist stupidity, is presiding over the decline of Canada into its new role as a global energy underpower.

History takes time and a lot can change quickly. More importantly, Trudeau alone cannot be blamed for Canada’s precipitous slide as a global energy market player. The pathetic scramblings of Ottawa and Alberta to salvage the Trans Mountain pipeline are the culmination of a national spiral that began more than a decade ago.

Much of the blame rests with former prime minister Stephen Harper, who was scheduled to meet with senior White House officials in Washington, D.C. on Tuesday. Continue Reading →

Uneasy Energy: As Mexico’s oil sector sputters, crime and violence rattle industry towns – by Gabriel Stargardter (Reuters U.S. – June 28, 2018)

https://www.reuters.com/

PARAÍSO, Mexico—Until recently, Edgar Barrera enjoyed a life many Mexicans could only hope for. In a few short years, the 36-year-old bookkeeper rose from handyman to white-collar worker at what seemed to be one of the most stable companies in Latin America: state-owned oil firm Pemex.

Thanks to Pemex, Barrera met his wife, vacationed on the Mayan Riviera and envisaged a rewarding career without leaving his hometown in Tabasco, a rural state at the southern hook of the Gulf of Mexico where more than half the population lives on less than roughly $92 a month.

Then everything changed. Oil prices plummeted, forcing Pemex to cut his and thousands of other jobs across Mexico. An energy reform, meant to spur business with private competitors, struggled to attract immediate investment. And the gang violence that has crippled Mexico over the last decade finally spread to Tabasco, previously a relatively peaceful corner of the country. Continue Reading →

Trump trade tirades show Canada has never needed new pipelines more, energy leaders warn – by Geoffrey Morgan (Financial Post – June 14, 2018)

http://business.financialpost.com/

CALGARY — U.S. President Donald Trump’s blistering comments about Canadian trade underscore the need for Canada to find new outlets for its oil, the head of the Canadian Association of Petroleum Producers said Tuesday.

“If there’s ever been a time for reflection about ‘Why wouldn’t we have optionality?,’ it is now,” CAAP president and CEO Tim McMillan told the Global Petroleum Show in Calgary.

Given Trump’s comments about trade with Canada being “fool trade,” McMillan said it’s time for Canadian politicians to assist in building new pipelines to the East Coast and to British Columbia’s northern coast to reduce Canadian dependence on the U.S. market. Continue Reading →

Trump trade tirades show Canada has never needed new pipelines more, energy leaders warn – by Geoffrey Morgan (Financial Post – June 13, 2018)

http://business.financialpost.com/

Canadians need to take control of our economic destiny — Alberta Premier Rachel Notley

CALGARY — U.S. President Donald Trump’s blistering comments about Canadian trade underscore the need for Canada to find new outlets for its oil, the head of the Canadian Association of Petroleum Producers said Tuesday.

“If there’s ever been a time for reflection about ‘Why wouldn’t we have optionality?,’ it is now,” CAAP president and CEO Tim McMillan told the Global Petroleum Show in Calgary.

Given Trump’s comments about trade with Canada being “fool trade,” McMillan said it’s time for Canadian politicians to assist in building new pipelines to the East Coast and to British Columbia’s northern coast to reduce Canadian dependence on the U.S. market. Continue Reading →

Political schizophrenia, hypocrisy and fantasy make Canada’s pipeline-killing cocktail – by Gwyn Morgan (Financial Post – June 5, 2018)

http://business.financialpost.com/

Fossil fuels supply more than 80 per cent of global energy – most of which is crude oil. Meanwhile, Canada, with the third-largest oil reserves, produces less than four per cent of global crude supplies

The political discourse surrounding Canada’s oil industry has morphed into a combination of schizophrenia, hypocrisy and fantasy. This debilitating countrywide phenomenon is clearly exemplified at both the federal and provincial levels.

But it’s the recent actions of B.C. Premier John Horgan and his government’s power-sharing puppet-master, Green party leader Andrew Weaver, that deserve to be nominated for special recognition.

Horgan wins the political schizophrenia award for filing a court case that would allow the province to stop the export of oil from the Trans Mountain pipeline expansion while simultaneously filing a separate court case aimed at preventing Alberta from reducing the amount of oil shipped through the existing line. Alberta Premier Rachel Notley summarized his behaviour succinctly by stating, “They want our oil, but they don’t want our oil.” Continue Reading →

Trans Mountain is the cost of Corporate Canada surrendering to green enemies – by Terence Corcoran (Financial Post – May 30, 2018)

http://business.financialpost.com/

With the pipeline fiasco, Canada has now come face to face with the ultimate and disastrous consequences of the grand coalition that has seized control of national policy-making.

The Trudeau government’s desperate decision to ultimately purchase the Trans Mountain pipeline — for the alleged “fair price” of $4.5 billion — is the logical outcome of an incoherent governance regime controlled by a triumvirate of social, political and economic institutions.

