Energy News Digest

Alberta's Big Day
Calgary Herald – March 10, 2010

Around 3 PM MST we're going to get the goods on the latest Alberta land sale, where an area the size the Netherlands is up for bid. Speculation is rampant that EnCana, Shell, Esso or all of the above are going to be blowing their brains out over a potential new shale play. Read more…

Saskatchewan, Manitoba working together on green power development
Regina Leader Post – March 9, 2010

The governments of Manitoba and Saskatchewan have agreed to establish a working group to find ways to increase electrical power transmission capacity of the two provinces by 150 megawatts (MW). Read more…

Chevron to shed 2,000 jobs this year
CTV – March 9, 2010

Chevron Corp. said Tuesday it will cut 2,000 jobs this year and sell some overseas operations as it revamps its struggling refinery, marketing and transportation operations. Read more…

Saskatchewan's turbulent times
Vancouver Sun – March 9, 2010

Bill Boyd oversees the whole industry as the province’s minister of energy and resources. He talked with the Financial Post’s Peter Koven about the turbulent times in Saskatchewan’s mining sector. Read more…

Alberta royalty changes on tap
Globe and Mail – March 9, 2010

The provincial competitiveness review, which has not yet received full cabinet authorization, is expected either Thursday or Friday, industry sources said Tuesday. The report will be released in Calgary. Read more…

Ontario bolsters green support as Europe backs off
Reuters – March 9, 2010

Ontario, Canada's most populous province, "is very small at the moment, but growing very quickly, with great potential as well. It has loads of open space and good feed-in tariffs, which make developing more attractive," Read more…

U.S. lawmakers urge scrapping of NAFTA
Vancouver Sun – March 9, 2010

New York Senator Charles Schumer this week introduced Buy American amendments into a green energy bill. It was aimed at requiring only U.S.-made equipment be used in power plants fuelled by renewable energy, such as wind. Read more…

NovaGold, Teck More Likely to Develop Galore Creek
Blooomberg – March 9, 2010

NovaGold Resources Inc. and Teck Resources Ltd., assessing plans to dig the delayed Galore Creek project, are more likely to proceed with the mine because of rising Asian demand and falling costs, a NovaGold official said. Read more…

Offshore energy fuels job growth
Vancouver Sun – March 8, 2010

The oil industry took a beating in the recession, but changing economic conditions and the world's insatiable thirst for black gold, means job openings are starting to roll in again in regions ranging from Alberta's oilsands and the Prairies to the chilly waters of the North Atlantic. Read more…

Athabasca IPO paves the way for other juniors
Globe and Mail – March 9, 2010

Athabasca Oil Sands Corp. isn't the only party awaiting the results of the initial public offering the company unveiled last week. The success of the IPO could float the boats of other junior oil sands stocks - notably UTS Energy Corp. Read more…

Oil plays tell their story in China
Globe and Mail – March 9, 2010

OPTI Canada is attempting to capitalize on Asian interest in Alberta energy plays trigger by the planned IPO from Athabasca Oil Sands. Read more…

Crude's rise lifts Calgary oilpatch's spirits
Calgary Herald – March 9, 2010

"I think what is probably happening is that there is some increasing confidence that the U.S. economy is turning around . . . and that in the next three to six months there will be some real restocking of both manufactured goods and basic raw materials across the U.S. economy," said Patricia Mohr, Scotiabank commodity economist in Toronto. Read more…

Ethanol juiced for a comeback
Calgary Herald – March 9, 2010

demand is rebounding because ethanol is almost 66 cents cheaper than gasoline, the biggest discount in 14 months. Read more…

A conventional fuel, an unconventional future
Globe and Mail – March 8, 2010

Natural gas is also Canada's highest net-revenue-generating export. The unlocking of unprecedented new supplies heralds continued growth into the long-term future, and that future is unconventional. Read more…

Natural gas and its 'drill baby, drill' conundrum
Calgary Herald – March 8, 2010

The seismic shift in the North American natural gas business continues. Facilitated by innovations in oilfield services, new and vast sources of natural gas persist in supplanting traditional, higher-cost plays. Read more…

