BBC
Shifting sands: Canada, the world and the oil sands
Link to series, videos and more
Stephen S. Poloz VP EDC Economics Weekly Commentary
How low can oil prices go? - January 23, 2008
Oil prices have broken below the psychologically-important $90 level, leading speculators who have bet heavily on $100-plus oil to consider bailing out of the market. For real consumers, in contrast, this is good news – and the question is, how much better can it get?
There is a wide dispersion of views on the future. Just a year ago many thought oil prices were headed below $50, while today some believe they are headed above $100. A non-economist might wonder what changed during the past 12 months to account for such shifts. Certainly, the arguments that are made to support forecasts are not new – rapid growth in Asia, political risk in the Middle East, a perception that conventional sources of oil are drying up, and the like. Past issues | his WN page
Commentary podcast. 
Saudi Arabia announced today that contrary to rumours of dwindling oil supplies, they have plenty of oil. In fact, with the most recent estimate, they said they have enough oil to keep screwing us for the next 300 years. - Jay Leno
Thursday 10 January 2008 RBC
Canadian Oil & Gas Research - The WCSB Issue of Scale: Go Big or Go Home
There are many factors that determine the performance of upstream activities such as management, quality of assets, asset class, company size or scale, etc. There exists an inverse relationship between size and historical F&D costs for WCSB conventional upstream activities for large-cap companies. Scale is important as it provides pricing power with respect to service costs, drilling flexibility inherently due to a large land position & infrastructure and permits meaningful exploration/R&D. RBC CM’s investment thesis is that value-creating opportunities exist for shareholders given the increasing motivation for consolidation or restructuring WCSB assets. Unless Petro Canada and Suncor can improve their upstream returns (scale being one issue), restructuring would be positive for shareholders. The value of PCA and SU's upstream WCSB business is $9-$10/share and $3-$4/share, respectively. Nexen’s WCSB conventional upstream business has struggled to create value over the past five years and unless its CBM/shale gas projects are successful, divestment is a serious option. Similarly, TLM's lack of growth combined with their F&D cost performance suggests re-examining its strategic options for its WCSB upstream assets. In part, due to their dominant size and scale, Encana and Canadian Natural Resources have been able to demonstrate reasonable financial upstream performance and even then, conventional production is flat or declining. The issue of creating sufficient scale is accelerating from the increasing maturity of the WCSB. With an industry natural gas decline rate of 19%, 20,000+ gas wells need to be drilled annually to maintain gas production while 5,000 additional gas wells are need to grow production 5% – assuming that many prospects exist. WCSB activities tend to favor producers such as CNQ and ECA given their size or scale. Opportunity exists for NXY, PCA, SU and TLM to create value or improve valuations under restructuring scenarios (lower impact on valuation for NXY and SU). The glass ceiling for WCSB upstream production now appears to be 200 mboe/d, where producers in this range appear to be unable to increase production organically without large-scale acquisitions.
Saturday 05 January 2008 TORONTO: CANADIANS WARNED ABOUT RISING PRICES
Some oil industry analysts say Canadian motorists should prepare to pay at least $1.30 a litre for gasoline this summer, if oil prices stay above the 100-dollar a barrel mark. They say the cost for food, transportation and other services could also go up. Gasoline demand in January is typically low. But Cathy Hay of M.J. Ervin and Associates says if crude oil prices are at the levels they are now when the spring and summer driving seasons start, Canadians can expect sharply higher prices at the pumps. Those prices are already creeping up, hitting as high as $1.16 per litre in some parts of Canada.
Friday 04 January 2008 CALGARY: HIGH CRUDE EQUALS HIGH GASOLINE
Gasoline prices in some parts of Canada are creeping up as crude oil continues to hover around $100 a barrel. The website Gasbuddy.com says the Canadian national average is around $1.07 per litre - up a cent from Wednesday. The average price in Newfoundland and Labrador shot up about three cents to $1.17 per litre from a day ago, going as high as $1.29 in southern Labrador. In oil-rich Alberta, prices were just shy of 98 cents per litre - the lowest provincial average in the country.
