Tuesday, 18 December, 2018

Alberta orders oil production cut to deal with price differential

Canadian Heavy Crude Surges After Alberta Imposes Oil Cuts Canadian heavy crude strengthened the most since June
Rhonda Young | 04 December, 2018, 14:42

The government says the reduction will be in force until excess storage is drawn down, after which it will drop to an estimated average of 95,000 barrels a day.

Output of raw crude oil and bitumen will be reduced initially by 325,000 barrels per day. NY time Monday, the tightest it's been since July, data compiled by Bloomberg showed. WTI itself climbed as much as 5.7 percent, the biggest intraday gain since June, to $53.85 a barrel.

Not all the producers were happy with the Notley's order, with critics arguing that the markets can deal better with prices.

Alberta Premier Rachel Notley is following the advice of producers like Cenovus Energy Inc. and Canadian Natural Resources Ltd., which have been hammered by record low prices for heavy Canadian crude, which at one point were $50 a barrel less than USA grades.

"Every Albertan owns the energy resources in the ground and we have a duty to defend those resources", said Notley.

Announcing the measure on Sunday, Premier of Alberta Rachel Notley said that the province is "facing a hard challenge", but the move is aimed to reverse an unprecedented price gap that has seen the province's crude sell for significantly less than the global price.

Hootie and the Blowfish will make Colorado stop on new tour
The band is returning with a tour and album 25 years after " Cracked Rear View " launched the South Carolina-based rock band. They'll be playing with special guest the Barenaked Ladies, which also had massive hits during the 90s.

The reduction is expected to narrow the differential by at least $4 per barrel, and would add an estimated $1.1 billion in Alberta government royalties in the 2019-20 fiscal year. After that, the government will work to match capacity with production. More rail capacity could ease the midstream burden as well.

Canada has the world's third-largest oil reserves and is the top source of foreign oil for the U.S. Among refiners, HollyFrontier Corp. dropped as much as 6.3 percent in NY and Imperial Oil Ltd. declined 4.4 percent in Toronto. Notley thanked them both in her speech.

"Many of these policies (were) supported either by acquiescence or actively by the NDP government", said Kenney.

"We have set out a 10,000 barrel [a day] exemption for all producers". Each company's level of curtailment will be based on six months of its highest level of production over the past 12 months, according to the statement. The province estimates 25 producers will have to impose cuts.

Alberta's pipeline woes have spurred governments to seek out ways to help get their oil to market.

Notley announced the province will impose across-the-board cuts amounting to 8.7 per cent of output to reduce a growing glut of oil that is forcing Alberta oil to sell at steep discounts compared with the North American benchmark.

Tumblr to Permanently Ban All Adult Content from Platform
That discovery led Apple to, unsurprisingly, remove Tumblr from the App Store altogether. Tumblr has been struggling with adult content.

Reaction to the curtailment from United Conservative Party leader Jason Kenney and Alberta Party leader Stephen Mandel was swift.

About the only dissenting voice has come from Canada's integrated oil companies, whose refineries have been benefiting from the cheaper feedstock.

The decision by Notley to curb oil supplies marks the most substantial market intervention in decades, and comes after discounts for Canadian heavy oil breached US$50 in recent months, the highest on record.

Dan McTeague with GasBuddy.com says B.C. drivers shouldn't be anxious about to fill up their vehicles because our gasoline is made up of a blend of many different oils.

Pourbaix's statement says the measures will help balance the market for now until new rail and pipeline capacities become available. That plan entails running two additional trains a day, each pulling 100 to 120 cars. At present, 97 percent of Canadian oil exports go to the US, which is awash with oil.

To contact the reporter on this story: Kevin Orland in Calgary at korland@bloomberg.net.

Leaked messages convince Central Intelligence Agency that Mohammed bin Salman ordered Khashoggi killing
The Saudi crown prince's visit to Algeria has drawn criticism from political and academic circles in the North African country. With pomp reserved for heads of state, Algerian Prime Minister Ahmed Ouyahia greeted bin Salman on the tarmac late Sunday.