A quiet giant moves in
Globe and Mail – March 8, 2010

Canada's wind energy market has attracted NextEra Energy, a big American player, which has set its sights on growth in Ontario, citing policies like the province's 'feed-in tariff' that guarantees prices and long-term contracts. Read more…

Palin urges U.S., Canada to cooperate on energy
China Post – March 8, 2010

Palin, 46, who attracted a crowd of about 1,200 people in Calgary, said a proposed gas pipeline from Alaska connecting to systems that cross western Canada would provide “clean, green” energy to the lower 48 states for decades and reduce reliance on foreign suppliers. Read more…

Europe the new frontier in shale gas rush
Financial Times – March 8, 2010

The world's biggest, richest and most sophisticated energy companies believe that they may be able to repeat the American shale gas revolution in Europe, potentially undermining the power of Russia, the region's biggest gas supplier. Read more…

Oil pares gain after hitting 8-week high
Calgary Herald – March 8, 2010

Oil rose towards US$82 a barrel on Monday, but pared an earlier gain to an eight-week high, supported by a weaker dollar and signs of economic recovery in top oil consumer the United States. Read more…

Mining conference reveals sector’s renewed optimism
Vancouver Sun – March 7, 2010

Spirits are very high at the Prospectors and Developers Association of Canada conference, which kicked off Sunday in Toronto, as experts offer up generally bullish views on commodity markets for the year ahead. Read more…

Energy sector reports strong growth
Vancouver Sun – March 6, 2010

Last year's recession appears to have caused only a temporary dip in demand for engineers across Canada. Read more…

NEB approves Horn River tie-in pipeline to Nova system
Calgary Herald – March 5, 2010

The pipeline would extend from the existing Gordondale meter station on the Alberta system, 11 kilometres east of Bay Tree, Alta., to a station in the Groundbirch area 37 kilometres northwest of Dawson Creek, B.C. Read more…

Jolt for declining towns
National Post – March 5, 2010

Last month, Ontario Premier Dalton McGuinty announced a $6.7-billion agreement with Samsung C&T Corp.'s Trading and Investment Group and Korea Electric has Corp. to generate solar and wind power in the province. It will be months before there are any spades in the ground on the clean-energy deal, but the fight for the business by mayors across southern Ontario is getting down and dirty. Read more…

Husky: The next big spin-out?
Globe and Mail – March 5, 2010

Husky brass gave a presentation to analysts this week that pointed to the potential for a corporate split that would see the Calgary-based company’s portfolio of Asian assets spun out as an independent publicly traded entity. Read more…

Energy players welcome reduction in red tape
Calgary Herald – March 5, 2010

The Tories will shift responsibility for energy project environmental assessments to the National Energy Board from the Canadian Environmental Assessment Agency, a bureaucracy-cutting decision that won kudos from the Canadian Energy Pipeline Association. Read more…

Tories pledge faster resource project reviews
Vancouver Sun – March 5, 2010

B.C. has been arguing that several billion dollars' worth of resource sector projects are unreasonably delayed because proponents must often duplicate their work. Read more…

Upgrader in cards for Canadian Natural
Calgary Herald – March 5, 2010

Canadian Natural Resources Ltd. has bucked industry trends to support -- in theory -- a plan to build an upgrader for a future Horizon oilsands project expansion, while casting a wary eye on the future of light-heavy oil differentials. Read more…

Enbridge testing gas storage in Ontario
Calgary Herald – March 5, 2010

An eye on growing shale gas production that could flow north from the United States has prompted Enbridge Inc. to announce a nonbinding open season for gas storage in Ontario. Read more…

Canada regulator OKs TransCanada shale gas plan
Reuters – March 5, 2010

Regulators on Thursday conditionally approved TransCanada Corp's plan for a $200 million pipeline, the first federally regulated shale gas transport system in Western Canada. Read more…

Rising oil sands costs 'a worry'
Globe and Mail – March 5, 2010

As energy giants rush back into the oil sands, surging demand for labour and equipment threatens to drive construction costs skyward once again. Read more…

Fairy tale realm no place for oilsands
Calgary Herald – March 5, 2010

When the special Oscar edition of the Hollywood trade publication, Variety, hits the stands today, it will contain a full-page ad presumably lobbying for Avatar to win the honours for best picture because of its apparent link to the oilsands. Read more…