Friday 04 January 2008 Volatility of the Markets Carries On in 2008
Oil’s $100-a-barrel price flirtation suggests that traders will see more of the escalation in energy markets that marked the final months of 2007.
Crude oil futures for February delivery hit $100 on the New York Mercantile Exchange shortly after noon when a single trader bid up the price by buying a modest lot and then selling it immediately at a small loss. Prices eased somewhat in later trading, settling at $99.62.
Jan 3rd 2008
From The Economist print edition
Oil keeps getting more expensive—but not because it is running out
NEW YEAR'S EVE has been and gone, but for oilmen, the party continues. On January 2nd, helped across the line by a New York trader eager for bragging rights, the first business day of the year, the price of their product topped $100 a barrel for the first time. Oil is now almost five times more expensive than it was at the beginning of 2002.
It would be natural to assume that ever increasing price reflects ever greater scarcity. And so it does, in a sense. Booming bits of the world, such as China, India and the Middle East have seen demand for oil grow with their economies. Meanwhile, Western oil firms, in particular, are struggling to produce any more of the stuff than they did two or three years ago. That has left little spare production capacity and, in America at least, dwindling stocks. Every time a tempest brews in the Gulf of Mexico or dark clouds appear on the political horizon in the Middle East, jittery markets have pushed prices higher. This week, it was a cold snap in America and turmoil in Nigeria that helped the price reach three figures.
Thursday Jan 3, 2008 Manufacturers groan while energy companies rejoice Crude oil at $100 a barrel has beneficial effects for producer countries, but hampers consumer nations...
Thursday Jan 3, 2008 Hang in - high oil likely won't last
What's the cure for high oil prices? High oil prices. see energy-power
2 January 2008 nsnbc Oil $100
Tuesday 01 January 2008 Oil slipped to just below $96 U.S. a barrel Monday, closing 2007 with the biggest annual gain this decade. U.S. crude futures settled 2 cents lower at $95.98 a barrel. The price of oil has quadrupled in four years, driven by surging demand from China and other developing economies, alongside OPEC production cuts, a weak U.S. dollar, and rising geopolitical turmoil
2007
Wednesday 12 December 2007 Conventional Oil & Gas Trusts – Commodity Price Update
RBC Capital Markets has revised its commodity price assumptions for the remainder of 2007, and for calendar years 2008 and 2009. The assumption changes reflect the continued strength in crude oil, and the on-going weakness that persists inatural gas. The Canadian dollar has retreated back to par versus the U.S dollar, and the Analysts’ are assumthat the currency will remain at pthrough 2009. The revised crude oestimates reflect a price of $85.50/bbfor 2008 (up from $76.50/bbl) and $84.00/bbl for 2009 (up from $74.00/bbl). With regards to natural gas, the Analysts’ have reducedforecast down $0.25/mcf in eto $7.00 from ($6.75) in 2008 and $7.00 (from $7.25) in 2009. RBCCapital Markets believes that the conventional oil and gas trust sector market is dealing with three concerns right now. These are 1) The prospect of trust taxation, which is now 3 yeaway; 2) The potential for distributiocuts, as trusts try to "live within their means" in light of weak natural gas prices; and 3) Fund redemptions ofsome of the large trust unitholders. Overall, RBC Capital Markets has increased its price targets by ~3%, with the biggest increases among the oil weighted trusts. RBC CM;s best ideas among the upstream-only trusts are ARC (AET.UN), Baytex (BTE.UN), Bonavista (BNP.UN), NAL (NAE.UN) and Zargon (ZAR.UN). The team also likes Harvest (HTE.UN) (which harefinery exposure) and Provident (PVE.UN) (midstream exposure).
