Canadian Energy Weekly Round-Up: November 2, 2020
Here are the top news stories covering Canada’s energy landscape:
Alberta Nixes Limits on Oil Production, Limits Expire at End of Year
The Albertan government recently announced that while it will continue to maintain its regulatory authority to curtail oil production through 2021, it has no plans to set limits over the next year.
The move by the provincial government was motivated by the potential to create jobs by capitalizing on pipeline capacity.
Alberta Energy Minister Sonya Savage in a press release said ending the production limit will add provided security for the region:
“Maintaining the stability and predictability of Alberta’s resource sector is vital for investor confidence as we navigate the economic conditions brought on by the pandemic, the commodity price crisis and the need for pipelines. This purposeful approach serves as an insurance policy, as it will allow Alberta to respond swiftly if there is a risk of storage reaching maximum capacity while enabling industry to produce as the free market intended.”
Currently, three major pipeline projects in the region near the final phases of their completion – Keystone XL, TransMountain expansion, and Enbridge Line3 – will drastically increase production takeaway capacity from the region, adding value to the region’s exports.
Alberta’s government said experts do not expect production in Western Canada to be above pipeline capacity before mid-2021.
Equinor, BP Canada, Make Two Discoveries in Newfoundland and Labrador
Offshore exploration near Newfoundland and Labrador which began this summer came back with returns for both Equinor and BP Canada who hold stakes in the oil discovery process. The two discoveries were made at the Cappahayden and Cambriol prospects, located in the Flemish Pass Basin.
Charlene Johnson, CEO of the Newfoundland and Labrador Oil and Gas Industries Association, said that offshore exploration will be a key indicator for success in the region:
“The announcement by Equinor and partner BP Canada that oil has been in the Flemish Pass Basin is encouraging, at a time when encouraging news is needed for the Newfoundland and Labrador offshore oil and gas industry. Offshore exploration is imperative to the future of the industry and these successful wells further demonstrate the exceptional prospectivity of the Newfoundland and Labrador offshore.”
Estimates for the total oil discovered have yet to be released. Paul McCafferty, Equinor’s senior vice president for international offshore exploration, said the discovery is well-received, especially after the industry reacted to the COVID-19 pandemic:
“We are pleased to have made two discoveries offshore Newfoundland. The results are a testament to the hard work and dedication of our team, who have executed a safe campaign with positive results – particularly considering the unique challenges faced during the COVID-19 pandemic.”
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