For this week’s roundup of local and national news, the oil industry in Canada is not slowing down despite some recent blocks. You can refer to the following news in the energy sector to find out more about this significant niche in the overall Canadian economy today.
First on the news, the Canadian Natural Resources Limited says oil curtailment plans proved to be effective in the energy sector in Alberta:
Oil Curtailment Plans Work – CNRL
Alberta’s crude curtailment plan is working so well to support western Canadian oil prices that it won’t likely be needed for too much longer, say executives at Canadian Natural Resources Ltd.
Furthermore, the profitability of crude-by-rail shipments to the U.S. Gulf Coast is intact and will encourage more export capacity growth, they added on Thursday.
“With curtailments imposed by the Alberta government, market order has been established,” said executive vice-chairman Steve Laut. – Via fortmcmurraytoday.com
The CNRL remarks stand despite the complaints from three energy giants, Imperial Oil Ltd. and Husky Energy Inc., and Suncor Energy Inc. The companies reiterated their crude-by-rail businesses have become unprofitable with the crude restriction.
In other news, the National Energy Board has confirmed giving the expansion of the Trans Mountain pipeline a go:
Green-light for Trans Mountain Expansion Approved – NEB
It is a monumental moment for the Trans Mountain pipeline expansion project.
The National Energy Board (NEB) has announced in its reconsideration report, that the project should be approved.
Now, the federal cabinet will have 90 days to determine whether or not to give final approval to the expansion.
The report focused on the marine impact of the expansion with additional tankers expected to be shipping crude from the west coast. – Via mymcmurray.com
Just a year ago, a court decision put a stop on the project, citing the lack of marine impact assessment as well as indigenous consultation. Despite this, some environmental groups expressed their stand to fight any NEB approval regarding the project.
Finally, oil sector key player, MEG Energy makes a huge and salient move in its product shipment and delivery that could affect the Canadian energy industry:
Plans for Product Shipment by Rail in 2019 – MEG Energy
MEG Energy is planning to ship more of its product by rail this year.
In its latest financial update released on Friday, the Calgary-based company says during the fourth quarter of 2018, they doubled rail volumes from the previous quarter to 14,700 barrels per day, 56 per cent of which were delivered to the U.S. Gulf Coast.
The oil giant estimates rail volumes to average 20,000 barrels per day in the first quarter and 30,000 by the third quarter of 2019.
According to the CEO of MEG Energy, Derek Evans, profitability for the company increased in line with the mandated curtailments in a provincial scale along with the increase in the overall exports of crude in Canada.
Get more relevant news in the oil production and overall energy sector in the different parts of Canada when we come back for our next roundup of news next week.