Canadian Insight

Online oil and gas magazine keeping investors informed ...

Updated on Thursday, July 22, 2021

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 paticular 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.

 

Supreme Court Ruling on Canada’s carbon tax introduces very serious implications March 31, 2021

Last week’s  Supreme Court ruling that the federal government has the legal right to tax carbon emissions has very serious implications.

This ruling has made it legal for the federal government to encroach on provincial rights to tax and infringe on provincial jurisdiction to govern.

It is viewed by Western Canadians as another demonstration by the federal government to refuse to listen and alienate the west even further.

Some political pundits fear that this decision by the Supreme Court will help push Alberta and Saskatchewan to separation from Canada.

 

CP Railway announces takeover of Kansas City Southern  — March 23, 2021

Canadian Pacific Railway announced that it will proceed to takeover Kansas City Southern Railway. The proposed  deal is worth US $25 billion.

The resultant merger would make a railway network expanding from Canada into the US Gulf states and Mexico.

The merger could impact the crude by rail volumes and increase movement of Canadian crude oil into the Gulf coast refineries.

The cancellation of Keystone XL project has stopped expansion of crude oil sales into southern US and exports into the global marketplace.

The business combination of the two railways is expected to pass by US and Canadian regulators by second quarter of 2022.

 

Energy Information Administration predicts US will import more oil than it exports in 2021 &  2022—February 18, 2021

 Energy Information Administration reports that  US crude oil imports are expected to increase in 2021 and 2022. This is a reversal to 2020 when US was exporting more crude oil then it had imported.

EIA predicts that US will increase its crude oil imports from 2.7 million barrels per day in 2020 to 3.7 million barrels per day in 2021 and 4.4 million barrels per day in 2022.

US crude oil production had declined in 2020 by 0.9 million barrels per day in 2020. EIA expects will average at 11.3 million barrels per day in 2021 and rise to 11.9 barrels per day by the end of 2022. This is still lower than the peak in 2019 which reached 12.9 million barrels per day.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Our most recent ‘Shouts & Toots’  from the Oil Patch  — July 22, 2021

Alvopetro Energy Ltd. (ALV:TSXV) announced details of its upcoming Annual General and Special Meeting. The Meeting will be held on Thursday August 12, 2021, beginning at 2:00 pm. To proactively deal with the COVID-19 pandemic and to mitigate potential health and safety risks, the Meeting will be conducted via webcast. Alvopetro's management and directors believe this format will provide shareholders a safer opportunity to attend the Meeting given ongoing restrictions on travel and public gatherings as well as health concerns.

Shareholders will be asked to approve complete a consolidation of the issued and outstanding common shares at a ratio of 2,100 pre-consolidation shares for every 1 post-consolidation share effective on a date as determined by the Board in its sole discretion.

Alvopetro Energy Ltd. is an International oil and gas company with offices in Calgary and operations in Brazil. Company has a market cap of $35 million and approximately 97 million shares outstanding.

Avanti Energy Inc. (AVN:TSX) announced on July 22nd that it has entered into an agreement to acquire 15 new Montana gross sections with multiple structural closures. The new sections are in addition to Montana lands acquired earlier this year that are highly prospective for potential helium extraction. The company is moving forward to complete final due diligence.

"The acquisition of these sections is very exciting and fits within our strategy of acquiring targeted land packages that are highly prospective for helium development," commented Chris Bakker, Avanti Energy CEO.

Avanti Energy Inc. is a Vancouver based energy company focusing on developing helium reserves in Canada and US. Company has a market cap of $27 million and approximately 21 million shares outstanding.

Crescent Point Energy Corp. (CPG:TSX) announced plans to report its second quarter 2021 financial and operating results via press release prior to the opening of markets on Wednesday, July 28, 2021. Crescent Point's management will hold a conference call at 10:00 a.m. MT (12:00 p.m. ET) the same day to discuss the Company's results and outlook. Participants can listen to this event online via webcasst. The webcast will be archived for replay and can be accessed on Crescent Point's conference calls and webcasts webpage under the invest tab.

Crescent Point is a Calgary based oil and gas company with operations in western Canada. Majority of its assets are in Saskatchewan. Company has a market cap of $2.9 billion and approximately 550 million shares outstanding.

Gear Energy Ltd. (GXE:TSX) announced on July 22nd that its common shares have qualified for trading on the OTCQX Market operated by the OTC Markets Group Inc. Gear's common shares previously traded through the OTC's Pink market. Upgrading to the OTCQX Market is expected to provide more transparent trading for Gear's U.S. investors.

