Wall to be honoured by Saskatchewan oil industry
Former Premier Brad Wall will be inducted into the Saskatchewan Oil and Gas Hall of Fame at the upcoming Saskatchewan Oil and Gas Show on June 5.
During his tenure as premier, Wall did something most politicians in the rest of Canada wouldn’t. He stood up for and celebrated our energy industry.
Crescent Point no more, and more on Rex
Crescent Point Energy, which was briefly Saskatchewan’s largest oil producer and a corporate darling, is continuing its shift to Alberta focus. Last week saw the sale of one of its last major remaining properties in Saskatchewan, and on Friday, it changed its name.
Oh, and it lost a pile of money in that sale, it seems. If they were going to lose so much money, why the rush to sell it?
And hockey had Gretzky, while columnists like myself had Rex Murphy. He wasn’t afraid to be an ardent supporter of oil and gas, in large part because it proved to be the salvation of Newfoundland when the cod fishery collapse.
End Of Oil
Suncor reported record upstream production of 835,000 barrels per day during the quarter, including all-time high oilsands production of 785,000 barrels per day.
The company says it achieved record refined product sales of 581,000 barrels per day, and saw its highest-ever first quarter refining throughput at 455,000 barrels per day with 98 per cent overall refinery utilization.
Going nuclear: Moe says Estevan’s likely location for SMRs
Moe says Estevan likely location for small modular reactors.
In the story I talk a bit about how the province and SaskPower are a bit cagey about definitively saying, “Yes, for sure, damned rights, we’re building reactors.”
But you can be sure, “Yes, for sure, damned rights, we’re building reactors.”
Did I call it, or did I call it?
Chain Reaction
In the final year in which both nuclear reactors were operational, the Indian Point Energy Center (IPEC) generated 16.7 terawatt hours of reliable baseload power from its 2.1GW of combined capacity—enough to meet roughly 25% of New York City’s total demand. By mid-2020, only one of those reactors was still running, but it managed to do so for the entire calendar year without interruption, turning in a perfect capacity factor of 100%. Not bad for a facility that sits on just 240 acres of land.
Down The Primrose Path
At the same time that French President Emmanuel Macron is threatening to send troops to Ukraine to fight against Russia, his country is fueling the Russian war effort by purchasing €600 million worth of natural gas from Moscow in the first three months of 2024.
“The same architects of our insane energy policy… are also the architects of our military strategy.”
I believe I’ve mentioned this.
The team riffs with Doomberg, a renowned energy analyst, to discuss a range of issues from the global energy landscape to geopolitical tensions and the changing nature of warfare. The conversation also delves into the intricacies of the global natural gas market, the impact of sanctions on Russia, and the potential future of nuclear energy.
Doomberg is a good, though pricey Substack to subscribe to. I wish more of his material was open to free viewing.
Hey, about that pipeline?
Brian Zinchuk: If Poilievre wins a massive majority, can we PLEASE build the Energy East Pipeline?
(I’m fairly certain Premier Moe is tired about me asking about this. I was still talking about it two years ago, which was four years after it was supposed to have been completed. But it’s worth a shot.)
UPDATE: It appears Premier Scott Moe agrees:
— Scott Moe (@PremierScottMoe) March 14, 2024
There’s No Business Case For LNG Exports
A huge wave of liquefied natural gas is about to flood a world that’s supposed to be transitioning away from fossil fuels.
More than $235 billion has been plowed into the next slate of projects for the super-chilled fuel since 2019. The first of those plants will come online later this year, and a further $55 billion may be invested through 2025, Rystad Energy forecasts show.
That will help drive an historic 70% jump in LNG export capacity by the end of the decade, according to Baker Hughes.
The industry is essentially betting the world will need a lot more of the fuel as Europe rushes to replace piped Russian gas and Asia — particularly China — shifts away from coal.
Just today, US producer Chesapeake Energy Corp. agreed to snap up a key rival, capitalizing on demand for shipments from the Gulf Coast.
Massive export projects from the US to Qatar will cement LNG in the global energy mix for decades, especially with some purchasing contracts going into the 2050s — beyond targets set by many nations to become carbon-neutral.
Related: It’s not an easy time to be a politician.
Did we just miss out on a mini oil boom? Sure looks like it
The old bumper sticker used to say something like, “Lord, please grant me another oil boom, and I promise not to piss it away this time.”
The "one more oil boom" bumper sticker is back. #Alberta pic.twitter.com/PgAcALrAgr
— Justin Giovannetti (@justinCgio) September 20, 2016
Well, oil prices were up in 2023, but oil drilling in Saskatchewan certainly didn’t reflect that. So Pipeline Online asked Premier Scott Moe what Saskatchewan is going to do about it.
Saskatchewan’s Year in Energy: Premier Scott Moe, 2023: Part 2 Oil Drilling, or Lack Thereof
Across the border to the west, The last coal-fired power station in Alberta will soon be out of coal. A few weeks ago, a notice posted to the the Alberta Electric System Operator website provided an update on its conversion to natural gas.
The end of coal-fired power in Alberta is nigh
Also, from Canadian Press:
Regulator denied Trans Mountain variance request due to pipeline safety concerns
And this one is a doozy. This is the Liberal government trying to cement into place carbon pricing so that even if the government changes, nothing can be done about it.
