Author: Brian Zinchuk

Watch Rex Murphy’s speeches at the Saskatchewan Oil and Gas Show

In 2022 I have the opportunity to meet Rex Murphy for the second time. He was the keynote speaker at the Saskatchewan Oil and Gas Show in 2019 and 2022.

I was halfway through editing the video for the 2022 speech two years ago when somehow the file I was working on got lost, and I never did finish the edit. Thursday night I dug up the video files and put this together, in tribute.

This video and speech have not been published before Thursday. Even at 75, and pretty exhausted once he left the stage, he still put on a stellar oratory.

Later in the story is the video for his 2019 speech, which knocked it out of the park.

Oh, how I wish I could have had Rex as a columnist. It would have been stellar. RIP Rex.

 

Carbon capture strikes out in Alberta

If carbon capture is supposed to be the future, why does it keep striking out? Last week, Capital Power in Alberta cancelled the $2.4 billion carbon capture project for the Genesee Power Station, which is currently being converted from coal to natural gas. It’s the last thermal coal power plant in Canada west of Coronach, Sask.

Also last week, TransAlta canceled a wind project not far from Waterton Lakes National Park.

And Saskatchewan and Alberta are deepening nuclear ties.

TC Energy’s making bank on natural gas deliveries.

Honey! It’s finished!

Well, they finally finished that pipeline to the Left Coast. In other parts of the world, this is May Day, the Workers holiday. Here, maybe it should be Pipeline Day?

And the Saskatchewan government is pretty excited about this multilateral well program. They announced it for a third time yesterday. This story provides more detail on how it could reinvigorate cold heavy oil production in the Lloydminster area.

Alberta’s getting behind geothermal development.

 

 

Build a pipeline, things pick up. Who woulda thunk it?

Anyone think that new pipeline might actually make a real difference? Hmmm? Too bad it wasn’t done five years ago. Trans Mountain pipeline project ushers in new era for oilsands hub Fort McMurray.

And too bad Northern Gateway wasn’t built 8 years ago. And Energy East was supposed to be in service December, 2018. Lots of too bads. I wonder why…

So I take my kid to a career day in Estevan, THE ENERGY CITY, and not one energy company has a table at the career fair. Here’s my not too impressed column about it.

Cenovus got spanked for an offshore oil spill.

And if you move dirt, ever, in Saskatchewan, you should be aware of Sask 1st Call. They had some big changes last year, apparently.

Lithium, geothermal, carbon tax, drilling, plastics, loans – a bit of everything

Geothermal project near Estevan has major update, with a greenhouse now in the works to make use of surplus heat that would otherwise go to waste.

First Nation wants voice in plastics treaty. Guess they don’t like plastics.

This might have been posted yesterday. Trudeau calls out Moe on carbon tax fight. (Yes, I use the Canadian Press – as a one man band, I can’t do everything!)

More on carbon tax fight, from Trudeau

Quick Dick McDick puts the old farm truck out to pasture. It makes me sad, because my gas guzzling Canyonero of a Ford Expedition is nearing its end of life, too.

For some reason, this didn’t post yesterday:

And when they’re not working on lithium, ROK Resources plans on six oil wells after breakup

Lithium in SK, Part 28: Hub City Lithium operating direct lithium extraction pilot in Estevan

Trudeau says Saskatchewan to get carbon rebates despite province not paying levies

Freeland says $5 billion just a start for Indigenous loan guarantee program

Minister Guilbeault issues statement on high-level meeting as INC-4 begins, verbatim. This is that plastics ban thing. In Pipeline Online’s never-ending quest to ensure the Canadian Public knows exactly what Minister of Environment and Climate Change Steven Guilbeault is telling us on how to save the planet, here is his verbatim statement issued on April 23 about the evils of plastic.

An ‘ambitious’ global plastic treaty demands limits on production, Guilbeault says

Harper to speak in Weyburn

Former Prime Minister Stephen Harper to headline the Saskatchewan Oil and Gas Show in Weyburn June 5-6. He speaks at noon on June 6.

Remember when he said the Liberals were promising teeny tiny deficits? Fortune teller, that one. “The budget will balance itself.”

Speaking of the oil show, there are a number of people who will be honored for their life’s work. Dean Gilliss is the first profile I’ve written this year.

Also: Apparently April 22 was Earth Day. Who knew? I must have missed that one. Anyhow, Biden used it as an excuse to throw another $7 billion at solar.

Lighter than air

Royal Helium announces Val Marie helium project with Sparrow Hawk Developments. This means Saskatchewan will soon have multiple #helium producers, and a year from now, should be 2/3 on the way to its goal of having 15 helium purification facilities by 2030. I’m guessing we’ll have more than that by 2030.

For those who are not aware, helium production is almost indistinguishable from natural gas production, and requires oil and gas service companies to make it happen. Same drilling rig, same service rig, same lease builders, same facility builders, same just about everything. It’s the “other natural gas,” as it were. And Saskatchewan is aiming to hit 10% of the global market by 2030.

We’re going to do our own thing, thank you

The proposed federal Clean Electricity Regulations say in 10 years, seven months and 15 days we won’t be able to use natural gas-fired power generation without carbon capture except for very short periods of time over a whole year.

Or in Saskatchewan, we just say to hell with that and turn sod on our newest big natural gas-fired power station.

Also, Biden hates oil so much, he wants more of their money.

