Canadian Insight

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Updated on Wednesday, June 19, 2019

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.

Canada’s Oil and Gas Producers  making a request to ‘vote for energy’— June 4, 2019

Canadian Association of Petroleum Producers are asking all Canadians that they should seriously consider who they vote for in the next federal election this coming fall.

CAPP released its federal energy platform for 2019. It outlines the positive issues surrounding oil and natural gas and the possibilities to generate real economic growth.

CAPP stated that it will be a defining moment as to the direction of the oil and gas energy. It is important to note which political party will support and encourage growth and prosperity in the energy sector.

Canada has a golden opportunity to prosper, generate vibrant economic growth and increase employment if the right political direction is chosen to govern. World oil and natural gas demand is on the increase and Canada can become a major supplier.

 

British Columbia’s top court rules that the province has no right to restrict oil shipments — May 24,, 2019

British Columbia’s top court ruled that the province has no right to  restrict oil shipments through provincial borders.

The five judge panel agreed unanimously that the amendments to B.C.’s Environmental Management Act were unconstitutional. The provincial act would interfere with the federal regulator (National Energy Board) which has exclusive jurisdiction over interprovincial pipelines.

The court’s report stated that the provincial act would have placed conditions and interfered with the movement of heavy oil through a federal undertaking. If passed it could have stopped all oversea exports of heavy oil.

The B.C.’s Environmental Management Act would have made it mandatory for all oil shipments moving through the province to apply for a “hazardous substance permit”. The province would have also the right to cancel or suspend a permit if it felt that the oil shipment contravened provincial environmental laws.

This court ruling marks a win for the expansion of TransMountain pipeline expansion project. It is also a win for the province of Alberta, all Canadians and all oil industry in Canada.

Canadian Municipalities are concerned about Bill C-69 and its consequences — May 2,, 2019

Coalition of Canadian Municipalities for Energy Action has expressed their concerns and suggested amendments towards Bill C-69 with Ministers, Senators, Members of Parliament, and other key political decision-makers in Ottawa.

 Bill C-69 does not clearly outline the financial and administrative burden for municipalities. There is concern that this uncertainty will lead business and industry to invest elsewhere. The purpose of the bill should be to improve investor confidence, strengthen the Canadian economy, encourage prosperity, and improve competitiveness. Municipalities would like to see these principles reflected in the legislation.

With the bill's proposed new regulatory structure there is concern that progress on municipal infrastructure projects will be impeded. The language of the bill is open to interpretation and does not provide the necessary clarity on municipal land-use planning, waterway use, indigenous consultation or federal grants.

CAPP informing Newfoundland electorate  of the value of oil and gas industry to the province and Canada — May 1, 2019

Canadian Association of Petroleum Producers are informing the citizens of Newfoundland and Labrador that they should be informed about how valuable the oil and gas industry is to the economy of that province and Canada as a whole.

Paul Barnes, director for CAPP, and speaking for the organization, stated, “Newfoundlanders and Labradorians need to be well-informed and have a clear picture of how we can make our province better before heading into the election. A vote for energy sends the message that Newfoundland and Labrador can, and should, be supplying energy to the world.

A healthy oil and natural gas industry benefits all of Canada, and builds on the backbone of our economy. As Newfoundlanders and Labradorians head to the polls, the message is that a vote for energy is a vote to build a prosperous Newfoundland and Labrador.”

A new more positive direction for Alberta and its oil and gas industry — April 17, 2019

Jason Kenny and his United Conservative Party won a majority government yesterday. Kenny is a former Conservative cabinet minister in the Stephen Harper government.

Immediately after getting elected he announced that Alberta is open for business. He invited all domestic and foreign investors back into the province and stated, “Alberta is now open for business.” Kenny’s prime goal is to jump start Alberta’s economy.

Jason Kenny promised the electorate that he will scrap the Rachel Notely implemented carbon tax and fight the federal carbon tax in court. Kenny will be joining the other conservative governed provinces ( Saskatchewan, Manitoba, Ontario and New Brunswick ) in opposition to the left leaning Trudeau administration.

President Trump jump starting new energy projects — April 15, 2019

President Trump has signed another order clarifying the president alone has authority to issue permits for cross-border projects such as pipelines.

This new order makes it much more difficult for states to block pipelines and other energy projects on the basis of environmental concerns.

President Donald Trump is eager to jump start energy projects such as the TransCanada Keystone XL oil pipeline. He has now taken action to assert executive power over such infrastructure.

President Trump, prior to the enactment of the above mentioned third order,  issued a new permit which replaces the one granted in March 2017. The order is intended speed up development of the controversial pipeline, which would ship crude oil from tar sands in western Canada to the U.S. Gulf Coast.

Kitimat LNG terminal may double in size according to its two principal investors — April 5, 2019

Chevron Canada Ltd and Woodside Energy Ltd have applied for a new license for their Kitimat LNG plant in northern British Columbia that could see it nearly double in size to produce 18 million tonnes per year.

The companies submitted an application to the National Energy Board this week, with a revised plant design that may include up to three LNG trains, instead of two.

The Kitimat LNG application follows the approval last October of the massive LNG Canada project, which is also located in Kitimat. That project is headed by Royal Dutch Shell. It will initially produce 14 million tonnes per year. The plant will have the option to increase to 28 million tonnes per year.