The institutional troika is made up of green activists, pandering politicians and capitulating corporations. All are jointly and severally responsible for creating the current legal and economic crisis over Canada’s energy and resource developments, with many more crises to come. Continue Reading →

Globe editorial: Ottawa throws your money at its pipeline problem (Globe and Mail – May 30, 2018)

https://www.theglobeandmail.com/

When Prime Minister Justin Trudeau kept telling Canadians, “We are going to get the pipeline built,” they probably didn’t think that by “we” he meant them. They saw it as more of a royal “we” that referred to his government’s efforts to help Kinder Morgan complete the expansion of the Trans Mountain pipeline on budget.

But no. Ottawa announced Tuesday that it will lend Kinder Morgan money to ensure that construction scheduled for this summer begins on time, and will furthermore buy the pipeline from the Texas company for $4.5-billion. The government expects to become the owner of the existing pipeline by August, and to bear the cost of completing the expansion that has been pegged at more than $7-billion.

In the meantime, Ottawa will look for another company to buy the pipeline, but in all likelihood that will take years. It’s safe to say the Government of Canada will still be in the pipeline business after the general election in 2019. Continue Reading →

The Trans Mountain pipeline expansion must be built – by Rachel Notley (Vancouver Sun – May 22, 2018)

http://vancouversun.com/

For a number of years, I lived in Vancouver. I loved it. Diverse, and forward-looking, Vancouver embodies so much about what makes Canada great. My feelings about Vancouver are shared by countless Albertans who have deep roots in B.C. through family, friends and business.

So when Vancouver Mayor Gregor Robertson says that Alberta’s energy industry “represents a tiny fraction of the overall economy and job count,” Albertans quite rightly get their backs up. In a country as diverse as ours, we are bound to have disputes, but it is important that we base our arguments on facts, not convenient fictions.

So let me correct the record.

Tens of thousands of British Columbians work in Alberta and pay taxes in B.C. — 50,000 at last count. The energy sector contributes 10 per cent to Canada’s GDP, and mining, oil and gas is responsible for 28 per cent of private non-residential investment in B.C. and employs hundreds of thousands of Canadians. So, Mayor Robertson is wrong. Canada’s energy industry is hugely important to the national economy, including B.C.’s. Continue Reading →

The pipeline to the future doesn’t carry the jobs of the past – by Mike Robinson (Troy Media – May 20, 2018)

https://troymedia.com/

The ruckus over the Kinder Morgan project is a good reminder that the economic conditions we once enjoyed are on the way out

While the opinion writers and politicians are venting about expanding the Kinder Morgan pipeline for diluted bitumen to the West Coast, it might help to consider some history.

We didn’t arrive at this shout-fest without making diverse tracks from previous experiences, and most of us are old enough to think back over a few previous decades, or read about circumstances further back still.

My take on this mess starts with two grandfathers from the British lower middle class who didn’t see an employment future in London. So in 1910 they each took a boat to Montreal and hopped on the Canadian Pacific Railway to British Columbia. One got off at Revelstoke, the other in Vancouver. Continue Reading →

‘Ready and prepared to turn off the taps’: Notley issues stark warning to B.C. as pipeline fight escalates – by Geoffrey Morgan (Financial Post – May 17, 2018)

http://business.financialpost.com/

CALGARY – Alberta Premier Rachel Notley threatened to cut off oil shipments to British Columbia “very quickly” on Wednesday, as her government passed its controversial new law that grants the government sweeping new powers over oil and gas shipments.

Notley said she would use the law, first introduced last month and passed Wednesday, if construction does not begin on Kinder Morgan Canada’s $7.4-billion Trans Mountain pipeline expansion soon.

“Albertans, British Columbians and the rest of Canada should understand that if the path forward for the pipeline through B.C. is not settled soon, I am ready and prepared to turn off the taps,” Notley said Wednesday. Continue Reading →

Like it or not, crude oil is the biggest reason for Canada’s prosperity – by Patricia Mohr (Financial Post – May 17, 2018)

http://business.financialpost.com/

Even at the bottom of the oil-price correction in 2016, crude remained the largest positive contributor to Canada’s merchandise trade, generating a $33-billion surplus

The oil industry looms large in the Canadian economy and, in many ways, pays the rent in Canada. Yet many Canadians appear unaware of how critically important the oil industry is to the national economy, a fact often lost in the debate over the Trans Mountain pipeline expansion.

Canada is a trading nation. We owe our economic prosperity and relatively high per-capita income to trade — and crude oil dominates that trade.

In 2014, before the oil-price downturn, crude oil alone generated a $70-billion trade surplus for Canada — excluding smaller surpluses in refined petroleum products and natural gas — far outstripping any other export category (the closest is metals and minerals) and helping to offset large, chronic deficits in autos and parts, industrial machinery, electronic goods and consumer products. Continue Reading →