Category Archives: Energy

Weak Land Tenure Sales Persist

Sales of oil sands leases since 1 April, the start of the Province`s fiscal year have been weak. As the table below illustrates,  except for the June sale, interest has been weak. Land sales remain important as a leading indicator of future energy investment.

Public Sales Results- Oilsands
Date Bonus Hectares $/HA
11-May 61,690.63 5,169.89 11.93
25-May 3,717.12 1,024.00 3.63
22-Jun 11,170,378.05 28,039.00 398.39
06-Jul 150,192.64 1,280.00 117.34
03-Aug 170,923.52 3,264.00 52.37
Totals 11,556,901.96 38,776.89 298.0358136

The charts following are taken from the Department of Energy`s webpage disclosing its Petroleum and Natural Gas Sales Statistics. The historical data provide a helpful visual of the cycles that have occurred in the  oilpatch over the past 36 years.

Alberta Land Sales_8197_image001

A big boost for development took place in the mid to late 1990s as the oilsands royalty regime was modified to deliberately open investment with modified royalty rates which allowed companies to recoup their capital and a rate of return before meaningful returns to the resource owners occurred.

Alberta Land Sales_10090_image001

These charts also show the difficulties faced during the 1980s and early 1990s, the rapid improvements in the 2000s, save the financial crisis of 2007-09, a sharp recovery followed by a steep decline. Oil and gas discoveries (Montney and Duvernay formations) and the impact of new fracking technology have also played an important role in the demand for land to explore and develop.

Alberta Land Sales_11948_image001

The charts reinforce the difficulty faced by the Crown as resource owner becoming addicted“ to the volatile flow of bonuses into the provincial Treasury.

$5.5B raised for TransMountain17-6-17 EJ

Contracts give TransCanada confidence to expand gas-pipeline system15-6-17 GM

Oil companies projected to slash spending14-6-17 GM

China’s return to the oil patch20-5-17 GM

Oilfield M&A transactions starting to pick up18-5-17 EJ

Alberta pledges $235 million to ‘orphan’ oil wells cleanup19-5-17 GM

Badger hit hard as earnings fall short13-5-17 EJ

Kinder Morgan releases updated list of Trans Mountain shippers8-5-17 GM

.Oil and gas sector moves from ‘hell’ to ‘purgatory’28-4-17 EJ

CNOOC casts doubt on future of Long Lake22-4-17 GM

BP mulls sale of oilsands assets21-4-17 GM

BP said to be weighing sale of oil sands assets21-4-17 GM

Drillers to rebound in Q119-4-17 EJ

Parkland snaps up Chevron assets19-4-17 GM

Chevron seen as next to make exit from oilsands15-4-17 EJ

Cenovus bullish on future after $17.7 B deal12-4-17 EJ

‘Control of our future’12-4-17 GM

Market pumps energy back into Canadian hands12-4-17 GM

Pembina Pipeline planning to build LPG export project in Prince Rupert area12-4-17 EJ

Oil services combination reflects new realities23-3-17 GM

Trican deal to create fracking behemoth23-3-17 EJ

Energy watchdog forces firm into receivership22-3-17 EJ

Recovery, interrupted22-3-17 GM

Source Energy to lower range on IPO21-3-17 GM

TransCanada moves ahead on Montney21-3-17 GM

As oil slumps, Calgary’s worries return15-3-17 GM

Foreign oil players make a bet that locals can turn it around15-3-17 GM

Natural gas deal could give boost to producers14-3-17 EJ

Oilpatch to post $1.1B loss in 201714-3-17 EJ

Savanna lobbies for all share bid14-3-17 GM

Oil service firms seeing signs of new life13-3-17 GM

Canadian Natural spends $12.7 B on oilsands assets10-3-17 EJ

Shell steps back in oil sands shakeup‘We’ve got the fight in us,’ oilsands leader says9-3-17 EJ

