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Alberta

Premier Notley easing off the brake on oil production limit

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From the Province of Alberta

Province eases oil production limits

As storage levels draw down and the value of Alberta’s oil increases, the province is increasing the limit on oil production.

Premier Rachel Notley’s decision to protect the value of Alberta’s oil has been instrumental in helping reduce the amount of oil in storage, which had been nearly twice the normal level and resulted in the resources owned by all Albertans being given away for pennies on the dollar.

In response to new storage data, Alberta is increasing production in February and March to 3.63 million barrels per day, which is a 75,000-barrel per day increase from the January limit of 3.56 million barrels per day.

“We’re not out of the woods yet, but this temporary measure is working. While it hasn’t been easy, companies big and small have stepped up to help us work through this short-term crisis while we work on longer-term solutions, like our investment in rail and our continued fight for pipelines. I want to thank Alberta producers for working with us to protect the jobs and livelihoods of thousands of Alberta families and businesses, and your cooperation has been key to easing these limits ahead of schedule.”

Premier Rachel Notley

Alberta’s goal has always been to match production levels to what can be shipped using existing pipeline and rail capacity, while encouraging a reduction in storage levels. The decision to temporarily limit oil production was applied fairly and equitably, and has been instrumental in saving jobs across the energy sector.

Since the production limit was announced in December 2018, storage levels in Alberta have dropped ahead of schedule, declining by five million barrels to a total of 30 million barrels in storage. Analysis based on independent data suggests storage levels have been decreasing roughly one million barrels per week since the start of 2019 and are on track to continue clearing the storage glut that led to unprecedented discounts for Alberta oil in late 2018.

“I will never stop fighting for Albertans and Canadians to get top dollar for the resources that belong to them. We will adjust these production levels as necessary going forward and we will not waver in our fight for a Made-in-Alberta strategy to build new pipelines, access new markets and add value that creates jobs by upgrading more of our oil and gas here at home.”

Premier Rachel Notley                                            

Background

Based on the Q1 2019 forecast of production, government announced on Dec. 2, 2018 a reduction in production of 325,000 barrels a day of raw crude oil and raw bitumen. That 325,000 bpd was established as the difference between pipeline and takeaway capacity of 3.56 million barrels a day and the Q1 2019 publicly stated industry-wide forecast production of 3.89 million barrels a day.

The first 10,000 barrels per day a company produces remains exempt from any production limits, meaning 28 of over 300 producers in Alberta are subject to the production limits.

Since the production limits were introduced, government has amended its formula for determining how to allocate space under the production limit. It was determined that starting in February government would use each company’s highest level of production during their best single month from November 2017 to October 2018 as its baseline production level. This was a change from the original formula where the baseline would be established on a company’s highest six-month average over the same time period.

This change was made after listening to concerns from industry and advice from the Alberta Energy Regulator to better account for companies that were in the process of ramping up production as part of long-term investments in the province.

After 15 years as a TV reporter with Global and CBC and as news director of RDTV in Red Deer, Duane set out on his own 2008 as a visual storyteller. During this period, he became fascinated with a burgeoning online world and how it could better serve local communities. This fascination led to Todayville, launched in 2016.

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Alberta

Danielle Smith slams Skate Canada for stopping events in Alberta over ban on men in women’s sports

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From LifeSiteNews

By Clare Marie Merkowsky

The Alberta premier has denounced Skate Canada as ‘disgraceful’ for refusing to host events in the province because of a ban on ‘transgender’ men in women’s sports.

Alberta Premier Danielle Smith has demanded an apology after Skate Canada refused to continue holding events in Alberta.

In a December 16 post on X, Smith denounced Skate Canada’s recent decision to stop holding competitions in Alberta due to a provincial law keeping gender-confused men from competing in women’s sports.

“Women and girls have the right to play competitive sports in a safe and fair environment against other biological females,” Smith declared. “This view is held by a vast majority of Albertans and Canadians. It is also common sense and common decency.”