Wednesday 05 December 2007
Husky and BP forge US$5.5B oilsands alliance
CALGARY -- Husky Energy Inc. and longtime oilsands holdout BP PLC have struck a major deal to combine oilsands assets in Alberta with BP's refinery in Toledo, Ohio.
thanks Robert Travers
Tuesday 04 December 2007 CALGARY: ENBRIDGE PIPELINE FIXED
The pipeline between Canada and the U.S. that accounts for 16 per cent of the oil exported to the U.S. is back in operation after a fatal accident last Wednesday. Two workers in the state of Minnesota died while trying to put out a fire. Enbridge, Canada's biggest pipeline firm, says it has replaced a 55-metre segment and that the pipeline carrying crude oil between the western province of Saskatchewan to Chicago is operating normally. The cause of the fire is under investigation.
National Post - Sunday, Nov. 25, 2007Oil-rich states can skew other sectors
... Oil-rich states can skew other sectors. New wealth will lead to massive asset bubbles.
Sean Silcoff, Financial Post Published: Monday, November 26, 2007. ...
Oil and Gas Commodity Price Deck Change RBC CM increased its 2008 natural gas price forecast to $7.50/Mcf from $7.00/Mcf. Current storage levels are at 3.5 Tcf, 106 Bcf above last year and 301 Bcf above the 5-yr average. While inventories continue to remain at all-time highs, RBC CM does not foresee natural gas prices weakening at this time. Gas prices are expected to remain between $7-$8/Mcf until winter weather shows some clear direction. Currently, the consensus is calling for a colder winter relative to last year and the past 10-years, although that perspective has warmed from initial cooler expectations. Strong crude prices and some winter anticipation have put a floor on gas prices.
RBC CM has increased its 2008 WTI oil price forecast from $60.00 to $70.00. Oil prices have shown remarkable strength in 2007 as a result of fears of future supply disruption, worries about the ability of OPEC to increase production and pure investor exuberance. The current price is $10-$15 ahead of the fundamentals as there is a premium for potential future supply disruption and/or investor speculation. The current supply cushion is reasonable enough to withstand some minor disruption as there is currently 3.0 MMBopd of OPEC spare capacity and RBC CM expects non-OPEC production growth of 800,000 Bopd in the next 12 months. RBC CM expects to see the oil market soften from current levels in Q1 once it becomes clear that supplies are more than adequate to get us through the winter.
Saturday 01 December 2007 CALGARY: ROYALTY CHANGE CAUSES PETROCAN TO REORIENT
Petro-Canada says the high royalties for oil and natural gas which the Alberta government will impose won't interfere with its profitable oilsands projects at MacKay River and Fort Hills. The government announced in October that it will collect $1.4 billion a year in higher royalties. PetroCan CEO Ron Brenneman added, however, that the company's spending for exploration will shift to the U.S. Rocky Mountains, the Baltic Sea and the eastern Arctic. Mr. Brenneman says he excited by the prospect of beginning to exploit the estimated 12 trillion cubic feet of natural gas which PetroCan owns in the latter region.
October 29, 2007
Friday 23 November 2007 OTTAWA: CHINA'S NEED OF OIL AND MINERALS FUELLING CANADA'S COMMODITY PRICES
The Bank of Canada says that China's thirst for oil and minerals will drive upwards world commodities for years to come and be a key factor in the global demand for Canadian commodities. The central bank's fall review notes that China's economy has been expanding by almost 10 per cent a year and there's no sign that that rate will decline. The bank's report on the subject says that in 2002 China bought 13 per cent of the world's production of metal ores, a figure which increased to 25 per cent only three years later. The Canadian economy has been powered by the rise of global commodity prices since 2002, the year when the Canadian dollar began its rise from below US70 cents to parity this year.
Stephen S. Poloz VP EDC Economics Weekly Commentary
As owner of some 25% of the world's known oil reserves, Saudi Arabia has lately redefined what it means to strike it rich. Oil revenues are approaching $1 billion per day, and the money is fuelling a building and diversification boom without precedent. Past issues | his WN page
Commentary podcast.