Recommended

  • Jurgen Klopp: Liverpool manager charged with misconduct for derby celebration

    Jurgen Klopp: Liverpool manager charged with misconduct for derby celebration

    The midfielder went down injured during injury time and the extra time added on helped the Reds' cause. And then you see that there's backspin and you see the ball hits the crossbar.
    Arkansas bus crash: 1 child killed, 40 others injured

    Arkansas bus crash: 1 child killed, 40 others injured

    During questioning, the driver told police she lost control of the vehicle, state police said in a statement . He was sitting in the first row when he said the bus swerved and then flipped numerous times.
    Various departments team up, educate on World AIDS Day

    Various departments team up, educate on World AIDS Day

    Anyone who is interested in PrEP can contact the Jackson County health department for more information. HIV wouldn't be identified as the virus causing AIDS until 1984.
  • Fans Spot 'Proof' I'm A Celeb Is Scripted

    Fans Spot 'Proof' I'm A Celeb Is Scripted

    Ardent I'm A Celebrity fans have been accusing ITV of a fix after spotting a recurring pattern during the evictions. He was helped into the medical hut by Nick Knowles and Malique Thompson-Dwyer, and then assessed by jungle medics.
    Bulls fire head coach Hoiberg

    Bulls fire head coach Hoiberg

    With 33 years of coaching experience, that includes 20 seasons in the NBA, Boylen has been a part of three NBA Championship teams. The 7-foot Markkanen is perhaps the centerpiece of Chicago's rebuilding plan, but Hoiberg won't be around to see it through.
    Friends Netflix Streaming is Still Available For Now

    Friends Netflix Streaming is Still Available For Now

    Netflix spent an estimated $8 billion on content this year in an effort to have 1,000 original shows and movies on the service. To this day, Netflix is the sole platform in which Friends can be streamed (although it remains widely syndicated on real TV).
  • Usman Khawaja calls for privacy after police arrest and charge brother

    Usman Khawaja calls for privacy after police arrest and charge brother

    He was released only weeks later, when police figured out the script did not match his handwriting. He said acting early to prevent a potential terrorist threat was critical.
    Mike Ashley may have scuppered Newcastle takeover with interview on Sky News

    Mike Ashley may have scuppered Newcastle takeover with interview on Sky News

    There has been disgruntlement among many fans about the level of transfer funds available to the club's manager Rafa Benitez. Speaking on Sky News , Ashley said he was hopeful a deal could be concluded before the end of the year.
    The Redskins Announced That Colt McCoy’s Season Is Over

    The Redskins Announced That Colt McCoy’s Season Is Over

    McCoy was declared out for the game coming out of halftime, and the latest report from ESPN's Lisa Salters shared the bad news. Sanchez, signed two weeks ago, played for the first time since January 1, 2017, when he was with Dallas.
  • Marvel Studios Working On Shang-Chi Feature Film

    Marvel Studios Working On Shang-Chi Feature Film

    He's raised in isolation from the rest of the world in Honan, China, where he becomes superhero-level good at martial arts. The film will feature the studio's first Asian protagonist.

    Australian cricketer Usman Khawajas brother arrested over terror hit list

    Mr Willing said: "We regret the circumstances which led to him being charged and the time he subsequently spent in custody". Willing added that police believe Khawaja orchestrated the set up and may have been motivated by a dispute over a woman.
    Patrick Cantlay & Patrick Reed three ahead, Tiger Woods eight back

    Patrick Cantlay & Patrick Reed three ahead, Tiger Woods eight back

    Tiger Woods was relieved to avoid a one-shot penalty for a double-hit after a long discussion with officials in the Bahamas. But the result in the first round was more like the Tiger Woods of 2014-17 - unspectacular and borderline cringeworthy.

Israel launches military operation against 'Hezbollah tunnels' Israel launches military operation against 'Hezbollah tunnels' Israel has accused Iran of supporting Hezbollah with money and arms to continue fighting in Syria and retain its power in Lebanon. The military did not disclose how many tunnels snake into Israeli territory from Lebanon or how long the operation would last.

