Latest news with #CenovusEnergyInc.
Edmonton Journal
04-07-2025
- Business
- Edmonton Journal
Financial Post Alberta oil production falls to lowest level since 2023
Article content Alberta's oil production fell to the lowest in two years in May as wildfires and maintenance work crimped oilsands output. Article content Output from Canada's biggest oil-producing province slid 397,000 barrels a day to 3.61 million barrels a day in May, the lowest since May 2023, provincial data released Thursday show. Flows from the oilsands, the world's third-largest reserve of crude, dropped 384,000 barrels a day. Output from oilsands mines slid to the lowest in more than four years. Article content Article content Article content Production was hurt by wildfires, including one near Cold Lake that prompted Cenovus Energy Inc., Canadian Natural Resources Ltd. and MEG Energy Corp. to curtail about 350,000 barrels a day in late May and early June. Oil sands producers also reduced output for maintenance work, with MEG Energy's production dropping to the lowest in data stretching back to 2019. Article content Article content Lower output from Canada, the world's fourth-largest oil supplier and the biggest foreign seller to the U.S., has combined with falling production from Mexico and a ban on Venezuelan flows to strengthen heavy crude oil prices. Article content In Alberta, heavy Western Canadian Select's discount to U.S. benchmark West Texas Intermediate narrowed to less than US$10 a barrel from early April into late June, compared with an average US$15 a barrel in the past five years, according to General Index prices. On the Gulf Coast, Canadian heavy oil's discount to WTI is trading near the smallest since early 2022, according to Link Data prices. Article content
Calgary Herald
03-07-2025
- Business
- Calgary Herald
Financial Post Alberta oil production falls to lowest level since 2023
Alberta's oil production fell to the lowest in two years in May as wildfires and maintenance work crimped oilsands output. Article content Output from Canada's biggest oil-producing province slid 397,000 barrels a day to 3.61 million barrels a day in May, the lowest since May 2023, provincial data released Thursday show. Flows from the oilsands, the world's third-largest reserve of crude, dropped 384,000 barrels a day. Output from oilsands mines slid to the lowest in more than four years. Article content Article content Production was hurt by wildfires, including one near Cold Lake that prompted Cenovus Energy Inc., Canadian Natural Resources Ltd. and MEG Energy Corp. to curtail about 350,000 barrels a day in late May and early June. Oil sands producers also reduced output for maintenance work, with MEG Energy's production dropping to the lowest in data stretching back to 2019. Article content Article content Lower output from Canada, the world's fourth-largest oil supplier and the biggest foreign seller to the U.S., has combined with falling production from Mexico and a ban on Venezuelan flows to strengthen heavy crude oil prices. Article content In Alberta, heavy Western Canadian Select's discount to U.S. benchmark West Texas Intermediate narrowed to less than US$10 a barrel from early April into late June, compared with an average US$15 a barrel in the past five years, according to General Index prices. On the Gulf Coast, Canadian heavy oil's discount to WTI is trading near the smallest since early 2022, according to Link Data prices. Article content
Yahoo
02-06-2025
- Business
- Yahoo
Alberta wildfires shut down about 7% of Canada's oil production
(Bloomberg) — Wildfires in Canada's energy heartland of Alberta have shut down almost 350,000 barrels of daily heavy crude production — about 7% of the country's output — as a major blaze near the province's eastern border menaces oil sands operations. Billionaire Steve Cohen Wants NY to Expand Taxpayer-Backed Ferry Where the Wild Children's Museums Are The Economic Benefits of Paying Workers to Move Now With Colorful Blocks, Tirana's Pyramid Represents a Changing Albania At London's New Design Museum, Visitors Get Hands-On Access Cenovus Energy Inc., MEG Energy Corp. and Canadian Natural Resources Ltd. are among the companies that curtailed output because of the 61,500 hectare blaze near the Saskatchewan border. The so-called