Canadian Insight

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Updated on Thursday, October 10, 2019

Value Creation Group reaches agreement with two First Nations to help transform the Alberta oilsands into clean energy— September 9, 2019

Athabasca Chipewyan First Nation, Chipewyan Prairie First Nation, First Nation #468, and Value Creation Group have jointly announced an Alliance Agreement, targeting to reach a Definitive Business Agreement within fourth quarter of 2019. .

The Alliance Partners will jointly work with Government and industry, to bring to fruition and to transform the oil sands into clean oil industry – economically , competitively  and sustainably, while unearthing huge global oil markets.

Value Creation Group's proprietary technology scheme enables upfront de-carbonization and partial decontamination of bitumen very selectively and cost effectively.

This technology  drastically simplifies the subsequent upgrading and refining  technology complexities and severities , leading to step-changes in capital cost , operating and energy costs;  as a result reducing GHG emissions. 

Value Creation Group's upgrading  produces high quality medium crudes that best-fit conventional  conversion refineries which are by far the majority of global refineries.


Canada’s largest oil producer is concerned with the state of Keystone XL pipeline — September 5, 2019

The CEO of Suncor Energy recently commented on the setbacks surrounding the construction of the Keystone XL pipeline. Mark Little is concerned about the political battle that environmentalists have put up and the possible risks surrounding the pipeline project.

Suncor head stated that Canadian oil producers are counting on the TC Energy Corp. (formerly known as TransCanada Pipeline Corporation) to succeed in  constructing the pipeline.

The prime supporter of the project in the US is President Trump. With the American election coming in the fall of 2020, there are possibilities of political changes and further setbacks to the project.

Speaking at the Barclays investor conference in New York, Suncor CEO Mark Little said, Keystone XL is a massive investment and the political situation in the U.S. is I think increasing the risk associated with that... That’s one that a lot of people are doing soul-searching about right now because it’s also a very substantial investment. Now we still believe it will go ahead. But time will tell.”


Federal Court allows more challenges to Trans Mountain expansion — September 5, 2019

A Federal Court Of Appeal has allowed further challenges to the already government approved Trans Mountain pipeline expansion. The Appeal Court judge has allowed six out of ten indigenous groups for further consultation with the federal government.

The judge has stated that consultation procedures will have short deadlines and will proceed orderly. Expectations are that consultations will begin this month.

This will bring further uncertainty and be another setback for the pipeline project despite being approved twice by the federal government.

Canadian Association of Petroleum Producers expressed disappointment and stated that it was critical to get the pipeline project started and completed….organization stated, “Canada has an opportunity to provide the world with its sustainably produced oil and natural gas to help reduce net global emissions and to meet growing global energy demand.”


Suncor and Shell ask regulator to review Enbridge’s new carriage contract plan— August 27, 2019

Suncor and Shell have followed MEG Energy and have asked the NEB to intervene in the intended pipeline changes by Enbridge.

Enbridge has launched a two month open season to solicit bids from shippers for contracted space on 90% of the Mainline pipeline capacity.

Canadian oil producers fear U.S. refiners like BP Plc and ExxonMobil Corp will contract the bulk of Mainline capacity. They are also concerned the contracts will tie them into delivering crude to the Midwest region, limiting their ability to reach more liquid markets like the U.S. Gulf Coast.


Changes to Enbridge Pipeline allocation volumes is of serious concern to some Alberta crude oil producers— August 20, 2019

Enbridge Inc’s plan to introduce long-term fixed volume contracts on its Mainline system has irritated at least one major oil producer. MEG Energy has  submitted an open letter to the NEB in objection to the intended changes by Enbridge.

Enbridge is planning to switch from a monthly nomination system to “contract carriage” . This comes at a time when Canadian export pipelines are so constrained the Alberta government has imposed oil production curtailments, and has drawn fierce criticism from small producers.

Smaller producers are concerned that large U.S. refiners like BP Plc will snap up most of the contracted capacity, leaving them scrambling to secure space on the smaller allocations of the pipeline volumes.

MEG’s CEO Derek Evans commented, “It is MEG’s position that Enbridge’s contract carriage proposal should be abandoned, as it is not in the overall public interest."

ARC Energy Research market analyst commented on the Enbridge changes.  Jackie Forrest said the 10% of the Mainline left open for spot shipping would likely be heavily rationed, resulting in more barrels getting stranded in Alberta each month and being sold off cheap.


National Energy Board opens yet another round of consultation  — June 24, 2019

National Energy Board announced today that it wants to hear from affected parties, the public and Trans Mountain Pipeline ULC on how the NEB should proceed with regulatory processes for the Trans Mountain Expansion Project, including compliance with Project conditions and approval of the detailed route.

The NEB's proposed approach is to continue the processes that were underway, and to rely on decisions and orders that were issued prior to the Federal Court of Appeal decision on the Project in August 2018, unless relevant circumstances have materially changed.

