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Feb 15, 2012

Cenovus profit soars as partner search extended

Feb 15 (Reuters) – Cenovus Energy Inc,
Canada’s No. 2 independent oil producer, said on Wednesday its
quarterly profit tripled on production gains as it again
extended its hunt for a joint-venture partner for a planned
Alberta oil sands development.

The company, known for its oil sands production and U.S.
refining joint ventures with ConocoPhillips, is looking
for a partner for its proposed 90,000 barrel per day Telephone
Lake project.

Feb 14, 2012

TransCanada again extends Keystone XL schedule

CALGARY, Alberta (Reuters) – TransCanada Corp (TRP.TO: Quote, Profile, Research, Stock Buzz), the backer of the Keystone XL pipeline project, said on Tuesday it still intends to build the controversial $7 billion line even as it again pushed back its already delayed schedule.

The company, which reported a 39 percent rise in net income on Tuesday, and boosted its dividend by 4.8 percent, said it expects to have the 830,000 barrel Alberta-to-Texas line up and running by early 2015 after last estimating it could be operating by late 2014.

Feb 7, 2012

Canadian Natural’s oil sands plant off line-source

CALGARY, Alberta, Feb 7 (Reuters) – Canadian Natural
Resources Ltd’s Horizon oil sands plant in northern
Alberta is shut down for unplanned repairs and could be off line
for two to three weeks, a source with knowledge of the situation
said on Tuesday.

The outage pushed up U.S. oil prices and pressured Canadian
Natural shares, which fell as much as 5.2 percent. By early
afternoon they were down C$1.69, or 4.2 percent, at C$38.59 on
the Toronto Stock Exchange.

Feb 3, 2012

Canada, Alberta seek to assuage oil sands critics

CALGARY, Alberta (Reuters) – Canada will set up a new environmental monitoring system for the northern Alberta oil sands as it seeks to fend off harsh international criticism following revelations that oversight of the huge petroleum development has been insufficient.

The federal and the Alberta provincial governments said on Friday the new plan that will boost water sampling and increase information available to the public.

Jan 16, 2012

Pembina to buy Provident Energy for $3.16 billion

CALGARY, Alberta (Reuters) – Pembina Pipeline Corp (PPL.TO: Quote, Profile, Research, Stock Buzz) agreed on Monday to buy Provident Energy Ltd (PVE.TO: Quote, Profile, Research, Stock Buzz) for C$3.24 billion ($3.16 billion) in an all-stock deal that will create one of Canada’s biggest pipeline and natural gas processing companies.

Calgary-based Pembina, a regional pipeline company operating in Alberta and British Columbia, will pay Provident shareholders 0.425 of a share for each share of Provident.

Jan 10, 2012

Nexen shares jump 9 percent after CEO replaced

CALGARY, Alberta (Reuters) – Shares of Nexen Inc (NXY.TO: Quote, Profile, Research, Stock Buzz) surged 9 percent on Tuesday, a day after the Canadian oil and gas company announced it had replaced Chief Executive Marvin Romanow and the head of its domestic operations.

Nexen shares were up C$1.53 at C$18.60 by midday on the Toronto Stock Exchange on optimism over the company’s outlook and on expectations the stock price will improve under new management after Romanow failed to prove to investors that he could fix a number of costly operational issues.

Dec 7, 2011

Enbridge pipeline deal with native group fraying

CALGARY, Alberta (Reuters) – A deal with a native chief that Enbridge Inc held up last week as an example of rising support of their planned oil pipeline to the Pacific appears to be unraveling as the community battles over who has the authority to negotiate.

Enbridge touted the Gitxsan agreement to take an equity stake in the Northern Gateway pipeline as the first public display of what it says is substantial support for the C$5.5 billion ($4.5 billion) project among British Columbia’s First Nations, the aboriginal groups whose traditional territories make up vast swaths of the province.

Nov 16, 2011

TransCanada may go ahead with Cushing to Gulf link

CALGARY, Alberta (Reuters) – TransCanada Corp said on Wednesday it could start building the portion of the Keystone XL pipeline plan that runs from Cushing, Oklahoma, to the Gulf of Mexico, even as it awaits U.S. approval for the project as a whole.

The company said its customers are eager for a way to move oil from the glutted Cushing storage hub to the Gulf Coast, where refineries are paying a premium for crude.

