Oil Pipeline

On Friday, the discount between West Texas Intermediate and Western Canada Select futures (the North American benchmark) widened. WCS for Hardisty, Alberta delivery in September settled at $12.10 per barrel below the U.S. benchmark WTI according to brokerage CalRock. This compares with $11.95 per barrel on Thursday. * The difference between Canadian heavy crude oil and the U.S. benchmark is trending wider. Analysts say that this is due to a return to more normal market conditions after the discount was extremely tight due to wildfires which temporarily disrupted the oil sands production in Canada. The demand for Canadian heavy crude...

On Thursday, the discount between West Texas Intermediate and Western Canada Select futures (the North American benchmark) widened. WCS for Hardisty, Alberta delivery in September settled at $11.95 per barrel below the U.S. benchmark WTI according to brokerage CalRock. It was $11.85 on Wednesday. * The difference between Canadian heavy crude oil and the U.S. benchmark is trending wider. Analysts say that this is due to a return to more normal market conditions after the discount was extremely tight due to wildfires which temporarily disrupted the oil sands production in Canada. The demand for Canadian heavy crude oil, which is...

On Thursday, the Ontario government issued a call for proposals to conduct a feasibility study in order to determine the best method to create a new energy and economic corridor within the state. The proposed corridor would include new Alberta-to Ontario pipelines that would transport Western Canadian gas and oil to refineries located in southern Ontario, as well as to tidewater ports like a new deep sea port off the coast of James Bay. The study will also evaluate the feasibility of port development on James Bay, Hudson Bay, and the Great Lakes as well as a possible refinery along...

Canadian Natural Resources, which has benefited from increased oil and gas production, surpassed Wall Street's expectations for the second quarter profit on Thursday. The Trans Mountain Pipeline Expansion (TMX) has been a boon to oil producers across the country. The TMX has tripled oil flow to Canada's Pacific Coast, from landlocked Alberta. It also raised the price of Canadian crude. Canadian Natural, based in Calgary, Alberta, said that its total production rose to 1,42 million barrels equivalent per day (boepd), from 1.29 millions boepd, a year ago. According to LSEG, the country's biggest oil and gas company posted an adjusted...

Mark Maki, the CEO of Canada's Trans Mountain Oil Pipeline, said that the operator may begin a formal process to gauge commercial interest this year in the first project of several potential ones to increase the capacity of the system. This process, called an "open-season," will determine if there is sufficient interest from shippers to introduce chemical additives which reduce friction in pipelines, allowing increased flow. Maki stated that adding these drag-reducing compounds could increase daily delivery volumes of the 890,000.00 barrels per day pipe by 5% to a 10%. The capital cost would be between C$10,000,000 and C$20,000,000. The...

Four industry sources confirmed on Thursday that the Russian FSB has begun issuing clearances for foreign tankers accessing Black Sea ports. This allows Kazakhstan to resume its oil exports after a short suspension. According to two industry sources, new regulations have temporarily prohibited foreign tankers from loading in Russia's Black Sea ports. This has effectively stopped oil exports out of Kazakhstan that are mainly handled by the Caspian Pipeline Consortium, which is partly owned by U.S. major energy companies. The Kazakhstani energy ministry had said on Thursday, however, that the country has not stopped oil loadings through Russian seaports. The...

A person familiar with this matter has confirmed that Union Pacific, which is the largest U.S. railroad operator in terms of freight, is looking at acquiring Norfolk Southern, to create a coast-to-coast network worth $200 billion. The person stated that the talks are still in their early stages. There is no guarantee that they will continue or any deal will pass what would have to be an extensive, detailed regulatory examination. Both companies declined to make any comments. A deal that unites two of the largest freight rail operators from North America will likely be subject to intense scrutiny by...

Chevron, the U.S. oil major, completed its acquisition of Hess for $53 billion on Friday after it had been negotiating with Hess. The triumphant In a landmark court battle, Exxon Mobil's larger rival won access to the largest oil discovery of recent decades. Chevron’s acquisition of Hess gives the company a 30 percent stake in Guyana’s Stabroek Block. This is one of the largest deals in the oil industry. The U.S. Federal Trade Commission has increased its scrutiny of mergers and acquisitions, especially in the shale oil industry. This includes deals involving Exxon Mobil, Diamondback Energy Occidental Petroleum, and Expand...