Feds sign first carbon contract for difference with Calgary-based Entropy
Saskatchewan’s Year in Energy: Premier Scott Moe, 2023: Part 1, Fighting the Feds
Energy, and the “energy transition” being forced upon Canadians by the federal government, is becoming the dominant story, affecting all our lives and everything we do. In his year-end interview with Saskatchewan Premier Scott Moe, Pipeline Online dives deep into the biggest energy issues of the past year.
This is Part 1: Fighting the Feds.
Part 2 will focus on addressing low oil drilling activity, despite decent oil prices.
Part 3 discusses the Clean Electricity Regulations and their impact, and widespread adoption of nuclear power.
Part 4 talks about lithium and helium development, and ends with Christmas greetings.
COP28: Canadian gov’t focused on shutting down oil and gas while Saskatchewan was speaking for it
Feds “focused on targeting the shutdown of a complete industry, regardless of whether they’re going to meet their emissions targets or not,” says Saskatchewan Premier Moe in Dubai
Pipeline Online speaks with Premier Scott Moe at conclusion of Dubai COP28 trip. (Another reporter asked questions, too, like do you believe the planet is warming…?
… And the horse you rode in on: Sask on Guilbeault’s emissions cap
Cutting methane is one of the most cost-effective & impactful actions to tackle the climate crisis.
We announced strengthened methane regulations from the oil & gas sector to reach 75% less methane emissions by 2030, aligned with the U.S.https://t.co/FRw7N8oD9u#COP28 pic.twitter.com/5Zw7dyHsHz
— Steven Guilbeault (@s_guilbeault) December 4, 2023
Guilbeault’s latest application of a knee to the neck of the oil and gas industry in Canada:
Canada proposes new methane emissions rules for oil-and-gas sector
To which Saskatchewan responds:
‘A production cap by default’: Sask gov’t reacts to Guilbeault’s proposed methane regulations.
Ever hear about the Output Based Pricing? It’s basically a third form of carbon tax. Well, we’re going to use its proceeds to build reactors.
Saskatchewan to use Output Based Pricing to fund small modular reactor
In related news, in case you missed it Sunday night because I messed up my scheduling, a great column on Saskatchewan telling the feds to FU on the carbon tax on home heating:
Y2Kyoto: Reality Bites
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.
Forget a northern energy corridor to Hudson Bay – just do it within Manitoba instead
There’s an election today in Manitoba, so all bets are off if the NDP forms government. But on the off chance that the Conservatives hold power, here goes. The conservative premiers of Alberta, Saskatchewan and Manitoba have been talking about building a new port at Port Nelson, Manitoba, on Hudson Bay. They would build a corridor of pipelines running oil and natural gas to said port, as well as rail, allowing potash exports. Maybe grain, too? And Power from Manitoba could run west. Anyhow, here’s an alternative way to look at it, probably for a lot cheaper than building over 1,000 km of pipeline through some of the hardest rock on the planet.
And on the topic of energy, any business in Saskatchewan who wants to get in on building multi-billion dollar nuclear reactors should get someone down to Regina Wednesday morning to attend this conference.
And the Energy Transition Podcast talks about France’s Macron going full Trudeau.
And the Coastal GasLink Pipeline is now 98 per cent complete.
Down The Primrose Path
Daily Energy Report:Spain is a gas gate for the EU, but also the backdoor for Russian LNG.
During the first eight months of this year, Russian LNG supplies to Spain soared 62%, reaching 5 bcm up from 3.1 bcm for the same period last year (Figure 5). Spain’s growing appetite for Russian LNG pushed up its share to 19.7% of total imports until the end of August this year, from 10.9% in 2022. The EOA previously estimated that Spain, as well as other EU member states, will find it difficult to halt Russian gas supplies. Stopping imports of Russian gas under current market conditions would put additional pressure on Europe to secure its gas needs.
Spain enjoys a secure gas supply network thanks to its diversified supply routes, seven operating LNG terminals, and robust storage facilities, allowing it to become a gas hub for Europe in the future as the continent curbs its dependence on Russian gas. For now, however, Spain is acting as a back door for Russian LNG flows into Europe.
DER is a good newsletter, consider subscribing.
TC Energy is dumping Keystone Pipeline in spinoff
TC Energy, which I still think of as TranCanada, from back when I built pipelines for them, is spinning off its oil pipelines, which is principally the Keystone system.
I was searching for the best metaphor. “Like hot garbage,” kept coming to mind. I settled on dumping an ex-wife. My column on this: TC Energy dumping Keystone Pipeline like a despised, soon-to-be-ex-wife. The Keystone name is so verboten, it is barely mentioned in the press release or slide deck.
This is entirely because the anti-pipeline, anti-oil movement won on Keystone XL and Energy East. Can’tada and BANANAS USA won, and this is the result. (Build Absolutely Nothing Anywhere Near Anyone, Seriously, U Stup1d A@#$#@#)
The West Wants Out
What are you waiting for?
If it wasn’t clear before, it is now.
The Trudeau government doesn’t want to just reduce emissions in our energy sector, they want to completely shut down our energy sector. https://t.co/X635j5V1Ga
— Scott Moe (@PremierScottMoe) July 15, 2023
Reactors are like potato chips …
… you can’t stop at just one.
Ontario made its second major nuclear announcement last week, and it has direct implications on SaskPower and Saskatchewan.