Canadian Insight

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Updated on Friday, October 15, 2021

Acts of Hypocrisy and Stupidity — August 23, 2021

It’s only a little over eight months ago that Joe Biden was sworn in as US 46th president. He has already committed more blunders than the past ten presidents.

Immediately, after being sworn in, President Biden cancelled the permits which would allow the completion and operation of the Keystone XL Pipeline. This pipeline would have supplemented US refineries with all the crude oil that US would ever need without dependence on OPEC or other foreign sources.

After the withdrawal of the Keystone XL permit, the Biden administration canceled all new permits to prevent oil drilling and operations on public lands and waters.

During the Trump Administration, oil and gas industry in US flourished. American crude oil output almost doubled. US was on the way to becoming energy secure.

Now let’s look at what has happened in the US. Crude oil production has fallen by about 1 million barrels per day since Biden became president. Fuel pries in America are rising. With cancellation of new drilling permits, future looks very gloomy.

Last week, President Biden pleaded with OPEC to increase oil production as US gasoline prices were running high and interfered America’s economic recovery.

Biden’s push for green energy has stifled the oil and gas industry. It is apparent that Biden never researched the  important uses for crude oil. He has assumed that crude oil only produces fuel for cars and trucks. 

Today, US is importing 844,000 barrels of crude oil daily from Russia, a close ally of OPEC and an enemy of US! Now President Biden wants OPEC to increase its oil production. Maybe Joe Biden should check into history and see what happened in 1973.

 

 

Pembina Pipeline terminates deal to buy Inter Pipeline — July 27, 2021

Pembina Pipeline announced that it is pulling out of the agreement with Inter Pipeline to buy that company. It appears that Brookfield Infrastructure has won the top bid to buy Inter Pipeline.

Inter Pipeline Corporation has informed Pembina Pipeline that Inter Pipeline's Board of Directors will not be reconfirming its recommendation that shareholders of the company vote in favor of the Pembina Arrangement.

Inter Pipeline has agreed to pay Pembina Pipeline a termination fee of $350 million.

Inter Pipeline's Board of Directors is now engaging with Brookfield in an effort to reach a mutually agreeable transaction in the best interests of shareholders. Inter Pipeline will now make a formal recommendation on the Revised Brookfield Offer.

 

 

Canadian oilsands producers aim to achieve zero emissions — June 10, 2021

Canada’s largest oilsands producers are aiming to achieve net zero greenhouse emissions by 2050.

Canadian Natural Resources, Cenovus, Imperial Oil ltd., MEG Energy and Suncor Energy announced their ambitious plans to help meet Canada’s climate goals.

These companies have initiated a unique alliance and will work collectively with federal and Alberta governments to achieve net zero greenhouse gas emissions.

This particular pathways vision is anchored by carbon captures and storage connected to a carbon sequestration hub. It will enable to multi-sector tie-ins for expanded emissions reductions.

This will enable to continue developing a very valuable resource, create jobs, develop a clean sector and contribute to Canada’s gross domestic product.

 

 

Pembina Pipeline buying out Inter Pipeline for $8.3 billion — June 1, 2021

Pembina Pipeline and Inter Pipeline have signed a deal to buy out Inter Pipeline for $8.3 billion in stock.  Inter Pipeline stockholders will receive half a share of Pembina  for each Inter Pipeline that they hold. The offer is worth $19.45 per Inter Pipeline share.

The Pembina deal has topped the offer made by Brookfield Infrastructure Partners which offered stock holders of Inter Pipeline $16.50 per share.

The boards of Pembina and Inter Pipeline have unanimously approved the deal. It still requires 2/3 stock holder approval by Inter Pipeline and majority vote by Pembina stock holders.

The deal is expected to close by the end of the fourth quarter this year.

 

 

Enbridge Line 5 in operation despite threats from state governor— May 13, 2021

The May 12, 2021 deadline for Enbridge to stop using Line 5 Pipeline has passed and it continues to operate.

Michigan Governor Gretchen Whitmer has threatened Enbridge that if it continue to use the pipeline the state of Michigan will garnish all operational profits for Line 5.

A statement from Enbridge reveals that the company has no intent to stop using Line 5 pipeline unless it is ordered by a federal court.

Line 5 supplies over half a million barrels of crude oil into northeastern states, Ontario and Quebec. The pipeline was built in 1953. It snakes around the Great Lakes and crosses under water at the Straits of Mackinac.

 

Canadian Railways stepping up crude  oil shipments into eastern Canada— May 5, 2021

Observations throughout western Canada point to an increased travel of railway crude oil tankers . One instance showed a CP train heading through central Saskatchewan with well over a hundred and fifty crude oil tankers heading east.

It is obvious that refineries in Sarnia, Ontario and points east are preparing for alternative sources of crude oil should the Enbridge Line 5 be shut down. State of Michigan Legislature has passed a law closing that line on May 12, 2021 due to safety reasons.