Caribou Lake Wildfire and other out-of-control blazes at least 10 hectares in size were within roughly 10 kilometers of about 470,000 barrels a day of oil production early Monday. Canada's prairie provinces of Alberta, Saskatchewan and Manitoba have seen an eruption of wildfires, prompting the evacuations of thousands of people away from potential danger. A total of 26 wildfires were burning out of control early Monday in Alberta, which is the source of most of Canada's oil output. The loss of supplies from the world's fourth-largest oil producer comes at a time when heavy crude supplies already are strained. Oil sands operators had recently curtailed output for regular maintenance, and tightening sanctions have crimped supplies of similar heavy crudes from Venezuela. Cenovus said Sunday that it expects to resume operations at its 238,000 barrel-a-day Christina Lake oil sands site in the 'near term' after shutting output on May 29. MEG Energy's nearby oil sands site was affected by a power cut due to the blaze, delaying the restart of a 70,000 barrel-a-day section of the facility after maintenance. Canadian Natural evacuated workers from its Jackfish 1 oil sands site, shutting 36,500 barrels a day of output. YouTube Is Swallowing TV Whole, and It's Coming for the Sitcom Millions of Americans Are Obsessed With This Japanese Barbecue Sauce Mark Zuckerberg Loves MAGA Now. Will MAGA Ever Love Him Back? Will Small Business Owners Knock Down Trump's Mighty Tariffs? Trump Considers Deporting Migrants to Rwanda After the UK Decides Not To ©2025 Bloomberg L.P. Sign in to access your portfolio
Yahoo
02-06-2025
- Business
- Yahoo
Alberta Wildfires Shut Down About 7% of Canada's Oil Production
(Bloomberg) -- Wildfires in Canada's energy heartland of Alberta have shut down almost 350,000 barrels of daily heavy crude production — about 7% of the country's output — as a major blaze near the province's eastern border menaces oil sands operations. Billionaire Steve Cohen Wants NY to Expand Taxpayer-Backed Ferry Where the Wild Children's Museums Are The Economic Benefits of Paying Workers to Move Now With Colorful Blocks, Tirana's Pyramid Represents a Changing Albania At London's New Design Museum, Visitors Get Hands-On Access Cenovus Energy Inc., MEG Energy Corp. and Canadian Natural Resources Ltd. are among the companies that curtailed output because of the 61,500 hectare blaze near the Saskatchewan border. The so-called Caribou Lake Wildfire and other out-of-control blazes at least 10 hectares in size were within roughly 10 kilometers of about 470,000 barrels a day of oil production early Monday. Canada's prairie provinces of Alberta, Saskatchewan and Manitoba have seen an eruption of wildfires, prompting the evacuations of thousands of people away from potential danger. A total of 26 wildfires were burning out of control early Monday in Alberta, which is the source of most of Canada's oil output. The loss of supplies from the world's fourth-largest oil producer comes at a time when heavy crude supplies already are strained. Oil sands operators had recently curtailed output for regular maintenance, and tightening sanctions have crimped supplies of similar heavy crudes from Venezuela. Cenovus said Sunday that it expects to resume operations at its 238,000 barrel-a-day Christina Lake oil sands site in the 'near term' after shutting output on May 29. MEG Energy's nearby oil sands site was affected by a power cut due to the blaze, delaying the restart of a 70,000 barrel-a-day section of the facility after maintenance. Canadian Natural evacuated workers from its Jackfish 1 oil sands site, shutting 36,500 barrels a day of output. YouTube Is Swallowing TV Whole, and It's Coming for the Sitcom Millions of Americans Are Obsessed With This Japanese Barbecue Sauce Mark Zuckerberg Loves MAGA Now. Will MAGA Ever Love Him Back? Will Small Business Owners Knock Down Trump's Mighty Tariffs? Trump Considers Deporting Migrants to Rwanda After the UK Decides Not To ©2025 Bloomberg L.P. Sign in to access your portfolio
CBC
20-02-2025
- Business
- CBC
Tariffs could force 'rebalancing away' from U.S. for oil exports, says Cenovus