TORONTO: IRVING EMPIRE REPORTED BREAKING UP
The Globe and Mail newspaper reports that the New Brunswick-based empire of the Irving family is going to be broken up. The $6-billion Irving fortune is the third-biggest in Canada. According to the newspaper, the end of the 125-year-old Irving business is due to disagreement of the succession of a new family generation. The Irvings have a gamut of interests including energy, forestry, retail, trucking and news media properties. The business is run by the three sons of K.C. Irving who are now in their 70s. The Globe asked 79-year-old J.K. Irving whether the different branches would become independent of each other, to which he replied, "that's the evolution taking place today." One unnamed source told the newspaper that the ownership structure put into place by K.C. Irving cannot survive and that the Irving business as it is today is coming to an end.
Tuesday 20 November 2007 SAUDI ARABIA
Delegates at the OPEC summit in Riyadh pledged on Sunday to maintain what they called adequate and timely supplies of oil. Some delegates had urged the group to debate the consequences of a weakened American dollar, but the group's final communique made no mention of it. OPEC charges its exports in American dollars, so that a weaker dollar means less profits. The OPEC leaders also addressed criticism that they are failing to contribute enough to fight global warming. Kuwait, the United Arab Emirates and Qater each pledged US$150 million and Saudi Arabia pledged $300 million towards research into climate change and the environment.
Stephen S. Poloz VP EDC Economics Weekly Commentary
Bubble, Bubble, Oil in Trouble? - November 14, 2007
Black gold is on a tear again. Oil prices are currently within a hair of the psychologically-sensitive $100 mark, and the trajectory is steep. This is perhaps good news for the oil patch, but given oil’s effect on the Canadian dollar, many are worried. Will the price spike last?
Oil was making headlines of a different sort at the beginning of this year. Markets seemed convinced that conditions were more balanced – North America was surviving the winter heating season, and global growth indeed seemed to be slowing. Prices descended to the $50 per barrel zone in January, and the talk on the street turned to price floors. OPEC was worried about keeping oil at $40, and financial strategists were recommending a shift out of energy holdings. Past issues | his WN page
Commentary podcast.
Sunday 04 November 2007 UNDATED: OIL PRICES SOAR
In New York, light sweet crude rallied 96 cents to $54.45 a barrel. It hit a record high of $96.24 on Thursday. In Vienna, the OPEC cartel reported that its "basket price" jumped to a record $87.61. The basket price is the reference price for output policies of the cartel. It rose about $85 for the first time on Monday.
Wednesday 31 October 2007
Articles
How High Can Oil Go?
The fundamentals simply don't justify
current price levels. "By every supply and
demand standard, the oil market is nowhere
as tight as it was in 2004 [when oil was
fetching about $50 a barrel], yet prices
are nearly double now," says Tim Evans, an
energy analyst at Citigroup Global Markets.
One factor contributing to the higher cost
of oil is the dollar's ongoing decline.
Crude oil producers are able to...
Read More...
Saturday 27 October 2007 CALGARY:ROYALTY MELTDOWN DOESN'T MATERIALIZE
The selloff of oil and natural gas stocks that some analysts had predicted because of the Alberta government's royalties increase announced on Thursday didn't pan out. The TSX energy sector actually gained .17 per cent in trading on Friday, as the global price of crude oil hit new heights. The barrel of crude closed at US$91.86 on the Nymex. Shares of companies like EnCana Corp., Suncor Energy and Canadian Oil Sands Trust declined slightly, but shares of Canadian Natural Resources Ltd. and Imperial Oil, the country's largest integrated oil and gas producer, actually rose. PetroCanada, meanwhile, announced that it will carry on with early engineering work on two energy projects worth $15 billion. On Thursday evening, Premier Ed Stelmach said the government will raise royalties by $1.4 billion a year staring in 2009. An independent panel had recommended they rise by $2 billion yearly starting next summer. more Alberta
Wednesday 17 October 2007 CALGARY: ASIAN BILLIONAIRE EXPANDS HOLDINGS IN OILPATCH
A Hong Kong-based firm controlled by Asia's richest man, Li Kashing, has bought TransAlta LP, one of Canada's biggest power trusts, for $629 million. His CKI firm says it will pay unit holders $8.39 per unit. TransAlta LP had been controlled by TransAlta Corp. CKI says the transaction is part of an effort to establish itself in North America's energy sector. Li Kashing already controls Calgary-based Husky Energy Inc. TransAlta Power put itself up for sale in May, saying that the federal government's decision to tax trusts at the same rates as corporations meant that its business model was no longer in the best interest of the unitholders.
