Canadian Insight

Online oil and gas magazine keeping investors informed ...

Updated on Friday, September 13, 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  — September 13, 2019

Pembina Pipeline Corporation (PPL:TSX) announced that it has agreed with Kinder Morgan Canada Limited to amend and restate the previously announced arrangement agreement dated August 20, 2019.

Upon closing of the transaction, each outstanding KML preferred share of a series will be exchanged for one preferred share of Pembina with the same commercial terms and conditions as that series of KML preferred shares.

Further information regarding the Transaction will be contained in a proxy statement of KML that it will prepare, file and mail to its shareholders in due course in connection with KML voting and preferred special shareholders meetings.

Pembina Pipeline Corporation is a Calgary based transportation and midstream service provider that has been serving North America's energy industry for over 60 years. Pembina owns an integrated system of pipelines that transport various hydrocarbon liquids and natural gas products produced primarily in western Canada. Company has a market cap of $22 billion and approximately 506 million shares outstanding.

Pembina Pipeline Corporation (PPL:TSX) announced that its Board of Directors declared a common share cash dividend for September 2019 of $0.20 per share to be paid, subject to applicable law, on October 15, 2019 to shareholders of record on September 25, 2019.

This dividend is designated an "eligible dividend" for Canadian income tax purposes. For non-resident shareholders, Pembina's common share dividends should be considered "qualified dividends" and may be subject to Canadian withholding tax.

Pembina Pipeline Corporation is a Calgary based transportation and midstream service provider that has been serving North America's energy industry for over 60 years. Pembina owns an integrated system of pipelines that transport various hydrocarbon liquids and natural gas products produced primarily in western Canada. Company has a market cap of $22 billion and approximately 506 million shares outstanding.

Petro-Victory Energy Corp. (VRY:TSX) announced on September 11th that following successful participation and bidding in the Agencia Nacional do Petroleo Gas Natural e Biocombustiveis of Brazil Oferta Permanente 1 held in Rio de Janeiro, Brazil on September 10 2019, Petro-Victory has been awarded 16 new oil concessions in the oil prolific Potiguar Basin of Brazil.

This new acquisition will increase the Petro-Victory Brazil portfolio to 25 oil concessions and represents a 250% increase in acreage. The 16 new oil concessions represent 116,904 acres and are located adjacent to Petro-Victory's operating infrastructure at the Andorinha and Alto Alegre oil fields. The closure and signing date for the 16 oil concessions is expected in Q1 2020, with the initial signature bonus payable on completion estimated to be $0.909 million.

Petro-Victory Energy Corp is a Calgary based international exploration and production company. The company invests in petroleum and natural gas exploration and other energy activities in Latin America. Its projects include Pirity Block. Company has a market cap of $3.6 million and approximately 238 million shares outstanding.

Point Loma Resources Ltd. (PLX:TSX) announced on that it has entered into an agreement with Mackie Research Capital Corporation, as sole agent and sole bookrunner to a private placement basis to raise aggregate gross proceeds to the Corporation of up to approximately $1,500,000. The closing of the Offering is expected to occur on or about September 30, 2019.

Point Loma Resources Ltd. is a Calgary based oil and gas exploration and development company focused on conventional and unconventional oil and gas reservoirs in west central Alberta. Company has a market cap of $13.9 million and approximately 63 million shares outstanding.

                                       * * * * * * *

Alvopetro Energy Ltd. (ALV:TSXV) announced on September 12th an operational update on our Caburé Midstream Project consisting of our 11-kilometre transfer pipeline and our gas treatment facility.

Construction of the Transfer Pipeline commenced with right of way preparation in May 2019. Line pipe has been laid out along 71% of the right of way. Over 42% of the pipe has now been welded and 14% has been installed and buried. The Transfer Pipeline is expected to be completed in the fourth quarter of 2019.

Company's Gas Treatment Facility is being constructed by Enerflex Ltd. where they will construct, own and operate the Facility. Enerflex is responsible for all operations and maintenance of the Facility and is warrantying the delivery schedule and on-stream performance of the Facility. All of the processing skids for the Facility have now arrived in Brazil and the majority have cleared customs and are at the field staging area. Enerflex has commenced field work for the installation of the processing skids.