Most will be wondering, “Why NEB needs further consultation when the federal government has approved the pipeline project, conditions have been laid and that construction will begin in September.”


Federal government approves construction of Trans Mountain pipeline twining — June 18, 2019

The Trudeau Liberal administration has given approval to the Trans Mountain project. This is the second time the federal government has give the go ahead.

 A Supreme court ruling, last August, struck down the project, as it felt that there was not enough consultation with indigenous people.

The Trudeau government believes that construction could possibly begin late this summer. It is likely that with all necessary permits the project won’t begin until after the federal election.

Canadian Association of Petroleum Producers slams Trudeau administration — June 13, 2019

Canadian Association of Petroleum Producers (CAPP) slammed the Trudeau Liberals for damaging the future of Canadian economic growth by not passing the amendments proposed by the senate to Bill C-69.

CAPP stated that Bill C-69, as it stands,  goes beyond hurting Canada’s oil and gas industry. It will drive Canadian investments out of Canada. It will prevent future nation building projects.

The federal government gave Canadians a false choice and it has chosen environment over economic growth. The fact is, Canada can do both and be successful.

The Trudeau administration has failed to listen to thousands of Canadians and their valid suggestions to Bill C-69. The amendments the Senate asked for were ignored.

CAPP went on to conclude that there will be huge economic repercussions because of the new restrictive  legislation. Canada will lose, this year alone, $37 billion in oil and natural gas investments.

A large rally in Calgary offers support for the oil and gas industry — June, 12, 2019

A gathering of over 4000 people in Calgary showed their support for the oil and gas industry and in particular sending a message to Ottawa to approve the twinning of the TransMountain Pipeline.

Premier Scott Moe of Saskatchewan called for the repeal of Bill C48 and C69. The crowd cheered as the premier spoke and stated that these two federal legislations will not only affect the economy of the western provinces but the whole economy of Canada.

Premier Scott Moe slammed the federal carbon tax imposed by the Trudeau Liberal government. Moe stated that the federal tax is nothing but a tax grab and will eventually affect the whole economy of Canada.

Prime Minister Justin Trudeau and federal Natural Resources Minister Amarjeet Sohi have  refused to say when and what decision is coming regarding the twining of the TransMountain pipeline project.



Our most recent ‘Shouts & Toots’  from the Oil Patch  — October 10, 2019

AltaGas Ltd. (ALA:TSX) announced on October 10th that the October dividend will be paid on November 15, 2019, to common shareholders of record on October 25, 2019. The ex-dividend date is October 24, 2019. The amount of the dividend will be $0.08 for each common share. This dividend is an eligible dividend for Canadian income tax purposes.

AltaGas Ltd is a Calgary based company which owns and operates a diversified basket of energy infrastructure businesses. Company has a market cap of $3.9 billion and approximately 273 million shares outstanding.

Emerald Bay Energy Inc. (EBY:TSX) announced on October 10th that drilling operations are ongoing and the Company has spudded the fourth well, #3HC, on the Duval County Ranch Company property. Further information will be provided as it becomes available.

Emerald Bay Energy Inc. is a Calgary based energy company with oil producing properties in southwest Texas as well as non-operated oil and natural gas interests in Central Alberta. Company has a market cap of $4.2 million and approximately 277 million shares outstanding.

Kinder Morgan Canada Limited (KML:TSX) announced on October 10th its webcast and dial-in information for its 2019 third quarter earnings results. Third quarter results will be released on Wednesday, October 16, 2019, at 2:30 p.m. MT (4:30 p.m. ET). A recording of the conference call will be available for replay one hour after the call until the end of the day on October 23, 2019. A live webcast of the conference call can be accessed on Kinder Morgan Canada's website.

Kinder Morgan Canada Limited is a Calgary based company focused on stable, fee-based energy transportation and storage assets that are central to the energy infrastructure of Western Canada. Company has a market cap of $514 million and approximately 35 million shares outstanding.

PetroFrontier Corp. (PFG:TSXV) announced on October 10th that it has entered into a letter of intent and related term sheet with an arm's-length third party funder whereby the third party funder and its affiliates will provide funding to allow PetroFrontier to further develop its interests in the Cold Lake and Wabasca areas of Alberta.

PetroFrontier will assign all of its petroleum and natural gas interests to the Limited Partnership in exchange for 99% of the units of the Limited Partnership. PetroFrontier will enter into an operating agreement with the Limited Partnership to provide operating services with respect to the assets. A new Alberta corporation will be formed to act as general partner for the Limited Partnership which will manage the business and affairs of the Limited Partnership.

The funder will lend to the Limited Partnership the principal sum of up to $28 million to be advanced in three separate tranches. Funder will subscribe for a minimum of $990,000 up to a maximum of $1,990,000 of common shares of PetroFrontier pursuant to a private placement at a price to be set in the context of the market, and subject to the TSX Venture Exchange.