Wind energy sector laments loss of incentives
Calgary Herald – March 4, 2010

Canada's wind energy industry said the budget's failure to continue a federal incentive program for new projects will lead to jobs and investments heading to the U.S. Read more…

Oil patch is a fertile field for acquisitions as hope in energy sector stays strong
Globe and Mail – March 4, 2010

In an oil patch that has grown into an international darling for energy investors, Canada's deal makers have their eye on a single number as they look to the year ahead: 10. That is, in rough terms, the percentage of natural gas production in the entire gas-rich Western Sedimentary Basin that is currently for sale. Read more…

Ottawa intends to relax uranium rules
Globe and Mail – March 4, 2010

The push to increase foreign ownership in Canada's uranium sector was part of yesterday's Speech from the Throne, in which the government said it will "ensure that unnecessary regulation does not inhibit the growth of Canada's uranium mining industry by unduly restricting foreign investment." Read more…

BC Hydro proposes rate hike of 9.26 % to fund projects
Globe and Mail – March 4, 2010

BC Hydro's energy plans include the addition of a fifth generating unit to its Revelstoke facility, upgrading spillway gates at the Cheakamus Dam to improve flood control, and modernizing and upgrading the corporation's distribution and transmission system. Read more…

Grizzly applies for $240M oilsands project near Fort McMurray
Calgary Herald – March 4, 2010

A Calgary-based company has submitted an application to start an 11,300-barrel-per-day oilsands project near Fort McMurray, officials said this morning. Read more…

Syncrude lawyer questions effectiveness of sound cannons to scare off ducks
Globe and Mail – March 4, 2010

Syncrude lawyer Robert White told court birds lose their fear of sonic cannons after about two hours. Read more…

Manulife sees funding shortfall for renewables
Reuters – March 4, 2010

Manulife Financial, Canada's largest life insurer, sees a funding shortfall for the country's renewable power developers, as demand for cash outpaces the debt market's recovery from the credit crunch. Read more…

Manitoba Hydro fined by Alberta regulator
CBC – March 3, 2010

The Market Surveillance Administrator, which enforces the rules governing the electricity market in that province, found Manitoba Hydro violations having to do with how the utility times the flow of electricity exports into Alberta. Read more…

Bill to Establish "Energy Corridors" Raises Concerns
Marine Public Broadcasting Network – March 3, 2010

Maine lawmakers are taking up a bill that has major implications for relations with Canada, future electricity costs, alternative energy development and jobs for Maine workers. Read more…

Clean tech sector gets $100-million boost
Vancouver Sun – March 3, 2010

The $100 million, announced it yesterday’s B.C. budget, will be spent over three years to support transportation infrastructure, support for development of biofuels from wood waste, and research and development of green power technology including wind, solar, geothermal and tidal power. Read more…

Rig activity on the mend in Western Canada
Calgary Herald – March 3, 2010

a surge in crude prices last year pushed up activity in the oilpatch and spilled into 2010. The number of active rigs peaked at the beginning of February at 520 out of 802 rigs, or 64.5 per cent, compared with a year prior, when rates were around 47 per cent. Read more…

Alaska pipeline feud heats up between key players
Calgary Herald – March 3, 2010

At an Arctic natural gas conference in Calgary, representatives from TransCanada Corp. and the Denali pipeline consortium took subtle jabs against each others' respective proposals at the Canadian Institute sponsored event. Read more…

Oilsands to drive natural gas demand
Calgary Herald – March 3, 2010

Oilsands development in Alberta and power generation in Ontario will continue to drive demand for natural gas in Canada for the next decade, while natural declines in the West will see supplies fall, according to Ziff Energy analysts. Read more…

Montana, North Dakota push for access to Canadian pipeline
Billings Gazette – March 3, 2010

The governors of North Dakota and Montana are enlisting domestic oil producers to bring pressure on a Canadian energy company that has so far declined to let domestic crude onto a pipeline planned from Alberta to the Gulf Coast. Read more…

Stelmach's Tories face gooey problem as more bitumen upgrading leaves Alberta
Calgary Herald – March 3, 2010