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.

Kinder Morgan Canada Limited (KML :TSX) announced on September 12th that its parent company, Kinder Morgan, Inc., intends to participate in the JPMorgan U.S. All Stars Conference in London Tuesday, September 17, 2019 and other investor meetings hosted by UBS in London, Geneva, Zurich and Milan Wednesday through Friday, September 18-20, 2019 to discuss the business and affairs of KMI, which may include discussion of KML's business.

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.

Pembina Pipeline Corporation (PPL:TSX) announced on September 12th that it has closed its previously announced offering of $1.5 billion of senior unsecured medium-term notes. Offering was conducted in three tranches consisting of $600 million principal amount of senior unsecured medium-term notes.

The net proceeds will be used to repay short-term indebtedness of the company under its unsecured $1.0 billion non-revolving term loan due March 2021, as well as to fund Pembina's capital program and for general corporate purposes.

Pembina Pipeline Corporation is a Calgary based transportation and midstream service provider that has been serving North America's energy industry for over 60 years. Pembina owns an integrated system of pipelines that transport various hydrocarbon liquids and natural gas products produced primarily in western Canada. Company has a market cap of $22 billion and approximately 506 million shares outstanding.

Jadestone Energy Inc. (JSE:TSXV) announced on September 12th that on September 11, 2019, Iain McLaren, a Non-executive Director of Jadestone, acquired a total of 50,000 common shares of no par value at a price of GBp 48.39 per share, for a total cost of £24,195. In addition, Mr. McLaren effected a transfer of a further 112,870 shares from a trading account to a pension account by way of separate sale and purchase transactions. Mr. McLaren holds 162,870 ordinary shares, which represents a total of 0.04% of the Company's issued share capital.

Jadestone Energy Incorporated is a Singapore based oil and gas company. It has operations and assets in Australia, Vietnam and Philippines. Company has a market cap of $396 million and approximately 461 million shares outstanding.

                                       * * * * * * *

Kinder Morgan Canada Limited (KML:TSX) announced that it has agreed with Pembina Pipeline Corporation to amend and restate the previously announced arrangement agreement dated August 20, 2019 to include the preferred shares of KML in the arrangement transaction.

Upon closing of the transaction, each outstanding KML preferred share of a series will be exchanged for a preferred share of Pembina with the same commercial terms and conditions as that series of KML preferred shares.

The board of directors of KML has unanimously approved the amendments to the proposed transaction and recommends that holders of KML preferred shares vote in favor of the arrangement.

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.

Pembina Pipeline Corporation (PPL:TSX) announced that it has agreed with Kinder Morgan Canada Limited to amend and restate the previously announced arrangement agreement dated August 20, 2019.

Upon closing of the transaction, each outstanding KML preferred share of a series will be exchanged for one preferred share of Pembina with the same commercial terms and conditions as that series of KML preferred shares.

Further information regarding the Transaction will be contained in a proxy statement of KML that it will prepare, file and mail to its shareholders in due course in connection with KML voting and preferred special shareholders meetings.

Pembina Pipeline Corporation is a Calgary based transportation and midstream service provider that has been serving North America's energy industry for over 60 years. Pembina owns an integrated system of pipelines that transport various hydrocarbon liquids and natural gas products produced primarily in western Canada. Company has a market cap of $22 billion and approximately 506 million shares outstanding.

More news on Oilpatch Review

Quote of the day

Peter Lynch, “Trying to catch the bottom on a falling stock is like trying to catch a falling knife”

 

Did you know?

Development of shale gas in Canada remains to be in its early stages directly due to low natural gas prices. Canadian activity in shale gas is primarily focused on the Montney and Horn River Basin plays of northeast British Columbia. Exploratory activities are also taking place at the Utica shale in Quebec, the Horton Bluff shale of New Brunswick and Nova Scotia, and the Colorado group of Alberta and Saskatchewan. 

 

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 $12.50

  September 13, 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