Oil Production Cuts

[Mitsu3000gt]

Feb diffs are out, SW is -3.08, LSB is -2.64, WCS is -9.65. Huge improvement even from January but rumors are apportionment is still going to be really bad for Feb on Enbridge. The diffs won't stay this tight either but it sure is a nice change from December and the $5-10/bbl netbacks a lot of people were seeing.

[ZenOps]

Shouldn't the USA be paying Canada more because we are such good friends? That's my logic.

[ExtraSlow]

So, one of the things that was supposed to happen to allow curtailment to end was the opening of Enbridge Line 3 replacement in the Q4 2019. HAPPY MONDAY KIDS!!!
https://edmontonjournal.com/business...a-oil-industry

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In a major blow to the Canadian oil industry, Enbridge Inc. now expects the replacement and expansion of its Line 3 crude oil pipeline to be in service about one year later than expected.

The project, previously slated to start shipping crude in the fourth quarter of this year, is now expected to enter service in the second half of 2020, the Calgary-based company said Friday. Construction is being pushed back because the Minnesota permitting process won’t be complete until November, and the federal permits won’t be received until as long as 60 days after that.

The delay is a crushing setback for Canadian oil producers, who have suffered from a lack of pipeline space that has made it difficult to ship their crude to refineries, hammering prices. Enbridge’s Line 3 is particularly important because the Alberta government was counting on its startup this year to let it end mandated production cuts that were implemented to cope with a glut of crude.

The postponement of the $9 billion Line 3 expansion, which would add 370,000 barrels of daily shipping capacity, is the latest in a string of cancelled or stalled projects that have plagued the Canadian energy industry. TransCanada Corp.’s Keystone XL has been on the drawing board for more than a decade amid environmental and landowner opposition. The Trans Mountain expansion, which Canada’s government bought from Kinder Morgan Inc. to save it from cancellation, has been stalled amid legal challenges.

[killramos]

Down 5% on the open.

Literally 2 weeks ago they came out and said they had full confidence it wouldd be onstream Q4... I hate being a shareholder of this pile of dogshit.

[ExtraSlow]

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I hate being a shareholder of this pile of dogshit.

I assume you mean any Canadian energy production or transportation company and not just Enbridge.

[killramos]

Enbridge in particular

[Xtrema]

So oil glut again, price goes down and train cars is best idea ever?

[killramos]

Apportionment is still in effect. So no, no oil glut.

But people who were forecasting apportionment to end in Q4 will be very disappointed.

Don’t worry though, Notley is going to let diffs riss enough to make her rail plan not be underwater anymore.

[mr2mike]

Oil by rail is the same as using horse and buggy when you've got technology for a commuter car.
Can't wait to see The Hipster moving from bikes to horse and buggy in an attempt to out Hipster the other Hipsters.

[msommers]

"Latest technology in the modern vintage movement: Beard hair-powered trolleys"

The marketing language for such a "socially-responsible vehicle" would be along the lines of this place:

https://yychotchocolate.com/contestants/soughtandfound

SOUGHT AND FOUND COFFEE ROASTERS
Our Real Chocolate x Milk features the 2018 International Chocolate Awards Canada and Americas regional gold medals winner, the 70% Tumaco Colombia dark chocolate, ethically sourced and locally hand crafted from bean to bar by Kin + Pod, completed with AB local, traceable, ethical and organic milk by Vital Green Farms, carefully steamed to create the desirable fluffy texture and integrate perfectly to make a rich, creamy and flavourful hot chocolate. Our goal is to let these top-notch ingredients speak for themselves.

Is their hot chocolate great tasting? Probably, but I'll never give them a dollar when I read such vomit marketing. Someone was hungover when typing that ad up and kept throwing all the words they knew at it just to make the deadline.

[HiTempguy1]

That is one of the most pretentious things I've ever seen. Its fucking hot chocolate for christ's sake.

[ExtraSlow]

Well, the Canadian side of the Enbridge Line 3 replacement project is coming onstream next week, which opens up ~100,000 bbl/d extra capacity, or it does if you include other smaller optimization projects. Need the US side of the project to get full benefits.
https://calgaryherald.com/business/e...a-long-journey

Stuff like this will help give confidence to slowly chip away at the production cuts, but for now, some form of apportionment is going to be maintained. Also, keep those trains rolling, we're going to need em . . . .