Jeremy van Loon and Rebecca Penty, Bloomberg News/Financial Post, March 23, 2015
The collapse in the market for Canada’s heavy crude below $30 a barrel last week is hammering home a harsh reality for the nation’s oil-sands producers: There’s no one to save them this time.
Unlike previous market crashes that were relatively short- lived, the combination of persistent oversupplies and weakening demand are dealing a severe setback to what’s been one of the biggest growth stories in global energy markets. Oilsands companies such as Suncor Energy Inc. already have been rethinking major developments that can require more than $10 billion in investment. Now even existing projects are barely covering costs or in a losing position. Read the rest of this entry
Spectre of coming cutbacks sends a chill over city sometimes called Fort McMoney
By Terry Reith, CBC News, Jan 17, 2015
Fort McMurray, Alta., the city at the heart of the oilsands, is already seeing signs of a slowdown as the price of oil sinks.
The boom town has weathered many a bust, only to recover and continue its frenzied growth. But this time there are projections that the price drop could be deep and sustained. That’s bad news for the oilsands, where the cost of production is higher than for conventional oil. Read the rest of this entry
Republican-controlled U.S. Congress eager to flex muscles on energy file
By Pete Evans, CBC News, Jan 6, 2015
The White House says U.S. President Barack Obama would veto any legislation that tries to fast-track the Keystone XL project even as Republican lawmakers tabled a bill that would do just that in Washington today.
White House press secretary Josh Earnest said he does not expect Obama would sign any legislation that reaches his desk that would unilaterally approve the project, a 1,900-kilometre pipeline that would bring 800,000 barrels of Canadian crude oil to U.S. refineries every day. Read the rest of this entry
Jim Snyder, Financial Post/Bloomberg News, October 27, 2014
Falling oil prices have energized opponents of the proposed Keystone XL pipeline.
U.S. benchmark crude has tumbled 10% this month, closing at $81.01 a barrel in New York trading last week, and further declines are forecast. At $75, a government analysis said producers may be discouraged from developing Canada’s oil sands without pipelines like Keystone.
“It changes the narrative quite a bit,” Anthony Swift, an international lawyer at the Natural Resources Defense Council in Washington, said of the tumble in crude prices. Read the rest of this entry