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Fire in Alberta threatens oil production, helps boost price
Smokin Joe:
Fire in Alberta threatens oil production, helps boost price
http://www.pennenergy.com/articles/pennenergy/2016/05/fire-in-alberta-threatens-oil-production-helps-boost-price.html?cmpid=EnlDailyPetroMay92016&eid=290980193&bid=1398232
AP
May 6, 2016
The massive wildfire in the heart of Canada's oil country is helping send crude prices higher.
Benchmark U.S. crude rose 34 cents to $44.66 a barrel Friday in New York after earlier dropping by nearly 2 percent. Oil prices often spike when there is concern that production could be curtailed.
Canada is the leading exporter of crude oil and natural gas to the United States, according to figures from the Energy Information Administration. Canada sends about 100 million barrels of crude and 240 billion cubic feet of natural gas per month to the U.S.
S&P Global Platts, which tracks the energy industry, estimated that up to 820,000 barrels a day of crude oil production were shut in by the fire, although the number could be lower if facilities were operating below peak capacity.
"It definitely is helping to boost the prices, although (the increase) is not that high considering the amount of crude that is being threatened," said Jeff Mower of Platts. He attributed the restrained market reaction to high inventories of crude in the U.S., especially in the Midwest, where much of the Canadian crude goes...
http://www.pennenergy.com/articles/pennenergy/2016/05/fire-in-alberta-threatens-oil-production-helps-boost-price.html?cmpid=EnlDailyPetroMay92016&eid=290980193&bid=1398232
IsailedawayfromFR:
--- Quote from: Smokin Joe on May 09, 2016, 06:13:32 pm ---Fire in Alberta threatens oil production, helps boost price
http://www.pennenergy.com/articles/pennenergy/2016/05/fire-in-alberta-threatens-oil-production-helps-boost-price.html?cmpid=EnlDailyPetroMay92016&eid=290980193&bid=1398232
AP
May 6, 2016
The massive wildfire in the heart of Canada's oil country is helping send crude prices higher.
Benchmark U.S. crude rose 34 cents to $44.66 a barrel Friday in New York after earlier dropping by nearly 2 percent. Oil prices often spike when there is concern that production could be curtailed.
Canada is the leading exporter of crude oil and natural gas to the United States, according to figures from the Energy Information Administration. Canada sends about 100 million barrels of crude and 240 billion cubic feet of natural gas per month to the U.S.
S&P Global Platts, which tracks the energy industry, estimated that up to 820,000 barrels a day of crude oil production were shut in by the fire, although the number could be lower if facilities were operating below peak capacity.
"It definitely is helping to boost the prices, although (the increase) is not that high considering the amount of crude that is being threatened," said Jeff Mower of Platts. He attributed the restrained market reaction to high inventories of crude in the U.S., especially in the Midwest, where much of the Canadian crude goes...
http://www.pennenergy.com/articles/pennenergy/2016/05/fire-in-alberta-threatens-oil-production-helps-boost-price.html?cmpid=EnlDailyPetroMay92016&eid=290980193&bid=1398232
--- End quote ---
I had a musing years ago that this could be the largest oil field in the world if some paradigms were removed from the equation.
Lots of unconventional gas exist in this part of Canada removed from a market, making it similar to Western Australia. The Canadians are following the WA example of getting the gas to the coast, installed LNG and export. Very expensive.
Instead, I had thought if they just sent it to Alberta to be burnt to generate steam at Athabasca, it would create much more value.
Particularly as Athabasca has an unlimited amount of heavy oil available. It could rival SA's giant fields and conveniently sits nearby the largest oil market in the world, the USA.
Smokin Joe:
--- Quote ---The Canadians are following the WA example of getting the gas to the coast, installed LNG and export.
--- End quote ---
If they can keep the ecowhackos from blowing up pipelines... The Asian market for NGLs and LNG is unreal compared to the US, but you have to get it there...
thackney:
--- Quote from: Smokin Joe on May 10, 2016, 02:31:40 am ---If they can keep the ecowhackos from blowing up pipelines... The Asian market for NGLs and LNG is unreal compared to the US, but you have to get it there...
--- End quote ---
While percentagewise is still a great improvement over local, it is not much in dollars compared to the price of transport and conversion. Nat Gas prices fell with oil.
http://www.ferc.gov/market-oversight/mkt-gas/overview/ngas-ovr-lng-wld-pr-est.pdf
Smokin Joe:
--- Quote from: thackney on May 10, 2016, 12:23:39 pm ---While percentagewise is still a great improvement over local, it is not much in dollars compared to the price of transport and conversion. Nat Gas prices fell with oil.
http://www.ferc.gov/market-oversight/mkt-gas/overview/ngas-ovr-lng-wld-pr-est.pdf
--- End quote ---
I knew they had dropped, but that is even more than I had last seen. Thanks!
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