Canadian Insight

Online oil and gas magazine keeping investors informed ...

Updated on Tuesday, July 16, 2019

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.

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.

 

 

 

Our most recent ‘Shouts & Toots’  from the Oil Patch  — July 16, 2019

Frontera Energy Corporation (FEC:TSX) announced on July 16th the award of the VIM-22 block in addition to LLA-99 block which was previously announced on June 27, 2019 under the successful Agencia Nacional de Hidrocarburos bid round. Definitive award documentation will be entered into later this month.

Block VIM-22 is adjacent to and on trend with the company's Guama block in the Lower Magdalena Valley region of Colombia. Company has identified multiple play types on the existing 3D seismic on the block and existing infrastructure on the Guama block would result in reduced time from exploration success to commercial production.

Company has identified prospects targeting oil, natural gas and natural gas liquids with plans to start the environmental permitting process as soon as practicable for the first exploration well which is targeted to be drilled in 2021.

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.

Keyera Corp. (KEY:TSX) announced that it expects to release its 2019 second quarter results after market close on Tuesday, August 6, 2019. A conference call and webcast have been scheduled for Wednesday, August 7, 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.

TAG Oil Ltd. (TAO:TSX) announced on July 16th to provide this corporate update on its operations in New Zealand.

TAG and Tamarind Resources Pte. Ltd. are working diligently to close the transaction in a timely manner and have mutually agreed to extend the closing date of the transaction under the share and asset purchase agreement to on or around August 1, 2019.

Final approval from New Zealand Petroleum and Minerals for the sale and transfer of TAG's operatorship to Tamarind of its New Zealand operations is still pending.

TAG Oil Ltd is a Calgary based Canadian oil and gas exploration, development and production company. It operates through three geographical segments including Canada, New Zealand, and Australia. Company has a market cap of $29 million and approximately 85 million shares outstanding.

TORC Oil & Gas Ltd. (TOG:TSX) announced that a dividend of $0.025 per common share will be paid on August 15, 2019 to common shareholders of record on July 31, 2019. The ex-dividend date is July 30, 2019, with payment to be made in cash or common shares at the election of the shareholder. This dividend has been designated as an "eligible dividend" for Canadian income tax purposes.

TORC Oil & Gas Ltd is a Calgary based company engaged in exploration, development, and production of oil and natural gas reserves in the southeast Saskatchewan. Company has a market cap of $1.02 billion and approximately 217 million shares outstanding.

Whitecap Resources Inc. (WCP:TSX) announced that it intends to release its 2019 second quarter results before market open on Thursday, August 1, 2019 and has scheduled a conference call and webcast to begin promptly at 9:00 am MT (11:00 am ET) on Thursday, August 1, 2019. A live audio webcast of the conference call will be accessible on Whitecap's website. Shortly after the live webcast, an archived version will be available.

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.

                                       * * * * * * *

Africa Energy Corp. (AFE:TSXV) announced on July 15th that the joint venture partnership for Block 11B/12B offshore South Africa has entered into a multi-well drilling contract with Odfjell Drilling for the Deepsea Stavanger semi-submersible rig.

Garrett Soden, Africa Energy's President and CEO, commented, "We are very pleased that Total was able to secure the Deepsea Stavanger rig again for the next phase of drilling on Block 11B/12B offshore South Africa. Using the same equipment and crew that drilled the Brulpadda oil and gas discovery earlier this year should save time and reduce cost. We look forward to starting the multi-well drilling program with the spud of the Luiperd Prospect in Q1-2020."

Block 11B/12B is located in the Outeniqua Basin 175 kilometers off the southern coast of South Africa. The block covers an area of 19,000 square kilometers with water depths ranging from 200 to 1,800 meters. The Paddavissie Fairway in the southwest corner of the block includes the Brulpadda discovery and several submarine fan prospects.

Africa Energy Corp. is a Canadian oil and gas company with exploration assets offshore South Africa and Namibia. Company is based in Vancouver. Africa Energy has a market cap of 130 million and approximately 683 million shares outstanding.

Ensign Energy Services Inc. (ESI:TSX) announced on July 15th that it has scheduled to release its second quarter 2019 results before the markets open Tuesday, August 6 2019. A conference call and webcast has been scheduled for 2:00PM MST (4:00PM EST) on Tuesday, August 6, 2019.

A live webcast of the conference call can be accessed via Ensign's website. An archived version of the call will be available shortly after the call ends.

Ensign Energy Services is an oilfield services company headquartered out of Calgary, Alberta, operating in Canada, the United States and internationally. Company has a market cap of $691 million and approximately 157 million shares outstanding.

Surge Energy Inc. (SGY:TSX) announced on July 15th that a cash dividend to be paid on August 15, 2019 in respect of July 2019 production, for the shareholders of record on July 31, 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.

Vermilion Energy Inc. (VET:TSX) announced on July 15th that it will release its 2019 second quarter operating and condensed financial results on Monday, July 29, 2019 before the open of North American markets. The unaudited financial statements and management discussion and analysis for the three and six months ended June 30, 2019 will be available on the System for Electronic Document Analysis and Retrieval.

Vermilion Energy Inc. is a Calgary based international energy producer that seeks to create value through the acquisition, exploration, development and optimization of producing properties in North America, Europe and Australia. Company has a market cap of $4.4 billion and approximately 153 million shares outstanding.

 

More news on Oilpatch Review

 

Quote of the day

Peter Lynch, “Things in humans make them terrible stock market timers. The unwary investor continually passes in and out of three emotional states: concern, complacency and capitulation.”

Did you know?

 In 1858, James Miller Williams drilled the first successful oil well in Canada at Oil Springs, Ontario. He struck oil at 66 feet. It was a year later that Edwin Drake drilled the first oil well in the U.S. at Titusville, Pennsylvania. Drake struck oil at 69 feet. By 1864, there were twenty-seven oil refineries operating in Ontario, twenty near Oil Springs and seven in Petrolia.

 

prices compiled and updated on a regular basis by Canadian Insight

City

 

Victoria

Vancouver

Calgary

Edmonton

Saskatoon

Regina

Brandon

Winnipeg

Hamilton

Ottawa

Toronto

Montreal

Halifax

Moncton

St. John’s

 

 

$ / liter

 

1.409

1.409

0.959

0.939

1.189

1.119

1.119

1.079

1.159

1.179

1.179

1.239

1.119

1.179

1.199

 

Trend

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     WCS  / WTI

 Price Spread $19.15

  July 16, 2019

Text Box: Cross Canada  Gasoline Prices
Text Box:

Disclaimer

Investing in stocks and commodity trading involves risks. ‘Canadian Insight’ and its authors are not responsible for any misinformation, errors or inaccuracies submitted in any news releases, or articles. This site does not imply a guarantee, or warranty that all information on this site is completely accurate even though we take every precaution that is available to eliminate erroneous content. Use of this site is sole responsibility of the user.  

Copyright  © 2019, 2018, 2017, 2016,2015, 2014, 2013, 2012, 2011, 2010, 2009 Canadian Insight