PetroFrontier Corporation is a Calgary based oil and gas company currently focused on developing two Mannville heavy oil plays in the Cold Lake and Wabasca areas of Alberta. Company has a market cap of $12 million and approximately 150 million shares outstanding.

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AltaGas Ltd. (ALA:TSX) announced on October 9th will release its 2019 third quarter financial results on Wednesday, October 30, 2019 before markets open. A conference call and webcast will be held the same day to discuss the financial results and other corporate developments. Shortly after the conclusion of the call, a replay will be available commencing at 12:00 p.m. MT (2:00 p.m. ET) on October 30, 2019.

AltaGas Ltd is a Calgary based company which owns and operates a diversified basket of energy infrastructure businesses. Company has a market cap of $3.9 billion and approximately 273 million shares outstanding.

Petrodorado Energy Ltd. (PDQ:TSX) announced on October 9th that it has entered into a non-binding letter of intent dated October 8, 2019 with an arm's length private Saskatchewan oil and gas company for the purchase of all of the issued and outstanding shares of the private company for consideration consisting of the issuance of up to 20 million shares in the capital of Petrodorado.

Pursuant to the LOI, Petrodorado will become the owner of the private company and obtain access to its business, as more particularly described below. It is expected that a nominee of the private company will become both the Chief Executive Officer of Petrodorado and also join its board of directors. The existing three directors of Petrodorado, Chris Reid, Peter Yates and Dave Hergenhein, will remain as directors of Petrodorado.

Petrodorado Energy Ltd. Is a Calgary based emerging oil and gas company. It has properties and operations in the United States. Company has a  market cap of $1.28 million and approximately 23.3 million shares outstanding.

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Eagle Energy Inc. (EGL:TSX) announced that the TSX Venture Exchange has provided its final approval of the listing of Eagle's common shares as a Tier 2 Oil and Gas Issuer on the TSX-V and the Toronto Stock Exchange has approved Eagle's application for voluntary delisting of Eagle's common shares from the TSX.

Eagle's common shares will be voluntarily delisted from the TSX immediately following the close of trading on October 23, 2019 and will begin trading on the TSX-V at market open on October 24, 2019. Eagle's trading symbol will continue to be "EGL" on the TSX-V and the CUSIP/ISIN number for its common shares will remain the same.

Eagle Energy is a Calgary based oil and gas company with assets and operations in Canada and USA. Company has a market cap of $4.8 million and approximately 44 million shares outstanding.

Emerald Bay Energy Inc. ( EBY:TSX) announced that the company has begun operations to install a new pumping system in the #15 well on the Duval County Ranch Company property. Well #15 is an existing well on the property and is currently producing approximately 10 bbls/day of oil from the Government Wells sand formation. It is anticipated that the new progressive cavity pumping system being installed will increase production to approximately 20 bbls/day. Further information will be provided as it becomes available.

Emerald Bay Energy Inc. is a Calgary based energy company with oil producing properties in southwest Texas as well as non-operated oil and natural gas interests in Central Alberta. Company has a market cap of $4.2 million and approximately 277 million shares outstanding.

Keyera Corp. ( KEY:TSX) announced that it expects to release its 2019 third quarter results after market close on Tuesday, November 5, 2019. A conference call and webcast have been scheduled for Wednesday, November 6, 2019 at 8:00 AM Mountain Time (10:00 AM Eastern Time). A live webcast of the conference call can be accessed on Keyera's website.

Keyera Corporation is a Calgary based company with extensive interconnected assets and depth of expertise in delivering midstream energy solutions. Its predominantly fee-for-service based business consists of natural gas gathering and processing; natural gas liquids processing, transportation, storage and marketing. Company has a market cap of $5.8 billion and approximately 210 million shares outstanding.

More news on Oilpatch Review

Think twice when and who you cast your ballot for on October 21, 2019

 * Do you know that the Trudeau Liberals are ignoring the influx of illegal immigrants from the US at non-stationed entry points. This is skewing the chances for immigration of eligible and desirable immigrants.

* Do you know that the Trudeau Liberal government has eliminated the National Energy Board in order for the federal government to have more control of our natural resources?

* Did you know that our present Liberal government has changed the name of Environment Canada to Environment Canada and Climate Change?

* Did you know that Environment Canada and Climate Change has scrapped weather data from 1850 to1949?

A must read this article:

Quote of the day

Dale Carnegie, “Most of the important things in the world have been accomplished by people who have kept on trying when there seemed to be no hope at all.”

Did you know?

. Haliburton Oil Well Cementing Company conducted the first experimental hydraulic fracturing in 1947. Haliburton, a well servicing company, formulated a fracturing fluid made up of gelled gasoline (napalm) and sand. This fluid was pumped into an oil well and successful achieved  successful fracturing. The oil well belonged to Stanolind Oil Company and was situated in Hugoton Field in southeastern Kansas. In 1949, Haliburton began commercial oil well fracturing was awarded a patent on the process.


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  October 10, 2019

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