Gear Energy limited is a Calgary based oil and gas company with operations and assets in western Canada. Company has a market cap of $158 million and approximately 219 million shares outstanding.

Tidewater Midstream and Infrastructure Ltd. (TWM:TSX) announced the creation of Tidewater Renewables Ltd. as a wholly owned subsidiary. Tidewater Renewables has been formed to become a multi-faceted, energy transition company focusing on the production of low carbon fuels. The creation of and the initial public offering of Tidewater Renewables is a result of a thorough evaluation of financing alternatives with the goal of funding Tidewater Renewables' portfolio of clean fuel projects while allowing Tidewater Midstream to continue to deleverage through 2021.

Tidewater Midstream and Infrastructure Limited is a Calgary based company engaged in providing infrastructure and natural gas storage facilities in North America. Company has a market cap of $447 million and approximately 331 million shares outstanding.

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Falcon Oil & Gas Ltd. (FO:TSX) announced on July 20th its 2021 work program. Work activity has focussed on the continued clean-up of Kyalla 117 in preparation for extended production testing, using nitrogen to support operations. On 22 June 2021, operations recommenced at Kyalla 117 N2-1H ST2 in the Beetaloo Sub-Basin, Northern Territory, Australia. This has allowed the Kyalla 117 well to begin flowing again but there is evidence of a potential downhole flow restriction. Operations will now be temporarily paused while the cause of the restriction is investigated.

In the meantime, the JV’s focus will continue on other elements of the work program. The JV remains on track to drill the Velkerri 76 well and commence a further extended production test at Amungee NW 1H in the coming weeks.

Falcon Oil & Gas Ltd is an international oil & gas company based in Dublin Ireland. Company is engaged in the exploration and development of unconventional oil and gas assets, with the current portfolio focused in Australia, South Africa and Hungary. Falcon Oil & Gas Ltd has a market cap of $113 million and approximately 69 million shares outstanding.

Gear Energy Ltd. (GXE:TSX) announced that the new June 2021 monthly update can be accessed via the following link https://gearenergy.com/updates.

Gear Energy limited is a Calgary based oil and gas company with operations and assets in western Canada. Company has a market cap of $158 million and approximately 219 million shares outstanding.

Keyera Corp. (KEY:TSX) announced that it expects to release its second quarter 2021 results before markets open on Thursday, August 5, 2021. The release will be followed by a conference call and webcast that have been scheduled for Thursday, August 5, 2021 at 8:00 AM Mountain Time (10:00 AM Eastern Time). A live webcast of the conference call can be accessed through Keyera's website at http://www.keyera.com/news/events.

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.

New Zealand Energy Corp. (NZ:TSXV) announced the completion of the 71 sq km Tariki 3D Seismic Survey undertaken to both assess the potential for a gas-storage facility in the south of the field and appraise possible by-passed gas locations. The Tariki 3D is a high resolution seismic survey. Downhole geophones were also deployed in well Tariki D1 while shooting the full survey area in order to improve resolution of fault compartments within the field.

The Directors also announce the Company has entered into a CAD $2,000,000 Convertible Loan Agreement with Arizona Finance Limited. The agreement is for a term of 1 year, at 10% interest rate per annum, convertible to NZEC shares at the Lender's option. The conversion price has been set at the close of business on July 19th 2021 at CAD $0.30 per share.

New Zealand Energy Corporation is an oil and gas company based in Wellington, New Zealand. Company has market cap of $2.3 million and approximately 232 million shares outstanding.

PetroTal Corp. (TAL:TSX) announced on July 20th an operational update for Q2 2021. All currency amounts are in United States dollars. Q2 2021 production averaged 8,825 barrels of oil per day which was 2% higher than guidance of 8,655 bopd. PetroTal commenced drilling a second water disposal well, 3WD, on May 3, 2021. It was successfully completed on July 9, 2021. Drilling of the next horizontal development well ("BN-8H") commenced on July 12, 2021, and is expected to cost $12.25 million. The well will take approximately 53 days to drill and complete. Company expects that, upon completion of the BN-8H and fixing the water pumping disposal capacity, to ramp production to over 13,000 bopd and meet Q3 2021 average production guidance of 11,750 bo

PetroTal Corporation is a Calgary based international oil and gas company. It has assets and operations in Peru. Company has a market cap of $140 million and approximately 538 million shares outstanding.

More news on Oilpatch Review

 

Quote of the day

Alex Haley, "Anytime you see a turtle up on top of a fence post, you know he had some help."

 

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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St. John’s

 

 

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1.379

 

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     WCS  / WTI

 Price Spread -$13.16

  July 22, 2021

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