The amount of oilsands bitumen being upgraded in Alberta continues to sink -- leaving the government well short of its target -- with Syncrude the latest in a growing number of companies to cancel upgrader projects and send the lucrative product stateside. Read more…

Duck is rallying symbol at oil-sands trial
Globe and Mail – March 3, 2010

Death of more than 1,600 birds is central to case against Syncrude. Read more…

As Saudis court Asia, U.S. thirst for Canada's oil grows deeper
Globe and Mail – March 3, 2010

Saudi Arabia is increasingly targeting its oil exports to fast-growing Asian economies, and Canadian producers are picking up the slack as Saudi exports to the U.S. tumble. Read more…

Fresh thinking on going public
Calgary Herald – March 3, 2010

It's been a long time since there has been an equity deal of that size done in the energy space on the producing side; big exploration and production companies just don't seem to do the big equity deals anymore. Read more…

The Brewing Tempest Over Wind Power
Wall Street Journal – March 2, 2010

The Obama administration has made the increased use of wind power to generate electricity a top priority. In 2009 alone, U.S. wind generation capacity increased by 39%. But more wind power means more giant turbines closer to more people. And if current trends continue, that spells trouble. Read more…

Regulatory lawyer Lars H. Olthafer joins Blakes Energy Group
Law Fuel – March 1, 2010

“Lars’ background as a civil engineer and his expertise as a regulatory lawyer make him a real asset to the Blakes energy practice,” said Brock Gibson, the Firm’s Chair. “He will add further strength to our practice, which is already one of the leading energy groups in Canada.” Read more…

Korean deal with EnCana bodes well for LNG
Calgary Herald – March 2, 2010

The biggest winner in the farm-in agreement between EnCana Corp. and Korea Gas involving EnCana's Montney and Horn River acreage has to be the Kitimat LNG terminal. Read more…

Syncrude argues for dropping of charge
Globe and Mail – March 2, 2010

Tells court that defending against both federal and provincial charges in dead ducks case constitutes double jeopardy. Read more…

Enbridge Energy May Purchase $1 Billion in Assets This Year
Bloomberg – March 2, 2010

It may spend $1 billion this year on acquisitions and may expand in the Marcellus Shale region. Read more…

Power producers, transmission operators differ in Alberta's electricity outlook
Calgary Herald – March 2, 2010

All agree that activity in the oilsands will drive demand for power over the next couple of decades. The argument lies in by how much. Read more…

PetroBakken increases stakes in Cardium light oil play with $250M purchase
Calgary Herald – March 2, 2010

PetroBakken said it will purchase the company, only identified in the release as Privateco, for $88.7 million in cash and the issuance of 5.7 million PetroBakken shares. Read more…

Alberta braces for next labour squeeze
Globe and Mail – March 2, 2010

A rebound in the oil patch is sparking fears of a labour shortage like the one that led to sky-high wages and mass importing of skilled tradespeople. Read more…

Canada's ethanol boom, minus the boom
Globe and Mail – March 2, 2010

With little progress to show on commercial ethanol project, pressure is rising on Iogen Corp. to deliver on a key initiative touted in the last federal budget. Read more…

Athabasca files for IPO to fund oil sands projects
Reuters – March 1, 2010

Athabasca Oil Sands Corp, which just weeks ago wrapped up a C$1.9 billion sale of a stake in two oil sands projects to PetroChina, said late on Friday it plans an initial public offering to pay for its share of the projects' costs. Read more… 

Hydro-Québec and the hard sell
Montreal Gazette – February 27, 2010

In 2010 America, the idea that Canadian hydroelectricity is something the United States should plug into is a hard sell. In the U.S., large hydro projects are seen as belonging to another era, for economic as well as environmental reasons. Read more…

Proponents, critics seek 'clarity' from Victoria on clean power strategy
Vancouver Sun – March 1, 2010 

The British Columbia government has promised to introduce a Clean Energy Act that may emerge as a highlight in the introduction of Tuesday's budget. Read more…

South Korean firm joins EnCana in B.C. gas
Globe and mail – March 1, 2010 

Korea Gas plans to spend $1.1-billion over the next five years to bring gas to the surface from a huge patch of land that is owned by EnCana Corp. of Calgary. Read more…

