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23 декабря 2017, 19:36

High-Yield Enbridge Energy Partner's 10% Dividend Just Got Safer

The pipeline partnership's juicy payout seems to be on steadier ground. Here's why.

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18 декабря 2017, 09:21

Нефтяное бедствие для Канады: ее нефть по $37

Нефтяной сектор Канады терпит бедствие. "Черное золото" из нефтяных песков этой страны продается со скидкой $27 по отношению к американской WTI - самая большая разница в цене за последние 4 года.

18 декабря 2017, 09:21

Нефтяное бедствие для Канады: ее нефть по $37

Нефтяной сектор Канады терпит бедствие. "Черное золото" из нефтяных песков этой страны продается со скидкой $27 по отношению к американской WTI - самая большая разница в цене за последние 4 года.

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17 декабря 2017, 23:15

Uh-Oh Canada!

Authored by Nick Cunningham via OilPrice.com, Oil from Canada’s oil sands is now selling at a $27-per-barrel discount relative to WTI, the sharpest difference in more than four years. Western Canada Select (WCS), a benchmark for oil from Alberta’s oil sands, has plunged in December, falling to just $30 per barrel at the end of this past week. WCS typically trades at a discount to WTI, reflecting the differences in quality from lighter forms of oil, as well as the extra transportation costs to move oil hundreds of miles out of Alberta. But a discount is usually something like $10 per barrel, not more than $25. A price deterioration of this magnitude has not been seen in years. (Click to enlarge) There are several reasons why the WCS price has deteriorated. First, the spill and shutdown of TransCanada’s Keystone pipeline in November slowed the flow of oil from Canada to the U.S. as the company was forced to make repairs. That led to a minor spike in WTI as supply tightened a bit in the U.S., but upstream in Canada it put downward pressure on WCS amid a glut of supply. Canadian oil was diverted into storage as the pipeline underwent repairs, and the backup pushed prices down. Second, railroad companies have been unable to accommodate the oil industry on such short notice. “It’s hard for the railroads to change their operating plan really quickly,” Steve Owens, rail analyst at IHS Markit, told Bloomberg. “There are equipment constraints and crew constraints.” Rail companies have apparently been tied up trying to ship delayed grain cargoes and have not been able to accept oil shipments. To make matters worse, Canadian National Railway Co. is suffering from a backlog after three train derailments in the past two months slowed the typical volume of grain moving on the railways, according to Ag Transport Coalition. At the same time, while rail was a crucial mode of transport for oil a few years ago, the collapse of prices in 2014 led to a sharp decline in oil-by-rail shipments. As such, rail fell out of favor, and rail companies shifted their focus to other commodities. Nevertheless, shipments of crude via rail are starting to rise again as low WCS prices have made it more attractive to U.S. refiners. But because Canadian rail is clogged up with grain at the moment, rail won’t be able to completely resolve the oil backlog. In a glaring example of how bad the problem has become, it is apparently economic at the moment to ship oil by manifest trains, according to Bloomberg and IHS Markit, which are tanker cars attached to other trains carrying other commodities. It’s a pretty absurd way to move oil, with a transportation cost of as much as $24 per barrel, compared to a few bucks via pipeline. But, current market conditions make it possible. Meanwhile, although the outage at Keystone was one of the main proximate causes of the deterioration of WCS prices, the larger problem is a chronic one—a lack of new pipeline capacity even as Canada’s oil sands have added new sources of supply in recent years. For instance, Suncor Energy is set to ramp up output from its new Fort Hills project (a project planned years ago when oil prices were high), which will add 190,000 bpd of new oil sands supply within the next 12 months. "We have a lot of oil in the oilsands," Conor Bill, managing director of Mount Auburn Capital Corp., told the CBC. "and the problem is there aren't a lot of ways to get that crude out of the area where it's produced." There are a handful of major pipeline projects on the drawing board, all of which still face hurdles. Keystone XL, Trans Mountain Expansion and Enbridge’s Line 3 expansion each promise to carry Alberta oil to market, but none of them will be online anytime soon. That means the WCS discount will linger for a while. At the end of the day, the current $27-per-barrel discount is being acutely felt in Canada’s oil industry. Kevin Birn, a director at IHS Energy in Calgary, told Bloomberg that a $25-per-barrel WCS discount translates into a loss of $20 million per day for Canada’s oil producers.