The Wall Street Journal reported that Union Pacific was looking at a deal with rival Norfolk Southern. This merger could be a game changer for the industry and attract intense regulatory scrutiny. Norfolk's shares grew 4% in extended trade. The Journal, citing sources familiar with the situation, said that the talks were in an early stage, and there was no guarantee they would lead to a deal or regulatory approval. Union Pacific and Norfolk Southern have not responded to comments immediately. The acquisition could create a railroad titan with a combined value of around $200 billion. This would further consolidate...

Kinder Morgan reported a 24% increase in its second-quarter profits on Wednesday. This was largely due to higher volumes of gas being transported through the company's pipelines. Kinder Morgan, for example, is betting on an increase in demand for LNG from LNG export installations as well as electricity for AI operations and cryptocurrency mining. In 2024 the United States will be the world's largest LNG exporter. Exports are expected to grow even more as new terminals become operational after President Donald Trump lifted the pause on new permits. Richard Kinder, Executive Chairman, said: "Our company's future is bright, with historic...

The discount between West Texas Intermediate and Western Canada Select futures, the North American benchmark, was slightly higher on Tuesday. Brokers said that WCS for August deliveries in Hardisty Alberta was trading at $10.25 per barrel below the U.S. benchmark WTI. This is 5 cents higher than Monday's settlement of $10.30. The summer and the return to road construction season is a strong season for Canadian heavy crude. This is used by U.S. refiners to make asphalt. * The WCS Discount has increased slightly since last week, when wildfire concerns in Canada's oil producing regions temporarily tightened the discount. The...

In an interview with the Calgary Herald published on Sunday, Prime Minister Mark Carney said that a new oil pipeline along the coast of British Columbia is likely to make the list of projects considered to be of national significance by the Canadian government. Carney stated in an interview on Saturday that "given the size of the economic opportunity and the resources, expertise, and knowledge we have that it's highly, highly probable that we will be proposing a pipeline as one of these national-interest projects." The Prime Minister said it was up to the private industry to come up with...

Sources in the trade and industry said that oil exports from Russia's western port are expected to increase this month due to lower crude production at Russian oil plants. However, the OPEC+ production limits may only have a small impact on Moscow’s export plans. The port of Primorsk may increase its daily loadings to an average of 2.0-2.1 million barrels next month, up from the 1.9 million barrels planned for April. Calculations showed that this is an increase of 5-10% per day. On account of low margins, refinery runs could fall by 80,000 to 100,000 barrels per a day. The...

Russia has ordered Kazakhstan’s main oil terminal to shut down two of its three moorings. The terminal handles crude pumped from the U.S. by majors Chevron, Exxon Mobil and others. This comes amid a standoff with OPEC+ and Kazakhstan over excessive production. The operator of the Caspian Pipeline Consortium, which exports about 1% of the global oil supply through the Russian Black Sea Terminal, announced late on Monday that two moorings had been halted after a quick inspection by Russia's transportation watchdog. Trading sources said that if the stoppage lasts more than one week, it could more than half CPC...

The Caspian Pipeline Consortium (CPC), which exports Kazakhstan's oil via the Black Sea, was seen pumping 64.4 million metric lots of oil in 2024 in a most current estimate, further downgrading its exporting prospects, according to an investor. It had initially prepared to export more than 70 million heaps (1.5 million barrels per day) of oil in 2024, up from a. record high of 63.5 million loads in 2023. However, the consortium stated in May it expected its oil. exports to fall 7% except an initial target owing to lower. loadings from Tengiz, a crucial field. The plans might have...

The United States released fresh sanctions on Wednesday on several Russiabased entities over their involvement in the Nord Stream 2 gas pipeline, the State Department said, consisting of brand-new measures versus the operator of the project. The U.S. State Department said in a declaration it was re-imposing sanctions on a variety of entities associated with the building of the pipeline that were already designated, as well as several brand-new owners of vessels already under sanctions. Among those targeted on Wednesday were Russia-based marine services and water transport entities, the state-owned maritime rescue service and over a lots vessels, the State...