 

 

 

 

Our most recent ‘Shouts & Toots’  from the Oil Patch  — June 19, 2019

Eagle Energy Inc. (EGL:TSX) announced that all of the nominees listed in Eagle's management information circular dated May 9, 2019 were elected as directors of Eagle at its annual meeting held on June 18, 2019. In addition, Eagle's shareholders approved the reappointment of PricewaterhouseCoopers LLP as Eagle's auditor and fixing the number of directors of Eagle at five.

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.

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Enerplus Corporation (ERF:TSX) announced on June 18th that a cash dividend in the amount of CDN$0.01 per share will be payable on July 15, 2019 to all shareholders of record at the close of business on June 28, 2019. The ex-dividend date for this payment is June 27, 2019. Dividends paid by Enerplus are considered an "eligible dividend" for Canadian tax purposes. For U.S. income tax purposes, Enerplus' dividends are considered "qualified dividends".

Enerplus is a Calgary based independent North American exploration and production company focused on its crude oil and natural gas assets in Canada and the United States. Company has a market cap of $2.8 billion and approximately 244 million shares outstanding.

Point Loma Resources Ltd. (PLX:TSX) announced on June 18th an operational update. Company reported its first oil production from the Corporation's Wizard Lake Rex oil discovery and provides an operational update. Point Loma would also like to announce that it will be hosting a live webinar at 11:00am PT (2:00pm ET) on Wednesday, June 19th .

The Wizard Lake Rex oil discovery well has been producing for 10 days and continues to clean up with increasing oil rates as illustrated below in figure 1. Point Loma will continue to optimize the well production and seek a stabilized initial rate. The API of the oil is 18.5 and is being sold as a medium grade crude price.Current production is estimated at 275 bbls of oil per day.

TAG Oil Limited (TA :TSX) announced on June 18th that ERC Equipoise Ltd. , a qualified reserves evaluator in accordance with National Instrument 51-101 and the Canadian Oil and Gas Evaluation Handbook, has completed its independent reserves assessment on the company's producing oil and gas assets within the Cheal (PMP 38156), Cheal East (PMP 60291) and Sidewinder (PMP 53803) permits in New Zealand.

Toby Pierce, CEO commented, "TAG continues to deliver solid reserves results in New Zealand. Further, this is the first year that we have completed an independent reserves assessment in Australia. Based off ERCE's work, the Company has identified several lower risk opportunities on PL-17 to potentially add resources and reserves in the future. Furthermore, TAG continues to work toward closing its transaction with Tamarind on or around July 15, 2019."

Tamarack Valley Energy is a Calgary based oil and gas exploration and production company with operations in the Western Canadian Sedimentary Basin. Tamarack has a market cap of $569 million and approximately 228 million shares outstanding.

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Crescent Point Energy Corp. (CPG:TSX) announced the results of its recent annual meeting. Company reported all director nominees to the Board of Directors of the company and approved all other items of business brought before the meeting. Company also reported the appointment of PricewaterhouseCoopers LLP as Crescent Point's auditor was approved by a show of hands.

Crescent Point is a Calgary based oil and gas company with operations in western Canada. Company has a market cap of $2.4 billion and approximately 550 million shares outstanding.

Frontera Energy Corporation (FEC:TSX) announced on June 17th that the company will be added to the S&P/TSX Composite Index, effective prior to the open of trading on Monday, June 24, 2019. The company is also being added to the S&P/TSX Composite Dividend, S&P/TSX Composite High Dividend and S&P/TSX Capped Energy Index at the same time.

Composite Index is the headline index in Canada and serves as an indicator of broad market activity in Canadian equity markets. It includes the largest and most liquid companies on the Toronto Stock Exchange, as measured by market capitalization and trading volume.

Frontera Energy Corporation is a Toronto based oil and gas company with operations focused in South America. Company has a market cap of $1.06 billion and approximately 98 million shares outstanding.

Surge Energy Inc. (SGY:TSX) announced on June 17th that a cash dividend to be paid on July 15, 2019 in respect of June 2019 production, for the shareholders of record on June 30, 2019 will be $0.008333 per share. The dividend is an eligible dividend for the purposes of the Income Tax Act (Canada).

Surge Energy Inc. is an oil-weighted production and development company based in Calgary. Company has its operations in western Canada. Surge has a market cap of $450 million and approximately 309 million shares outstanding.

Tourmaline Oil Corp. (TOU:TSX) announced on June 17th that it intends to make a normal course issuer bid to purchase its common shares. The NCIB is subject to approval by the Toronto Stock Exchange, and if approved, will be made in accordance with the applicable rules and policies of the TSX and applicable Canadian securities laws. Tourmaline intends to purchase up to 5% of its outstanding common shares over a period of twelve months commencing after TSX approval.

Tourmaline is a Calgary based crude oil and natural gas exploration and production company focused on exploration, development, and production on its properties in the Western Canadian Sedimentary Basin. Company has a market cap of $4.9 billion and approximately 272 million shares outstanding.

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 More news on Oilpatch Review

Quote of the day

T. Boone Pickens, “I've always believed that it's important to show a new look periodically. Predictability can lead to failure.“

 

Did you know?

Oil and gas industry has existed in British Columbia for over 100 years. The first oil well, Akamina #1,  was drilled in the Peace River area in 1909 and was followed by a very active oil and gas exploration. Oil exploration is now being overshadowed by natural gas interest. Unconventional natural gas play discoveries in the Horn River Basin and Montney play are the focus of new development and show great promise.

 

prices compiled and updated on a regular basis by Canadian Insight

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     WCS  / WTI

 Price Spread $18.65

  June 19, 2019

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