Saskatchewan-based small oil producers leading the charge in land sale

Aldon Oils, seen drilling near Lampman last September, was one of the active buyers of mineral rights. Photo by Brian Zinchuk

A number of small Saskatchewan oil producers are scooping up land for future drilling.

Every two months Saskatchewan holds a competitive auction for mineral rights for petroleum and natural gas. If a company is interested in getting the Crown mineral rights to a few sections, for instance, they will apply to the government to have that land posted. Then at the next land sale, anyone can bid on it, and whoever bids the highest, wins. So even if a company had does all sorts of exploration and research to secure a certain piece of property, another company can notice what’s been posted on the land sale and outbid them. But whoever bids on it has certain spending obligations within a certain amount of time or they will lose those rights and they can go back up on the auction block again if they are once again posted. This is quite common.

It took me a while to get to this as it came out last week, but that gave me the time to dig deeper and discover that a good chunk of the activity appears to be from Saskatchewan-based junior producers. And that’s pretty exciting news. Yes, there’s still a substantial amount hidden by land agent deals, but seeing the juniors getting in the game like this is a sign of confidence in the industry. And this was posted BEFORE the multilateral announcement. So I wonder what will happen a few months down the road, with postings after the multilateral announcement?

Drill, baby, drill.

To hell with it is “definitely on the table”

Jim Reiter, Bronwyn Eyre, Michael Milani. Photo by Brian Zinchuk

Saskatchewan fights back on federal oil and gas emissions cap, Methane 75. Saying “to hell with it” is “definitely on the table,” says minister when asked.

Province invokes Saskatchewan First Act, again, building its case against the federal government’s never-ending smothering greenhouse gas emissions rules, regulations and legislation.

I was up in Saskatoon Monday to cover this important announcement. Saskatchewan’s not going to take it, anymore. Kinda like Twisted Sister. For some reason, I keep referencing that song.

… and the horse you rode in on, Charlie!

The member of parliament who on Feb. 5 introduced one of the most draconian laws against free speech (and that’s saying something in recent years) has decided not to run again in the next election. NDP MP Charlie Angus is calling it quits at the end of this term, after 20 years.

He’s the guy who wanted to ban promotion of fossil fuels, having introduced a private members bill which would have meant every ad on Pipeline Online, for instance, could incur up to a half million dollar fine.

About bloody time

Mountain 3 Horizontal Directional Drill pullback in the Fraser Valley between Hope and Chilliwack, BC. Trans Mountain

Six years ago, they scratched dirt on TMX. Finally, FINALLY, it is nearing completion, and expected to enter service May 1.

The original pipeline was built over 65 years ago with equipment that largely didn’t even have hydraulics, and absolutely did not have computers, GPS, laser measurement or anything else like that. And they did it in 16 months.

Also:

Brian Zinchuk on Evan Bray Show: Multilateral wells, oil royalties, TMX pipeline, lithium, helium and more

Carbon and lithium

Working through the periodic table:

Lithium in SK, Part 27: Lithium Bank sells Estevan area land to unnamed buyer

Those Lloydminster folks aren’t too happy about the carbon tax.

Nor are a bunch of other people happy about the carbon tax.

And regarding hydrogen and carbon in the form of methane and other natural gas liquids,

Pembina closes Alliance Pipeline deal with Enbridge

As a note, The Alliance Pipeline runs right through Saskatchewan. I started work on it three weeks after my May, 1999 wedding. I was the only guy on my road bore crew of 12 married once! Most were on their second marriage, a few on their third, one I think on his fourth. At that point you walk into a bar, find a woman you don’t like, and give her your house.

In six weeks, it’ll be 25 years for us. So that pipeline project has some meaning for me.

 

Carbon tax, round ??? Fight!

Conservatives blast pro-carbon price economists as ‘so-called experts’ It doesn’t cause inflation, didn’t you know? Then why were my groceries yesterday 40% more than 2020?

Meanwhile, the carbon tax fight is heating up as the price is about to go up, again, on April. 1, fittingly April Fool’s. Conservative premiers are lying about carbon pricing: Trudeau, while Moe addresses Commons committee.

 

Sorry I didn’t have time to dig into this one myself. Not enough hours in the day. After all, I had to spend half an hour at Sobey’s on Wednesday pointing out to my 17-year-old son how prices of soup, meat, green onions and the like have gone up 40% in the last four years. In the end, a cart which wasn’t even full cost $300, whereas in 2020 it would have cost closer to $210 or so. I kept asking, “And who do we blame for this?”

What do you think the right answer was?

Also, for your reading pleasure:

 

For the first time in about two decades, Saskatchewan changes its oil royalties scheme

Are multi-laterals the next big thing in oil? Saskatchewan bets heavy on it with new incentive program. This is the largest change in oil royalties in decades, as the government hopes to incentivize activity and production. It’s a big shift for a government that for its entire 16 years in office said it wasn’t touching a thing when it comes to royalties.

Let me put this into perspective – for the several years Bill Boyd was energy minister, he always gave the same speech, which basically went like this: “The premier has told me to say thank you. Thank you for the jobs, thank you for the taxes, thank you for the royalties and investment. And we’re not touching a thing when it comes to royalties.”

Usually whenever someone mentions royalty changes, it’s with the intention of raising them. This is the opposite, providing a royalty incentive – NOT a holiday – to get more activity and production going.

 

Navigation