Oct. 16 - Crude prices touched $88 for the first time, amid a six-day rally, as geopolitcal tensions kept supply concerns running high.
Crude prices touched $88 for the first time, amid a six-day rally, as geopolitcal tensions kept supply concerns running high.The demand picture was also a contributing factor as America, the world's biggest consumer of heating oil, heads into the winter season.
Tuesday 16 October 2007 Oil Futures Nov. ’07 (OILC : NYMEX : US$86.13), Net Change: 2.44, % Change: 2.91%
World oil demand refuses to be 86’d. On October 10, we wrote: “Turkey’s government has ordered its army to ready itself for a
potential incursion into Iraq to attack the Kurdistan Workers’ Part (PKK) in retaliation for killing 15 Turkish soldiers over the
weekend. It’s just another source of potential instability for this oil-rich region.” Yesterday, that page-16th story hit the front
page and affected oil prices. Turkish lawmakers vote this week whether to allow military attacks within a year against Kurdish
rebel bases in the north of Iraq. America’s Congress is considering whether or not Turkey is guilty of genocide during WWI
against the Armenians and this Turkish vote may be designed as a threat. Critics of the Congressional vote argue that Turkey is
an ally in the Middle East the vote may cause Turkey to make America’s life in Iraq more difficult. Separately, OPEC said its
estimate for world oil demand growth in 2007 remains intact despite the dramatic increase in price. They still hold to a 1.3
million barrel per day increase, or 1.5% growth. They added that while Q3 demand is “normally a low season for world oil
demand,” demand for Q3 “is forecast to be strong.” Their 2008 estimate remains unchanged.
Oct 11th 2007 | ST JOHN'S
From The Economist print edition
Time to swap migrants for touristsWRAPPED in Atlantic mists and storms three hours' flying time east of Ottawa, it was only in 1948 that Newfoundland and Labrador voted by a slim margin to relinquish its status as a British colony to become the tenth province in Canada. To judge from the number of pre-confederation flags in the capital, St John's, many still wonder if they made the right choice. The green, white and pink standard, resembling a washed-out Irish tricolour, is flown from rooftops, draped in shop windows, stencilled on T-shirts and even iced on cookies sold to tourists. “It represents a time when we had more pride,” says Mark Dobbin, the boss of a helicopter service company. “We're not that long in Canada and we haven't been treated very well,” he adds. more
Friday Oct 12, 2007 CALGARY, EDMONTON: ROYALTIES ISSUE ROILS WAVES
The recent report by an independent panel which claimed that the provincial government isn't getting its fair share of oil and natural gas royalties which ought to be raised by about 20 per cent continues to generate controversy in Alberta. Three junior oilsands firms have formed a political alliance to lobby against such an eventuality. Athabasca Oil Sands Corp., Laricina Energy Ltd. and MEG Energy Corp. issued a common statement in Calgary on Thursday saying that the authors of the report seem to have overlooked the fact that oilsands are "costly to develop and produce." The companies says the panel's report doesn't take account of the reality that smaller energy firms take huge risks and develop the technologies that drive Alberta's energy sector. Several of the big energy firms, including EnCana Corp. and Talisman Energy, have said they'll cut investment by between $500 million and $1 billion if the royalties rise by 20 per cent. Meanwhile in Edmonton, opposition NDP leader Brian Mason has demanded that Conservative Premier Ed Stelmach raise the royalties before calling an election. Mr. Mason suspects Mr. Stelmach might promise to do so beforehand and then renege on the promise afterwards because of his party's reliance on contributions from big energy firms.
