• 7 minutes Does S Arabia Have 2 Mln Barrels in Spare Capacity?
  • 16 minutes Google, Hit With Record $5 billion EU Antitrust fine, To Appeal
  • 23 minutes 67.50 was the low for now, $70 - $76+ back in play
  • 2 hours Rally on Hold, if 69.5 don't break, 62.5 could be next.
  • 14 hours Daimler and BMW Will Beat Tesla in EV Race
  • 5 hours Chile Becomes The Latest Country To Commit To 100% Renewables
  • 20 hours Trudeau Shuffles Cabinet, Seeks To Reduce Reliance On U.S.
  • 2 days EU And Japan Sign Historic Free Trade Deal
  • 5 hours China’s Technology Sector Takes On Silicon Valley
  • 19 hours Chartist predicting a $1 fall, after WTI drops $10
  • 4 hours Where 3 Million Electric Vehicle Batteries Will Go When They Retire?
  • 2 days Venezuela, the largest oil reserve in the world, faces deep shortages of motor oil
  • 2 days Trump-Putin Helsinki Summit And Oil Prices
  • 2 days Germany: We Can No Longer Fully Rely On U.S. White House
  • 16 hours Rio Tinto Says $4-Million Goodbye to Coal
  • 2 days Trump mulling releasing 5 to 30 Mill Barrels
Oil Prices At Risk Of Economic Downturn

Oil Prices At Risk Of Economic Downturn

Oil prices saw a steep…

Wood Mackenzie: Global Peak Oil Demand Expected In 2036

Wood Mackenzie: Global Peak Oil Demand Expected In 2036

Energy consultancy Wood Mackenzie expects…

Oil Helps Alberta Shrink Budget Deficit

Calgary

The recovery in oil prices helped Alberta reduce its budget deficit by US$2.11 billion (C$2.8 billion) in financial 2017/18, to US$6.04 billion (C$8 billion), the province’s Finance Minister said in the release of Alberta’s financial results for the fiscal year.

“I can say we did very well. We have kept our spending at reasonable levels,” Joe Ceci said, as quoted by the Calgary Sun. Although the figure is still among the highest deficits in the history of Alberta, it is significantly lower than the US$7.63 billion (C$10.1 billion) the government projected last year when it passed the budget, and also lower than the US$8.16-billion (C$10.8-billion) budget shortfall booked for the prior fiscal year.

The budget income from the oil industry rose by US$1.44 billion (C$1.9 billion) in the period, to nearly US$3.78 billion (C$5 billion), Ceci said. This was also about a billion dollars more than initial budget estimates for this income.

And yet the Alberta oil industry is far from carefree. Despite the improvement in prices over the last year, producers are increasingly pressured by a lack of pipeline capacity that earlier this month brought the discount of Western Canadian Select to West Texas Intermediate to US$30 a barrel.

Related: Oil Investment In Canada To Drop Despite Rallying Prices

Now the discount has shrunk somewhat thanks to a production outage at Suncor’s Syncrude production and upgrading complex that cut supply by around 300,000 bpd, also easing pressure on pipelines. Producers will be able to get a breather that could last as long as a month, as Syncor said repairs following the power outage that suspended operations at Syncrude could last until the end of July.

Today, the discount of WCS to WTI was US$27.41 a barrel.

In further good news for troubled Alberta oil producers, the Minnesota Public Utilities Commission yesterday approved the route for Enbridge’s Line 3 replacement project and issued the company a certificate of need. At the moment, Line 3, which carries oil from Alberta to Wisconsin, runs at half its capacity because of corrosion and cracking. After the replacement it will be able to ship a lot more crude.

By Irina Slav 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