Mourinho responds to reports of world-record Koulibaly bid Mourinho responds to reports of world-record Koulibaly bid Former Premier League star turned pundit Jermaine Jenas thinks Mourinho's time is up. United could only manage an underwhelming 2-2 draw with Southampton yesterday.

Tesla on Autopilot Drove 7 Miles With Drunk Driver Sleeping Tesla on Autopilot Drove 7 Miles With Drunk Driver Sleeping CHP issued a statement that said officers couldn't confirm which technology was active - but clearly the driver was not. All in all, it took about seven miles and seven minutes for the Tesla to come to a stop in the right hand lane.

National Lampoon-themed Christmas display causes panic National Lampoon-themed Christmas display causes panic After a few moments pass by, the passer-by can be heard yelling for help to people passing by - then called emergency services. The Heerlein family has thanked the passer-by for trying to save the hanging "man" with a $500 gift card.

Massive data breach at Quora Massive data breach at Quora The tech site also said it already took steps to "contain the incident" and prevent future unauthorized access to its servers. Potentially affected users have been logged out and their passwords invalidated.

Christmas FM says it hasn't banned 'Baby, It's Cold Outside' this year One line, "Say what's in this drink?" When the woman says "the answer is no" the man responds: "But baby, it's cold outside ". The controversy over political correctness with the song has picked up in recent years, especially after the #MeToo movement.

Pete Davidson hits out at 'bullies' following Ariana Grande split The star finished his message by saying: "To all those holding me down and seeing this for what it is - I see you and I love you". And Grande included an apology for Davidson in her music video for "Thank u, next," with a message reading, "sry I dipped".

Cameron Smith moves three shots clear at Australian PGA Championship Cameron Smith moves three shots clear at Australian PGA Championship I'm sure we'll have a beer over Christmas or when I see him next and we'll be back to being mates. England's Ross McGowan shot a course-record 63 to finish tied for third, five strokes behind.

Shocking! CCTV shows crime chaos at Sasol garage after Global Citizen Festival Shocking! CCTV shows crime chaos at Sasol garage after Global Citizen Festival Beyonce and Jay-Z are amongst the group of musicians in Johannesburg for Global Citizens Festival: Mandela 100 . It says many people won tickets to Sunday's concert through charity work and petition-signing.

Trump seeks Pakistan’s support in peace talks with Afghan Taliban Trump seeks Pakistan’s support in peace talks with Afghan Taliban Khalilzad has recently engaged the Taliban in direct talks to try to initiate Afghan peace negotiations. Trump's request follows a month of often harsh presidential language about Pakistan.

Twisted Firestarters: Indian Woman Set Ablaze by Molesters, Police Apathetic Twisted Firestarters: Indian Woman Set Ablaze by Molesters, Police Apathetic Rights groups have ¨said because of police apathy and pressure from local politicians, many investigations get buried. The three officers who turned the woman away have been suspended for "neglecting" their duty.

Huskers fight past IL 75-60 in Big Ten opener Huskers fight past IL  75-60 in Big Ten opener Not only is Nebraska 7-1 on the season and 1-0 in the Big Ten, but now, NU is starting to get some national recognition. Giorgi Bezhanisshvili led IL with 14 points before fouling out late in the second half.

After ‘The Handmaid’s Tale’ references, Melania Trump defends her red Christmas trees After ‘The Handmaid’s Tale’ references, Melania Trump defends her red Christmas trees In 1923, President Calvin Coolidge ordered the first White House tree to usher in the holidays . That's right, Amazon is selling real live trees and shipping them right to your door for free.

Hunt Has More Allegations Hunt Has More Allegations The league also has been investigating an incident involving Hunt allegedly punching a man in the face at an OH resort in June. Unfortunately for Hunt and the people he comes into contact with, that wasn't the only reason he was back in the headlines.

UEFA Nations League draw UEFA Nations League draw For now, Southgate has to continue to operate in the current circumstances and plan for the Nations League climax next June.