oilfield-company-seeks-300m-in-ipo-funds4-3-17-ej

husky-posts-fourth-quarter-profit25-2-17-gm

cenovus-resists-calls-to-spend-3-7b-war-chest17-2-17-ej

encana-shifts-to-growth-as-loss-narrows17-2-17-gm

keystone-revival-takes-step-forward17-2-17-ej

pembina-chevron-agree-to-team-up17-2-17-ej

delays-are-behind-mines-cost-hikes-suncor10-2-17-gm

pengrowth-looks-to-spac-cash-for-oil-and-gas-assets10-2-17-gm

lower-oil-prices-could-be-here-for-a-really-long-time-poloz-warms1-2-17-ej

gas-station-sales-boost-imperial-oil-profit-but-oilsands-output-falls1-2-17-ej

imperial-writes-down-oil-sands-reserves1-2-17-gm

when-the-boom-fades28-1-17-gm

altagas-to-acquire-washington-utility26-1-17-ej

altagas-to-buy-wgl-holdings-in-major-u-s-push26-1-17-gm

why-the-energy-stock-market-rebound-has-hit-a-wall18-1-17-gm

big-deals-forecast-in-energy-industry17-1-17-ej

altagas-in-talks-to-merge-with-u-s-firm13-1-17-gm

chemtrade-to-acquire-canexus-for-roughly-300-million-cash17-12-16-gm

global-energy-sector-to-get-spending-boost12-1-17-ej

b-c-approves-transmountain12-1-17-ej

canadian-energy-sector-fears-competitive-disadvantage11-1-17-gm

legal-notice-edmonton-journal-suncor-application-meadow-creek-west-project9-1-17-ej

partial-upgrading-of-oilsands-could-be-worth-billions6-1-17-ej

oil-producers-plan-spending-hikes-as-hope-returns-to-patch6-1-17-gm

u-s-to-be-net-energy-exporter-by-2026-report6-1-17-ej

crucial-lessons-from-the-oil-shock27-12-16-ej

oil-industry-automation26-12-16-ej

reject-takeover-bid-savanna-tells-shareholders24-12-16-ej

savanna-sees-path-through-slump15-12-16-gm

toro-agree-to-buyout-by-oil-firm-owned-by-arc-financial15-12-16-gm

firm-develops-software-to-predict-pipeline-failures12-12-16-ej

total-officially-initiates-hostile-bid-for-savanna10-12-16-ej

cnrl-boosts-dividend-revives-expansion-in-alberta4-11-16-gm

cnrl-revives-oilsands-plant-shelved-earlier4-11-16

penn-west-trims-losses-in-q33-11-16-ej

alberta-forecast-to-see-small-rise-in-drilling-activity-in-20173-11-16-ej

work-camp-firm-blames-poor-q3-on-slow-fire-recovery3-11-16-ej

transcanadas-equity-offering-sells-out3-11-16-gmas-oil-climbs-industry-eyes-new-spending24-10-16-ej

u-s-cowboys-bring-saudis-to-their-knees22-10-16-gm

precision-drilling-see-declining-revenue22-10-16-gmtranscanada-seeks-to-raise-3-5-billion2-11-16-gm

energy-project-could-put-idle-wells-to-work22-10-16-ej

prairie-farmers-take-financial-hit-as-oil-and-gas-slowdown-stalls-drilling-rigs10-10-16-gm

bond-yields-give-hope-to-pummelled-oilpatch8-10-16-ej

 Just for a laugh read the prayer below. For many in Alberta who depend on the oil sector for sustenance, this prayer speaks to the agony of reliance on the price of a commodity to translate into happiness or pain for so many who have not had the foresight or discipline to put enough away for a “rainy day.”

oilfield-prayer-day13-10-16-ej

The transaction, referenced below, may build some goodwill with the First Nations’ in Northeastern Alberta.  Mikisew Community websitesuncor-sells-stake-in-storage-facility19-10-16-gm

Energy

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.

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

crescent-point-denies-rumours-of-activist-interest24-2-17-gm

oilsands-region-wipes-out-reserves-of-big-explorers24-2-17-ej

exxon-caves-to-oil-crash-with-19-cut23-2-17-gm

transcanada-offers-to-slash-tolls-by-nearly-half23-2-17-ej

transcanada-revives-gas-transport-proposal23-2-17-gm

energy-sector-finds-credit-little-bit-easier-to-get-now21-2-17-ej

1-6b-fort-mcmurray-west-transmission-line-approved13-2-17-ej

oil-by-rail-option-back-on-track-as-pipelines-fill-up15-2-17-ej

oilsands-cap-raises-industry-uncertainty3-2-17-ej

if-you-have-oil-pump-it-now-because-the-glut-isnt-over31-1-17-gm

streamline-application-process-would-cut-producers-costs-aer9-9-16-ej

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

Harvest Operations trims another 67 staff

Harvest Operations trims another 67 staff

Edmonton Journal, March 15th 2016

Read as Pdf: Harvest Energy Debt

oil-firms-hold-spending-amid-higher-prices28-10-16-gm

imperial-exxon-warm-of-major-oil-reserve-writedown29-10-16-gm

new-pipelines-the-oil-sands-may-have-trouble-filling-the-ones-it-has1-11-16-gm

why-oil-dividends-are-set-to-flow-again1-11-16-gm

ottawa-approves-1-3b-nova-natural-gas-system-expansion1-11-16-ej

urgency-to-sell-assets-eases-as-oil-prices-rise29-10-16-ej

Gibson Energy rejects $2.8B takeover offer11-2-16 EJ