Nov 16, 2011

Canada pipeline firms sprint to end US oil glut

HOUSTON/CALGARY Nov 16 (Reuters) – Two major pipeline
projects announced on Wednesday looked set to bring a
surprisingly swift end to an unprecedented distortion in the
U.S. oil market, unclogging a year-long bottleneck that has
weighed heavily on Midwest crude prices.
After purchasing ConocoPhillips stake in the
350,000 barrel per day Seaway pipeline for $1.15 billion,
Enbridge and new partner Enterprise Products Partners
said they plan to reverse the lines flow to send crude locked
up at the Cushing, Oklahoma oil hub to the Texas coast.
Separately, rival TransCanada said it could begin
construction of a similar $600 million Cushing to Gulf Coast
pipeline spur of its proposed Keystone XL pipeline early next
year, pending consultations with the U.S. State Department,
which last week postponed approval of the full-length
Canada-to-Texas line to study a new route.
The companies are racing to unlock a glut of crude in the
U.S. Midwest, which has built up over the year due to rising
supplies from Canada and North Dakota, and ship it to the Gulf
Coast where it will fetch a hefty premium. Doing so will rob
mid-continent refiners like CVR Energy of cheap crude,
but help producers achieve a higher price for their output.
Oil traders reacted swiftly to the news. U.S. crude surged
by nearly $2 a barrel while Brent crude remained $1 lower –
narrowing the so-called Brent/WTI spread to below $10 a barrel
for the first time since April. The spread, rarely more than a
few dollars in past years, ballooned to $28 in October.
The reversed Seaway line could be in service at an initial
capacity of 150,000 bpd by the second quarter of 2012, Enbridge
said. Station additions and modifications needed to ramp up
flow rates to 400,000 bpd will be completed by early 2013.
Enbridge’s acquisition of the stake in Seaway is expected
to be completed in December, ConocoPhillips said. Conoco, which
traders said had resisted pressure to reverse the line because
its mid-continent refiners were benefiting from the cheaper
feedstock, had already said it was selling its stake.
TRANSCANADA TO PURSUE CUSHING-TO-GULF PLAN
TransCanada also sought to rally back from the crushing
delay to its $7 billion Keystone XL pipeline, which had faced
an upswell of environmental resistance. Unable to build the
cross-border portion of the line without State Department
approval, the firm now looked set to build a much shorter but
critical leg connecting the Cushing hub to the Gulf Coast.
Alex Pourbaix, president of the company’s oil pipelines
division, said TransCanada is hearing from shippers that they
would like construction of the line to proceed even as it waits
for full approval of Keystone late next year or in 2013.
Inventories in the U.S. Midwest have swelled this year due
to rising supplies from Canada and North Dakota, helping to
drive the premium of Brent crude to U.S. oil futures to record
highs over $28 a barrel in October.
In another deal, Conoco also said it will sell its 16.55
percent interest in Colonial Pipeline Co and Colonial Ventures
LLC to a subsidiary of pension fund Caisse de Depot et
Placement du Quebec for $850 million.
Caisse, Canada’s largest pension fund administrator with
C$199 billion in assets under management is among the Canadian
pension funds who are increasingly looking toward direct
investments in the resources sector, having emerged from the
global financial crisis as some of the world’s most
deep-pocketed private equity investors.
Conoco’s pipeline deals, part of its strategy to shed
assets it no longer considers strategic, totaled $2 billion,
the U.S. oil company said.
The deals are part of the company’s effort to improve its
valuation with up to $20 billion of asset sales targeted to
properties the company no longer considers strategic. Conoco,
the third largest U.S. oil company, also has plans to spin off
its refining assets next year.

Nov 9, 2011

Enbridge CEO says Wrangler line likely to proceed

CALGARY, Alberta, Nov 9 (Reuters) – Enbridge Inc
said on Wednesday it will likely proceed with its 800,000
barrel per day Wrangler pipeline from the Cushing storage hub
in Oklahoma to Gulf of Mexico refineries as the U.S. State
Department raised the threat of a lengthy delay in TransCanada
Corp’s Keystone XL pipeline.

Pat Daniel, Enbridge’s chief executive, said his company
and partner Enterprise Product Partners have received
strong interest from would-be shippers on the line.

    • About Scott

      "Based in Calgary, Alberta, I've covered Canada's energy industry and the oil sands for the past five years for Reuters, and a decade before that for newspapers and other wire services."
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