And here’s an analysis of why. It has a lot to do with the fact Nova Scotia can still pay for its hospitals with natural gas money, just natural gas produced in Alberta and Saskatchewan. And it has more to do with Guilbeault announcing a defacto production cap by banning venting and flaring.
As a side note, two years ago I ran into the consultant whose job it was to shut down, abandon and clean up this project. He was the company man looking after the drilling of the first lithium well in Canada, near Torquay, Saskatchewan. I never got around to writing a story about it, dammit. Not enough hours in the day.
And if anyone feels like asking CJME/CKOM why Zinchuk isn’t scheduled to do his regular energy spot the first Wednesday of the month, as he did with Gormley:
Anas Alhajji:As COP28 is being held in Dubai with the oil industry participating in such events for the first time, the oil industry wasted no time making its case. We decided to repost this article for everyone to read.
EOA’S MAIN TAKEAWAYS
1. Data indicates that future demand for oil and gas is UNDERESTIMATED, while demand destruction is HYPED.
2. Global energy demand is increasing, making decarbonization more difficult to achieve, and the process of replacing fossil fuels slower.
3. Despite massive spending on renewables in the last two decades, fossil fuels remain the dominant source of energy in the world, even in Europe.
4. Coal remains the dominant source of electricity in India and China.
5. Oil is rarely used in power generation in the OECD, China, and India. Doubling or tripling solar and wind energy sources will have a very limited impact on oil demand. However, the failure of renewable energy, and consequent power shortages, will have a significant impact on oil demand.
6. As LNG prices reached a record high in 2022, oil use in power generation increased. The level of substitution among various energy sources last year was unprecedented.
A huge change occurred in Saskatchewan media, with the retirement of John Gormley, the king of talk radio in the Land of Living Skies for the last 25 years. His replacement is former Regina Police Service chief Evan Bray.
Whatever you have to say about electric vehicles, the phone or laptop you’re reading this on has a lithium battery. And all the services being used to develop this in Saskatchewan are oilfield services companies.
Also: Senator Pamela Wallin was doing video interviews decades before Zoom existing. Last week she spoke to Pipeline Online editor and owner Brian Zinchuk regarding electrification, EVs, fuel economy, nuclear power, heat pumps, carbon tax and whole lot more.
The problem is, except for refining, oil sands and big inch pipeline construction, unions are all but non-existent in the oilpatch. But hey, the legislation also includes five year plans, with the exact implications of what that means. Total transformation of the economy.
This is significant news. I’ve been saying for a while that Crescent Point has lost interest in Saskatchewan, and any day now we can expect the company to sell off its assets here. Note that both Shaunavon and Weyburn have rinks called “Crescent Point Place” and the lounge at the Estevan rink is similarly named. I pointed out in the story the company for a brief time was Saskatchewan’s largest oil producer. They did over 20 acquisitions (actually closer to 30, I believe), most of them in Saskatchewan, creating many millionaires and making a lot of people rich. But these days it is readily apparent their interest is elsewhere. The only references to Saskatchewan were, at the top of the list of highlights, that this deal “Transforms company into a Montney and Kaybob Duvernay focused E&P with complementary long-cycle assets in Saskatchewan.”
Also noteworthy – with this announcement they are increasing the Alberta proportion of their capital expenditure to 80%, up from the 70% from just a few weeks ago. It wasn’t that long ago, it was more like 95% in Saskatchewan.
So if you want to know why our drilling rig count is down so much, why $80 to $90 oil doesn’t have activity shooting up in this province – here’s your answer.
If someone’s going to make billions in the lithium world, maybe we in Saskatchewan should put some of that in our pocket. One of the three active lithium explorers in Saskatchewan is moving closer to commercialization. This is a video I did showing what’s going on. Lots of cool shots of earthmovers.
Look out, shale. Competition from the deep sea is roaring back.
The Big Three oilfield service providers — SLB, Baker Hughes Co. and Halliburton Co. — have said for months the hottest new spots to drill are shifting from the West Texas Plains to the waters off South America and elsewhere. Now this week, Chevron Corp. made a $53 billion bet on the deep-sea oil deposits off Guyana by agreeing to buy Hess Corp.
Meanwhile, Noble Corp., the biggest offshore drilling contractor by market value, is gearing up for explorers to put as many as 10 deep-water rigs back to work next year. Compare that with the Federal Reserve Bank of Dallas’ latest survey of shale executives, who said the number of US onshore rigs is apt to remain flat for the next six months.
Guyana and South America, eh? Further down the page…
Siemens Energy AG is in talks with the German government about securing state guarantees as it struggles to shore up its troubled wind-turbine unit. The company is seeking about €16 billion ($16.9 billion) in backstops over two years, according to people familiar with the matter.
I’ve been writing about the phenomenal growth of the North Dakota Bakken for the better part of 15 years. In 2008, the state produced around 90,000 barrels per day. By 2014, it was something like 1.2 million. Currently it’s around a million or so. A major player was Hess Corporation, which currently produces about 175,000 barrels of oil equivalent in North Dakota. But curiously, none of the supermajor oil companies were involved in North Dakota. Well, that changed, as Hess is being bought by Chevron.
Kruger said his comments were misinterpreted as Suncor ending its commitment to curbing its carbon footprint, when the focus is really on ensuring the company is making profits now to be able to afford the required investments in decarbonization.
Also, North American Helium opens its seventh helium processing facility in Saskatchewan. For those who might be counting, that’s the fourth in less than a year.