Originally posted 12 July 2016

Energy drives politics in Alberta.  Since the early days of the twentieth century when natural gas (1911) and oil (1914) was discovered in the Turner Valley, the politics of Alberta have been influenced by the growing wealth of the oil and gas sector. Three pillars of the Calgary establishment- Sir James Lougheed, R.B. Bennett and W.H. McLaws – created the Calgary Stock Exchange in 1913.  Like so many Alberta financial stories, the stock exchange grew by leaps and bounds until its building was foreclosed upon. While Alberta’s premiers have not come directly from the oil patch, premiers ignore the oil patch at their peril.

The table below illustrates the growth of production over the past 31 years.  Production has grown significantly in the past decade as crude bitumen production has displaced light crude as the dominant form of oil extraction. Synthetic crude oil production is also rising, but without a further investment in upgraders, prices obtained for the resource will be substantially less than standard industry benchmarks like WTI.

Oil production_3898_image001

A key factor in pricing is the cost of transportation and the availability of transportation. With the failure by industry (and governments?) to gain approval for new pipelines, transportation bottlenecks are occurring. Rail transport of oil products is more expensive and dangerous than conventional pipelines, however industry has been unable to gain regulatory approval (and social license) for these endeavours.

Cenovus finds surprising buyers for $1.3 billion of oil and gas assets20-10-17 EJ

Cenovus sells Palliser assets in Alberta for $1.3 billion

Unusual buyers cleaning up in oil patch deals20-10-17 GM

Fort Hills partners take suppliers to court16-10-17 GM

Era of oil supply certainty forcing strategy changes16-10-17 EJ

Oil sector stung by omission from supercluster program16-10-17 EJ

Natural gas prices fall into negative territory13-10-17 EJ

Sponsor contentSeeking solutions for oil patch problems10-10-17 GM

Oilpatch favours growth over dividends, despite pressure from investors10-10-17 EJ

Oil export capacity to remain tight after project nixed-analyst7-10-17 EJ

Alberta gas producers step fight for share of Ontario market2-10-17 EJ

Innovation a constant in oilsands production30-9-17 EJ

Oilweek hit by double whammy30-9-17 GM

Lundin-backed energy firm takes over Cenovus asset26-9-17 GM

Alberta shale offers hope for future beyond oil sands-NEB26-9-17 GM

OIlsands By the Numbers25-9-17 EJ

Oilsands timeline25-9-17 EJ

Cenovus nears deal on natural gas assets to pay debt19-9-17 GM

Canada ranks second to U.S. in growth of oil output-report14-9-17 EJ

Oil sands megadeal gives boost to CNRL4-8-17 GM

Work begins on Enbridge Line 3 pipeline project4-8-17 EJ

Energy firms vulnerable to climate policies22-6-17 EJ

And then there was one….CEO who made a bad deal21-7-17 EJ

Cenovus CEO steps aside as woes persist21-6-17 GM

Oilsands production expected to dip-report16-6-127 EJ

Encana asset sale a boon in oil downturn10-6-17 GM

Encana, Centrica sell gas assets worth total of $1.7B10-6-17 EJ

Despite retreat from oil sands, Shell affirms commitment to Canada7-6-17 GM

How M and A action could crimp Canadian energy stock prices30-5-17 GM

Kinder Morgan Canada seeks $1.75B for its IPO25-5-17 EJ

Kinder Morgan prices IPO below range25-5-17 GM

Investors ready their bets on Trans Mountain pipeline project24-5-17 GM

Shell plans to sell $4.1 -billion stake in CNRL24-5-17 GM

Oil’s down, bottoms up- Calgary’s mood darkens again10-5-17 GM

Slumping crude price dents Canadian oil patch firms5-5-17 GM

Suncor eyes oil sands deals, but in no rush27-4-17 GM

Cenovus seeks to assuage debt concerns27-4-17 GM

Appeal court backs decision favouring Redwater creditors26-4-17 EJ

Cenovus earnings overshadowed by unpopular ConocoPhillips deal25-4-17 GM

Cenovus faces miffed investors, but it’s not alone26-4-17 GM

Cenovus megadeal comes under fire25-4-17 EJ

Investors balk at Cenovus’s megadeal26-4-17 GMPrecision Drilling sees drop in prices25-4-17 GM

In Alberta, a rush to renewables amid bet on new energy17-4-17 GM

B.C.-Alberta’s Montney gas play gains traction17-4-17 EJ

Investing in renewable energy in a coal and oil moment18-4-17 GM

Chevron mulls sale of Canadian oil assets-source14-4-17 GMSource Energy launches first major industry IPO since 201414-4-17 GMElectric cars a growing threat to oil4-4-17 EJ

Cenovus deal- RIght place, but wrong time31-3-17 GM

Cenovus piles on debt for ConocoPhillips deal31-3-17 GM

Market not sold on Cenovus move31-3-17 EJ

Cenovus pays ConocoPhillips $17.7B for assets30-3-17 EJ

Cenovus seals massive oil sands deal30-3-17 GM

Suncor expedites Syncrude upkeep after fire28-3-17 GM

Total Energy emerges as apparent victor in the battle for Savanna28-3-17 GM

Alberta First Nation to tap bond market for energy investment24-3-17 GM

Low prices lead to Painted Pony cuts7-3-17 GM












New drilliong incentives ‘step in right direction’12-7-16 EJ

CAPP predicts decline in long-term oil output24-6-16 EJOilsands could suffer pipeline bottleneck12-7-16 GMU.S. Production is taking a bite out of natural gas exports, study says6-7-16 EJ

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