| Oil jumps close to record on supply worries October 11, 2007 03:26 PM ET 
|
Wednesday 10 October 2007
Oil Future Nov ’07 (OILC : NYMEX : US$80.26), Net Change: 1.24, % Change: 1.57%
Coexistence: what the farmer does with the turkey - until Thanksgiving. Oil prices fell after Royal Dutch Shell (RDS.B)said it would increase production from an oil terminal in Nigeria that they closed last year due to the violence. Also, two days ago, the company lifted a month long force majeure from its Forcados oil terminal. Force majeure is a legal condition which protects a company from not meeting contractual delivery obligations. The stronger U.S. dollar was another source of yesterday’s oil weakness. In unrelated news, Turkey’s government has ordered its army to ready itself for a potential incursion into Iraq to attack the Kurdistan Workers’ Part (PKK) in retaliation for killing 15 Turkish soldiers over the weekend. It’s just another source of potential instability for this oil-rich region.
Wednesday 10 October 2007 Cognos Inc. (CSN : TSX : $48.22 | COGN : NASDAQ : US$49.06)
SAO buys Business Objects
Blackmont Capital maintains "hold", 12-month target price is raised to US$57.00
BMO Capital Markets maintains "outperform", 12-month target price is raised to $58.00
Wednesday 10 October 2007 MONTREAL: TERRORIST REPORTED DRAWING A BEAD ON CANADA'S ENERGY SECTOR Le Devoir newspaper reports that international terrorists have marked out Canada's energy industry as a legitimate target for attacks. The newspaper bases its report on sometimes heavily censored documents obtained under the federal Access to Information law. The documents obtained from the Canadian Security and Intelligence Service cite an al-Qaeda Internet Website as saying that the terrorist group considers attacks against oil and gas facilities in Canada, Mexico and Venezuela as advisable because they are major suppliers to the U.S. and could even supply enough energy to enable the Americans to do without oil from the Middle East altogether. Canada supplies about 17 per cent of the U.S. needs for oil and oil products. Canada has 19 oil refineries, including four in Sarnia, ON; and three each in Montreal and Edmonton, AB. The country has a network of oil and natural gas pipelines that extends 45,000 kilometres. The CSIS documents also express worry about attacks against Canada's electricity networks.
Wednesday Oct 10, 2007 OILPATCH GIANT REBELS CALGARY: ANOTHER ROYALTY WARNING ISSUED Tuesday 09 October 2007 Oil prices tumble in quiet market Tuesday 09 October 2007 Wed1336 To add fuel to the flames of discussion you may want to pick up William Marsden’s recently published book, STUPID TO THE LAST DROP: HOW ALBERTA IS BRINGING ENVIRONMENTAL ARMAGEDDON TO CANADA (AND DOESN’T SEEM TO CARE). Failing that, read the Globe & Mail Review . The reviewer pounced on Mr. Marsden’s account of a ‘nutty’ plan hatched in the 1950s to release the oil mixed within Alberta’s gritty sand using an underground nuclear blast. Monday 08 October 2007 Monday 08 October 2007 A very imp story by Diana Nicholson with links Thursday 04 October 2007 CALGARY: OILPATCH RESISTANCE GROWS TO ROYALTY INCREASE
The former CEO of Talisman Energy, one of Canada's major energy firms, says that Talisman will cut $500 million of planned investment in Alberta if proposed increases of royalties are implemented. Jim Buckee warns in an open letter to the government of Premier Ed Stelmach that the sum would be added to the already booked $500 million decrease in investment because of low natural gas prices. A report by Auditor General Fred Dunn on Monday said that the government concealed information for at least three years that energy royalties could have been raised by at least $1 billion annually without harming the energy sector. The report recommends that the royalties be increased by an average of 20 per cent. Mr. Buckee says that if the recommendation becomes reality, there will be a "significant loss of investment, jobs, tax and the loss of world class technical expertise." Petro-Canada CEO Ron Brenneman also wrote an open letter to Mr. Stelmach complaining that the auditor general's report used a flawed analysis and that if its findings are implemented PetroCan will cut investment. Last week, another important energy firm, EnCana Corp., said it wasn't opposed to an increase in royalties, but that if the report by the auditor general is adopted fully, it will cut spending in the province by $1 billion next year.