The threat of U.S. tariffs on Canadian energy won't affect planned spending by Cenovus Energy Inc., but the company says such levies may prompt a "rebalancing away from the United States" when it comes to where it ships its oil. U.S. President Donald Trump's plan to slap widespread tariffs on U.S. imports of Canadian goods is on hold until March. Trump had previously signed an executive order that would impose a 10 per cent tax on Canadian energy products, along with 25 per cent tariffs on all other goods. Speaking on Cenovus's fourth-quarter earnings call on Thursday, president and CEO Jon McKenzie said the tariffs could affect "so many of the variables that impact our cash flow," including oil prices. "But there's also knock-on impacts on the price of condensate, the price of natural gas, which are all inputs to our business," McKenzie told analysts. He added U.S. refining margins and foreign exchange rates could also take a hit if the tariff threat comes to pass. "So when you look at the spectrum of all the things that impact our cash flow, it's really not clear to us who's going to pay which portion of the tariff, as well as what the overall impact would be to the company," he said. "If we are in a world, unfortunately, in March where tariffs do come, we will watch those price signals and react accordingly." That could include a pivot when it comes to where oil products transported along the Trans Mountain pipeline are exported, said Geoff Murray, executive vice-president of commercial for Cenovus. "I think we would see … a rebalancing away from the United States and the balance to head globally," he said. There has generally been a 50/50 split between California and Asia for deliveries of oil transported along the pipeline, said Murray. "Without tariffs, that continues unabated. Should tariffs show up, that would obviously look to an economic reason for rebalancing," he said. "We expect that would obviously drive as much volume as possible through Trans Mountain, perhaps beyond the contracted capacity, provided that volume can find a home out the dock, and then it would preferentially head globally, rather than to California." Asked if the tariffs would affect Cenovus's spending plans for 2025, McKenzie said the company has already limited its capital spending to "fairly modest levels" and is in the process of completing a few major projects. "I don't think there's anything on the tariff side that would change any of our operating plans this year or in the near future," he said. McKenzie highlighted milestones associated with a few of its projects in the fourth quarter, including the mechanical completion of the Narrows Lake pipeline. The 17-kilometre pipeline connecting its Narrows Lake oilsands reservoir to its Christina Lake main processing facility is expected to result in up to 30,000 barrels per day of additional production from the site, starting in mid-2025. Mechanical work was also completed on the concrete gravity structure and topsides for the West White Rose project off the coast of Newfoundland. West White Rose, a multibillion-dollar extension of the existing White Rose offshore oilfield, is now 88 per cent complete and on pace to produce its first oil in 2026, McKenzie said. On Thursday, the Calgary-based company reported its fourth-quarter profit and revenue fell compared with a year ago as it saw lower oil and natural gas prices. Cenovus said it earned $146 million, or seven cents per diluted share, for the quarter ended Dec. 31, down from $743 million, or 32 cents per diluted share, in the final three months of 2023. Cenovus said its adjusted funds flow amounted to 87 cents per diluted share in its latest quarter, down from $1.08 per diluted share a year earlier. Revenue totalled $12.8 billion, down from $13.1 billion a year earlier. Total upstream production for the quarter amounted to 816,000 barrels of oil equivalent per day, up from 808,600 a year earlier. Downstream throughput amounted to 666,700 barrels per day, up from 579,100 in the fourth quarter of 2023. Cenovus's net debt at the end of 2024 was $4.6 billion, an increase of around $420 million from the previous quarter. It was also above the company's target of $4 billion, a milestone it had previously reached in its second quarter. McKenzie said the net debt increase reflected a weakened Canadian dollar, a temporary buildup in inventory of around 22,000 barrels per day, along with its share buyback program.