13 декабря 2017, 23:34

Enbridge May Defer In-Service Date of Line 3 to Q4 2019

The project, touted to be the largest for Enbridge (ENB), entails the replacement of the entire old pipeline, spanning over 1,031 miles.

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13 декабря 2017, 19:24

Phillips 66, Enbridge hold Permian crude pipeline open season

Phillips 66 and Enbridge Inc. are holding an open season for the Gray Oak Pipeline, a 385,000-b/d system that will carry Permian basin production for export and to Texas refineries in Corpus Christi, Freeport, and Houston. Shippers will have the option to select from origination stations in Reeves, Loving, Winkler, and Crane counties in West Texas. 

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12 декабря 2017, 21:44

Oil & Gas Stock Roundup: CVX's Spending Cut, HP & BBG's Acquisitions & More

Chevron (CVX) set its 2018 capital budget at $18.3 billion, down 4% from its projected spending this year, while Bill Barrett (BBG) and Helmerich & Payne (HP) struck separate acquisition deals.

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12 декабря 2017, 18:00

Why Is Canadian Oil So Cheap?

Western Canadian heavy crude’s price discount to WTI widened to the most in three years, at US$23 for the January contract and US$27 for the December contract, after Enbridge announced a new rationing of space in parts of its Mainline network, which is used to carry most of the crude Canada exports to the United States. The rationing was prompted by unplanned outages in the network and will cause the accumulation of crude oil at storage hubs across Canada’s top oil producer, Alberta. Enbridge’s announcement for an apportionment…

12 декабря 2017, 17:11

Enbridge to Gauge Shippers' Interest in Gray Oak Pipeline

Enbridge (ENB) and Phillips 66 will likely help oil producers carry crude to the Gulf Coast market from Permian Basin through the Gray Oak Pipeline.

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08 декабря 2017, 16:05

Enbridge Fetches C$1.5 Billion From Common Stock Offering

Enbridge (ENB) will likely utilize proceeds from the stock offering to finance capital projects and lower debt load.

07 декабря 2017, 12:00

East Timor Is Running Out of Oil

East Timor may be running out of oil, and its $16 billion rainy day sovereign wealth fund may soon run dry—still, its former leader says East Timor will survive. One of the world’s newest and poorest countries, East Timor in Southeast Asia, could still be a success story even with expectations that its oil fields will run dry by 2022 and its sovereign oil fund will be emptied by 2027, East Timor’s former leader Jose Ramos-Horta told Al Jazeera on the sidelines of a conference in Fiji.   Oil revenues accounted for 78 percent…

07 декабря 2017, 07:00

Withdrawal From OPEC Deal Could Take 6 Months To Negotiate

Withdrawing from the OPEC-NOPEC agreement to cut 1.8 million barrels per day of output could take up to six months to fully negotiate, according to top Russian energy official Alexander Novak. "This is a process to be discussed. It can take three months or half-year. A specific moment of time to be considered, depending on the future demand," the minister said. Novak said discussing a premature withdrawal did not reflect any desire within the Russian leadership to abandon the deal, which, over its lifetime in 2017, has allowed the Brent barrel…

07 декабря 2017, 03:00

India’s Largest Refiner Looks To Ditch Oil In Favor Of Renewables

Indian Oil, its namesake country’s largest refiner, is preparing to diversify into green energy as New Delhi expands its plans to abandon fossil fuels in the coming years, according to emerging reports. Existing refinery expansion plans will remain flexible to allow for cancellations, provided oil demand falls faster than anticipated, chairman Sanjiv Singh said in an interview this week. Renewable energies are taking up larger share of the country’s energy mix, but the refining company plans on being relevant even after the end of oil.…

07 декабря 2017, 01:30

Protestors Shut Down A Minnesota Wells Fargo Over Oil Investments

Protestors urging Wells Fargo to divest from oil pipeline projects forced a commercial banking location in Detroit Lakes, Minnesota, to shut down on Wednesday, according to a local report. "Wells Fargo funds these oil companies, they fund the oil pipeline, which shot rubber bullets at peaceful protesters last year," disabled veteran and protestor Jessie Campbell said, regarding the top bank’s involvement with the Dakota Access pipeline, which had numerous financial backers. Campbell had locked herself to a table in the lobby of the Minnesota…