 

House of Commons Committee affirms importance of Line 5— April 19, 2021

An all-party Canadian House of Commons Committee has released a report stipulating the importance of the Enbridge Line 5.

The report states that governments on both of the sides of the border should resolve the dispute between the Michigan state and Enbridge.

The House of Commons Committee  held hearings with labor, business groups and labor unions. Talks also included Energy ministers of Alberta, Saskatchewan and Ontario. Several organizations provided written statements in support of Line 5.

Committee members and all participants unanimously agreed of the importance of Line 5. It’s not just another pipeline. It is the lifeline to Ontario, Quebec and northeastern points in US.

It is unfortunate that the federal governments of Canada and US are not at the forefront in resolving the dispute.

 

The clock is ticking on Enbridge Line 5 before it’s shutdown — March 31, 2021

In just a little over a month, on May 12, 2021, Enbridge Line 5 will be forced to close down by the state of Michigan.

On November 2019, Michigan Governor Gretchen Whitmer  will withdraw easement rights which had previously allowed Enbridge Line 5 to carry crude oil through that pipeline.

It appears that the governing Trudeau left leaning Administration has swept this under the rug and believes that this serious energy problem will solved with solar panels and wind mills.

This line is a very critical energy artery for the provinces of Ontario and Quebec. It delivers half of the crude oil required by refineries for the two provinces.

Ontario alone receives 540,000 barrels of crude oil for the refineries in Sarnia. These refineries supply 100% of all fuel needed by the Pearson Airport.

Should Enbridge Line 5 be closed it will require a miracle to fill the void.

Shutting down Enbridge Line 5 would require 2,000 semi truck units, or 800 rail cars of crude oil a day to keep refineries in eastern Canada in a normal day operation.

Closure of the refineries in Sarnia area alone would affect the employment of 5000 skilled labor jobs and  23,500 associated jobs.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Our most recent ‘Shouts & Toots’  from the Oil Patch  — October 15, 2021

Altura Energy Inc. ( ATU:TSXV) announced that it has completed its previously announced name change to "Tenaz Energy Corp." pursuant to a shareholders' resolution passed at the special meeting of shareholders held on October 7, 2021. Effective at the opening of trading on Tuesday, October 19, 2021, the common shares of the Company will trade under the new name and the new stock trading symbol of "TNZ". Shareholders are not required to take any steps to exchange their share certificates as a result of this change.

Altura Energy Incorporated is a Calgary based oil and gas company with operations in central Alberta. Company has a market cap of $50 million and approximately 33 million shares outstanding.

Gibson Energy Inc. (GEI:TSX) announced that it has received the top "AAA" rating from MSCI ESG Ratings, being only one of three companies globally in the Oil & Gas Refining, Marketing, Transportation & Storage industry and the only company in North America in that industry, to receive this leadership rating. In addition, building on its recognized sustainability efforts, the Company is pleased to announce an ambitious Net Zero by 2050 target, which will become the Company's long-term, overarching climate and GHG emission goal.

Gibson Energy Incorporated is a Calgary based infrastructure and logistics services company. Gibson has a market cap of $3.3 billion and approximately 145 million shares outstanding.

Ovintiv Inc. (OVV:TSX) announced plans to hold its third quarter 2021 results conference call at 9:00 a.m. MT, on Wednesday November 3, 2021. The company plans to release its financial and operating results after market close, Tuesday November 2, 2021. In addition to the release, supplemental slides and financial statements will be available on the company's website.

Ovintiv Incorporated is the former Encana Corporation which was based in Calgary. It has changed its name and moved its headquarters to Denver Colorado. Company is focused on developing oil and natural gas reserves. Ovintiv has a market cap of $5.4 billion and approximately 27 billion shares outstanding.

Parkland Corporation (PKI:TSX) announced its 2021 third quarter results after markets close on Tuesday, November 2, 2021. A conference call and webcast will then be held at 6:30 a.m. MDT (8:30 a.m. EDT) on Wednesday, November 3, 2021, to discuss the results.

Parkland Corporation is an Alberta based supplier of fuel and petroleum. Company operates throughout Canada, USA, and the Caribbean. Company has a market cap of $6.8 billion and approximately148 million shares outstanding.

Whitecap Resources Inc. (WCP:TSX) announced that a cash dividend of Cdn. $0.0225 per common share in respect of October operations will be paid on November 15, 2021 to shareholders of record on October 31, 2021. This dividend is an eligible dividend for the purposes of the Income Tax Act (Canada).

In addition, Whitecap announces that it intends to release its third quarter 2021 results before market open on Thursday, October 28, 2021 and has scheduled a conference call and webcast to begin promptly at 9:00 am MT (11:00 am ET) on Thursday, October 28, 2021.