Wednesday 26 September 2007 Oil Prices: Fresh all time highs on global oil prices favour more concerted action by governments to support alternative fuels policies. This in turn, supports higher demand (and therefore prices) for oil seeds, sugar, corn, sugar beets and other starch based products that can be used to make ethanol (i.e. wheat in Saskatchewan). Higher oil prices support fertilizer stocks through higher fertilizer demand to make more grains/oilseeds/sugars. For chemicals, higher oil prices hurt global demand. However, higher oil prices support higher gas and coal based realized methanol prices longer term. Recent China methanol spot prices have spiked up 35%.
Monday 24 September 2007 moreOttawa faces hit on higher royalties Wednesday 19 September 2007
Canadian Natural Resources Ltd. is the latest energy firm in Alberta to warn of consequences if the government of Premier Ed Stelmach acts on the recommendation of an independent panel that studied energy royalties to raise them by an average of 20 per cent. The panel said that oil and natural gas firms have shortchanged the government for years. Canadian Natural Resources, Alberta's second-biggest producer of natural gas and largest producer of heavy oil, claims that implementation the panel's report would in fact lead to a 50-per cent increase in royalties rather than 20 per cent. The company says that changes in income taxation, environmental regulation and inflation would make investment far less worthwhile and that the firm would in fact reduce it, with a loss of 3,900 fewer direct jobs and 16,000 fewer indirect positions among its contractors, with $7 billion less in investment in oilsands projects. A series of energy firms has expressed outrage over the panel's report and similarly threatened to reduce investment in Alberta.
Traders debate what's ahead: a big rally or a big slide
Will offshore oil turn the province around?
LOOK closely at a time-zone map of the western hemisphere. You will see a small area carved out of the Atlantic zone off the east coast of Canada. There sits Newfoundland, which has its own time zone (NST: Newfoundland Standard Time), three and a half hours behind Greenwich Mean Time and half an hour ahead of eastern mainland Canada.
Being different, sometimes awkwardly so, comes naturally to Newfoundlanders. Latecomers to the Canadian federation—they only joined in 1949 after voting by the slimmest of margins to replace the hated rule of London with that of the equally distrusted government in Ottawa—they feel their history and culture make them at least as distinct as the Francophone Quebec, and entitled to the same special treatment.
STUPID TO THE LAST DROP: HOW ALBERTA IS BRINGING ENVIRONMENTAL ARMAGEDDON TO CANADA (AND DOESN’T SEEM TO CARE)
Proposed changes to Alberta's oil and gas royalty regime could cost federal government hundreds of millions of dollars
Last week, a report commissioned by the Alberta government said the province hasn't been getting its "fair share" from its energy resources and advocated wholesale changes to its royalty structure, including substantial hikes to oil sands taxes and a new so-called "severance tax" that would recoup proportionally higher rates as commodity prices rise.
If the recommendations are implemented in full, energy firms would end up paying an estimated extra $2-billion a year in royalties and new taxes to Alberta.
Oil Futures Oct. ’07 (OILC : NYMEX : US$81.51), Net Change: 0.94, % Change: 1.17%
Skid marks the spot. Oil traded nearly US$83.00/bbl after the Fed cut rates yesterday. Lower rates are very bullish for oil
because it supports economic growth and energy consumption. Most analysts have are forecasting for oil to trade in the range of
US$65.00 to US$70.00/bbl over the coming year. With oil at US$83.00/bbl that's very bullish no? Similar to gold stocks, shares
of oil producers are seemingly lagging the move in the underlying commodity. Some analysts will say that the upshot in many
oil stocks has been muted because of the production hedges that the companies have in place. Do we re