• 2 minutes Rational analysis of CV19 from Harvard Medical School
  • 4 minutes While U.S. Pipelines Are Under Siege, China Streamlines Its Oil and Gas Network
  • 7 minutes Renewables Overtake Coal, But Lag Far Behind Oil And Natural Gas
  • 5 hours China wields coronavirus to nationalize American-owned carmaker
  • 2 hours Joe Biden the "Archie Bunker" of the left selects Kamala Harris for VP . . . . . . Does she help the campaign ?
  • 15 hours Open letter from Politico about US-russian relations
  • 1 day US will pay for companies to bring supply chains home from China: Kudlow - COVID-19 has highlighted the problem of relying too heavily on one country for production
  • 3 days Trumpist lies about coronavirus too bad for Facebook - BANNED!
  • 3 days China's impending economic meltdown
  • 1 min Trump Hands Putin Major Geopolitical Victory
  • 5 hours COVID&life and Vicious Circle: "Working From Home Is Not Panacea For Virus"
  • 24 hours Trump is turning USA into a 3rd world dictatorship
  • 15 hours Oil Tanker Runs Aground in Mauritius - Oil Spill
  • 2 days Liquid Air Battery
  • 2 days What the heroin industry can teach us about solar power (BBC)
  • 3 days The Truth about Chinese and Indian Engineering
Colombian Oil Major Reports Surprise Profits Despite Market Downturn

Colombian Oil Major Reports Surprise Profits Despite Market Downturn

Ecopetrol’s ability to significantly dial…

Canadian Drillers Are In No Rush To Bring Back Oil Production

Despite the fact that some Canadian oil producers have started to restore the production they had curtailed earlier this year, the pipelines carrying heavy oil to the market are not overflowing as they were a few months ago, according to estimates from analysts and pipeline operators.

Enbridge, the operator of the Mainline—the largest pipeline network in North America—told Bloomberg this week that nominations for heavy crude oil exceeded capacity by just 3 percent for July and by 7 percent for August, compared to shipment nominations typically exceeding capacity by 40 percent.

Due to the price and demand crash in the second quarter, Canada’s oil production slumped to 4.4 million barrels per day (bpd) in May – the lowest output since the middle of 2016 when wildfires crippled oil sands production, the U.S. Energy Information Administration (EIA) said last week.

In the first half of 2020, oil producers in Canada cut their production by 20 percent compared to the average 5.5 million bpd oil production in 2019 because of low demand for fuel in North America and low oil prices that had Canadian producers curtail output.

More than 1 million bpd of curtailed crude oil production in Canada and lower demand in the pandemic have resulted in a rare occurrence in Canada’s pipeline takeaway capacity in recent years—there was space available on the few pipelines taking Canada’s crude oil to the United States in the first half of 2020.

In recent weeks, Canadian oil companies – encouraged by higher oil prices –have brought back some of the crude oil production they had curtailed.

Husky Energy, Cenovus Energy, ARC Resources Ltd, Baytex Energy Corp, and Imperial Oil are restoring part of the production they had curtailed when prices plunged in March and April. Out of the 1 million bpd curtailed production in Canada, at least 20 percent is being brought online again, according to Bloomberg estimates.

By Michael Kern for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News