Whitecap Resources Inc. is a Calgary based oil and gas company with operations in western Canada. Whitecap has a market cap of $2.0 billion and approximately 414 million shares outstanding.

49 North Resources Inc. (FNR:TSX) announced that it has completed the mail out of the materials for its previously announced rights offering to its shareholders. A copy of the documents are also available for download directly from FNR website at: www.fnr.ca or from the company's profile on SEDAR.

49 North Resources Inc. is a Saskatoon based resource investment company. It has a diversified portfolio which includes mineral and oil and gas companies. 49 North Resources has a market cap of $3.75 million and approximately 83 million shares outstanding.

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AltaGas Ltd. (ALA:TSX) announced on October 12th that the October dividend will be paid on November 15, 2021, to common shareholders of record on October 25, 2021. The amount of the dividend will be $0.0833 for each common share. This dividend is an eligible dividend for Canadian income tax purpose.

AltaGas Canada Ltd is a Calgary based company which owns and operates a diversified basket of energy infrastructure businesses. Company has a market cap of $1.0 billion and approximately 30 million shares outstanding.

Ballard Power Systems (BLDP:TSX) announced on October 12th that the company has signed an Equipment Supply Agreement to provide 8 of its 70-kilowatt FCmoveTM-HD fuel cell modules to Talgo S.A. – a leader in the design, manufacture, and maintenance of high-speed light rail trains, headquartered in Madrid, Spain – for trials of its Talgo Vittal-One commuter and regional passenger train. Talgo plans to conduct their demonstration in early 2022 in Spain, with expected commercialization in 2023.

Talgo has an industrial presence in Spain, Germany, Kazakhstan, Uzbekistan, Russia, Saudi Arabia and the U.S., and is recognized worldwide for its capacity for innovation, unique and distinctive technology and reliability.

Ballard Power Systems is a Vancouver based Canadian company engaged in proton exchange membrane fuel cell development and commercialization. Company has a market cap of $864 million and approximately 232 million shares outstanding

Permex Petroleum Corporation (OIL:CNX) announced that the company has appointed John Perry ("J.P.") Bryan, Jr. and John James ("Jay") Lendrum, III to its Board of Director. Bryan has built a legacy throughout his career which notably includes serving as President and CEO of Gulf Canada Resources Ltd., one of the "big four" oil companies that existed prior to its acquisition by Conoco Inc. Bryan served as Chairman and CEO of numerous oil and gas companies in addition to leadership positions in the financial services industry.

Mr. Bryan commented: "Permex stands to greatly benefit from its evolving position within the North American oil and gas market. I believe the experience I gained working at the forefront of the industry, including my tenure at Gulf Canada, will enable me to effectively advise the Permex management team through what I anticipate will be a prosperous era for the company."

Permex Petroleum Corporation is a Vancouver based oil and gas company with operations in the Permian Basin in the US. Company has a market cap of $2 million and approximately 40 million shares outstanding.

Wilton Resources Inc. (WIL:TSXV) announced that it submitted an application to the TSX Venture Exchange to amend the term of 1,500,000 common share purchase warrants issued to subscribers as part of the Corporation's private placement financing which closed on October 24, 2019. Subject to Exchange approval, the Corporation intends to amend the term of the Warrants by extending the expiry date of such Warrants from October 24, 2021 to October 24, 2022. All other terms of the Warrants remain the same.

Wilton Resources Inc. is a Calgary based oil and gas company with assets and operations in western Canada. Company has a market cap of $25 million and 59 million shares outstanding.

Zedcor Inc. (ZDC:TSXV) announced that at the request of the Corporation, its former auditor, KPMG LLP , has resigned effective October 8, 2021 and MNP LLPhas been appointed as the successor auditor, effective the same day until the Corporation's next annual meeting of shareholders. The resignation of the Former Auditor and appointment of the Successor Auditor have been considered and approved by the Corporation's Board of Directors

Zedcor Energy Inc. is a Canadian public corporation and parent company to Zedcor Energy Services Corp. Zedcor is engaged in the rental of surface equipment and accommodations, and providing security and surveillance services in Western Canada. Company has a market cap of $4 million and 54 million shares outstanding.

More news on Oilpatch Review

Quote of the day

W. C. Fields, “If at first you don't succeed, try, try again. Then quit. There's no point in being a damn fool about it.”

Did you know?

Simple variations of the famous pump jack, also known as the jack pump, grasshopper pump, or sucker rod pump were first used in the early 1900's. By 1913, the Simplex Pumping Jack became widely popular throughout the U.S. oil fields.  Walter C. Trout, who worked in Texas for Lufkin Foundry & Machine Company, is credited for designing the now familiar counterbalanced oilfield pump jack. Trout received a patent for his invention in1926.

 

prices compiled and updated on a regular basis by Canadian Insight

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     WCS  / WTI

 Price Spread -$13.45

  October 15, 2021

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