Enbridge toll war heats up
Calgary Herald – February 27, 2010

A legal dispute between oilsands major Sunc or Energy and Enbridge over the timing of the launch of a crude pipeline into the U.S. Midwest has heated up, with more shippers jumping into the fray, while analysts wonder what other options players have. Read more…

World oil demand returns - with a twist
Vancouver Sun – March 1, 2010

We Canadians will take many positive lessons from the Vancouver Winter Olympics, which has catalyzed a proud, national competitive spirit on the world stage. Now it’s time for that competitive spirit to spill over into our oil and natural gas industry, lest we be frozen out of our share of the shifting thousand-barrel-a-second oil markets. Read more…

What the forestry industry is teaching the oil sands
Globe and Mail – March 1, 2010 

The forest industry once knew the difficulties of being pegged as an environmental ogre. Can the storm in the oil sands be calmed in the same way? Read more…

Alberta Works Quietly to Improve Image of Oil Sands
New York Times – March 1, 2010 

Alberta is undertaking a remarkable effort to expose connections that states, cities and congressional districts share with the often maligned petroleum resource, whose scalded landscapes and carbon output have become a favorite target of climate champions. Read more…

Castlegar pulp mill ready to make green energy
Vancouver Sun – February 26, 2010 

Castlegar's Celgar pulp mill has received a $40-million federal grant for a green energy project that turns biomass into enough energy to supply 22,000 homes with power for a year, integrating the forest industry into the provincial initiative to become energy sufficient by 2016. Read more…

Will Canada's wind turbines invade lakes?
Detroit Free Press – February 26, 2010 

A proposal to put 700 wind turbines along the shores of Lakes St. Clair and Erie, each about as tall as a 40-story building, is provoking controversy in the U.S. Read more…

Mullen Group ready to gobble up rivals
Calgary Herald – February 25, 2010 

With a $200-million cash bankroll, trucking and oilfield services provider Mullen Group Ltd. signalled Thursday it’s on the hunt for distressed competitors to buy this year. Read more…

Shell oilsands costs rise again, partner says
Calgary Herald – February 25, 2010 

The cost of a 100,000-barrel-per-day expansion of Royal Dutch Shell PLC’s Athabasca oilsands project has climbed to $14.3 billion, Chevron Corp., one of its partners, said in a filing. Read more…

Backing up the 'duh' factor
Calgary Herald – February 25, 2010 

While much has been said -- and seen -- of the dollars that have left the province to be invested elsewhere as a result of the current royalty system, Mintz's study is the first that quantifies how Alberta ranks relative to other jurisdictions where oil and natural gas are signifi cant contributors to economic activity. Read more…

Oilsands output ramping up
CanWest News Service – February 25, 2010 

Syncrude and Imperial are planning for 20% production increases. Read more…

Suncor sells natural gas assets in Trinidad and Tobago
Globe and Mail – February 25, 2010 

Company continues to pare down assets that don't fit with its core oil sands business. Read more…

GE bullish on province's green power sector
Vancouver Sun – February 25, 2010 

"We think that between the run of the river projects and the wind regime you have here, and the opportunity for distribution, both to [domestic] use and for export, makes for a great market opportunity. Read more…

Oilsands to drive power demand
Calgary Herald – February 25, 2010

Power demand in Alberta will grow at a slower pace over the next two decades than previously forecast, but will continue to be driven by oilsands activity, the provincial power watchdog said. Read more… 

Many factors led to oilsands shutdown, says Total
Calgary Herald – February 25, 2010 

A regulator’s decision to restrict steam pressure in its Joslyn thermal oilsands pilot project was just one factor in the decision to abandon it, a Total E&P Canada spokeswoman said Wednesday. Read more…

Alberta least competitive in oil and gas: U of C report
Edmonton Journal – February 24, 2010 

Jack Mintz, director of The School of Public Policy, ranked oil and gas producing jurisdictions in terms of their competitiveness and the ability of their tax and royalty structures to attract investment, comparing Alberta, Saskatchewan, British Columbia, Nova Scotia, Newfoundland and Texas. Read more…