The following are the top stories in the Wall Street Journal. Reuters has actually not confirmed these stories and does not vouch for their precision. - U.S. satellite television service provider DirecTV said on Thursday it had ended its contract to acquire Echostar's. satellite tv service, which includes rival Dish TV,. over a stopped working debt-exchange offer. - U.S. President-elect Donald Trump is considering picking Kevin. Warsh as his Treasury secretary with the understanding that he. could later on be chosen to lead the Federal Reserve when Jerome. Powell's term as chair ends in 2026. - U.S. President-elect Donald Trump...

The budget plan committee of Russia's parliament on Thursday approved to increase to 40% from 20% the tax on earnings of stateowned oil pipeline monopoly Transneft starting from 2025. Transneft's shares in Moscow fell by more than 10% after tax rise was authorized throughout a live-streamed committee meeting. Russia is seeking to raise taxes as it needs to fund its military project in Ukraine. A major tax reform is anticipated to create additional profits worth 1.7% of GDP in 2025. Financial experts argue this will not be enough. Deputy financing minister Alexei Sazanov told the committee that the taxes are...

Three industry sources said that Kazakhstan's largest oil field Tengiz operated by U.S. giant Chevron has reduced its oil production by about 21% in average since October 26. This is equivalent to 496,200 barrels of oil per day. As a member OPEC+ (an alliance between OPEC, other top producers, and Russia), the Central Asian nation is bound by output targets. The decline in production may allow Kazakhstan to meet its output quota as part of an agreement with OPEC+. According to one source, the maintenance on the field has led to a decline in production. Tengiz's operator did not respond...

Two market sources said that Novatek, a Russian energy company, launched its new gas condensate processing unit in the Baltic Sea Port of Ust-Luga at the end of August. The new refinery unit can process 3 million tons of gas condensate per year. This liquid feedstock is similar to crude oil. It is then processed into jet fuel, gasoil, heavy naphtha and fuel oil. Novatek didn't immediately respond to an inquiry for comment. Novatek opened the Ust-Luga Complex in 2013, with two refinery units, to process gas produced by its Arctic fields. It also ships oil products and gas condensate...

Russia may hold back oil export cuts for its western ports in October or even increase loadings, regardless of set up rise of readily available primary oil refining capability at regional oil plants which makes it possible for Moscow to increase crude runs, market sources stated. I expect a little rise in Russia's oil exports in October - by several hundred thousand (metric) tons. I question that all the repair work will be completed on time, while the circumstance with oil plants in Russia's south is unclear yet, an industry source said. Russia's primary oil refining capacity is expected to...

Russian business, primarily Tatneft, have actually boosted oil exports to Slovakia and Hungary to replace materials lost after Ukraine sanctions halted exports from Moscowbased Lukoil, Kommersant paper stated on Thursday. Lukoil was prohibited by Kyiv from utilizing the part of the Druzhba, or Friendship, pipeline that goes through Ukrainian territory, partially providing Hungarian and Slovakian refineries. The two landlocked nations alerted of possible fuel lacks from September unless an option was found. Hungarian energy company MOL has still not received required oil volumes, including for the Slovnaft refinery in Bratislava, Kommersant reported, mentioning unnamed sources. Tatneft did not respond immediately...

Slovakia and Hungary on Friday rebuffed a European Commission recommendation that they might replace lost Russian oil supplies via an alternative path through Croatia saying it was too expensive. Products from Russia's biggest oil exporter Lukoil through Ukraine were stopped in July following a ban by Ukrainian authorities on Lukoil utilizing the Druzhba pipeline, which connects Russia to eastern Europe. Hungary and Slovakia earlier this month asked the European Commission to step in and moderate as the threatened their security of supply. But they are declining the European Commission's proposition to usage spare capability on the JANAF Adriatic pipeline in...

Hungary and Slovakia have threatened to take Ukraine to court for blocking materials of oil by Russian manufacturer Lukoil through the Sovietbuilt Druzhba (Relationship) pipeline, the last remaining path for Russian crude to Europe. The following sets out the relevant realities. RUSSIA'S REMAINING OIL LINK TO EUROPE After Moscow's invasion of Ukraine in 2022, the European Union (EU), which used to purchase up to a third of its fuel from Russia, enforced sanctions and stopped buying Russian oil. Nevertheless, it offered 3 member states - Hungary, Slovakia and the Czech Republic - exemptions from sanctions because of their dependence on...