“Skate Canada‘s refusal to hold events in Alberta because we choose to protect women and girls in sport is disgraceful,” she declared.

“We expect they will apologize and adjust their policies once they realize they are not only compromising the fairness and safety of their athletes, but are also offside with the international community, including the International Olympic Committee, which is moving in the same direction as Alberta,” Smith continued.

Earlier this week, Skate Canada announced their decision in a statement to CBC News, saying, “Following a careful assessment of Alberta’s Fairness and Safety in Sport Act, Skate Canada has determined that we are unable to host events in the province while maintaining our national standards for safe and inclusive sport.”

Under Alberta’s Fairness and Safety in Sport Act, passed last December, biological men who claim to be women are prevented from competing in women’s sports.

Notably, Skate Canada’s statement failed to address safety and fairness concerns for women who are forced to compete against stronger, and sometimes violent, male competitors who claim to be women.

While Skate Canada maintains that gender-confused men should compete against women, the International Olympic Committee is reportedly moving to ban gender-confused men from women’s Olympic sports.

The move comes after studies have repeatedly revealed what almost everyone already knew was true, namely that males have a considerable innate advantage over women in athletics.

Indeed, a recent study published in Sports Medicine found that a year of “transgender” hormone drugs results in “very modest changes” in the inherent strength advantages of men.

Additionally, male athletes competing in women’s sports are known to be violent, especially toward female athletes who oppose their dominance in women’s sports.

Last August, Albertan male powerlifter “Anne” Andres was suspended for six months after a slew of death threats and harassments against his female competitors.

In February, Andres ranted about why men should be able to compete in women’s competitions, calling for “the Ontario lifter” who opposes this, apparently referring to powerlifter April Hutchinson, to “die painfully.”

Interestingly, while Andres was suspended for six months for issuing death threats, Hutchinson was suspended for two years after publicly condemning him for stealing victories from women and then mocking his female competitors on social media. Her suspension was later reduced to a year.

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Alberta

Alberta’s huge oil sands reserves dwarf U.S. shale

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From the Canadian Energy Centre

By Will Gibson

Oil sands could maintain current production rates for more than 140 years

Investor interest in Canadian oil producers, primarily in the Alberta oil sands, has picked up, and not only because of expanded export capacity from the Trans Mountain pipeline.

Enverus Intelligence Research says the real draw — and a major factor behind oil sands equities outperforming U.S. peers by about 40 per cent since January 2024 — is the resource Trans Mountain helps unlock.

Alberta’s oil sands contain 167 billion barrels of reserves, nearly four times the volume in the United States.

Today’s oil sands operators hold more than twice the available high-quality resources compared to U.S. shale producers, Enverus reports.

“It’s a huge number — 167 billion barrels — when Alberta only produces about three million barrels a day right now,” said Mike Verney, executive vice-president at McDaniel & Associates, which earlier this year updated the province’s oil and gas reserves on behalf of the Alberta Energy Regulator.

Already fourth in the world, the assessment found Alberta’s oil reserves increased by seven billion barrels.

Verney said the rise in reserves despite record production is in part a result of improved processes and technology.

“Oil sands companies can produce for decades at the same economic threshold as they do today. That’s a great place to be,” said Michael Berger, a senior analyst with Enverus.

BMO Capital Markets estimates that Alberta’s oil sands reserves could maintain current production rates for more than 140 years.

The long-term picture looks different south of the border.

The U.S. Energy Information Administration projects that American production will peak before 2030 and enter a long period of decline.

Having a lasting stable source of supply is important as world oil demand is expected to remain strong for decades to come.

This is particularly true in Asia, the target market for oil exports off Canada’s West Coast.

The International Energy Agency (IEA) projects oil demand in the Asia-Pacific region will go from 35 million barrels per day in 2024 to 41 million barrels per day in 2050.

The growing appeal of Alberta oil in Asian markets shows up not only in expanded Trans Mountain shipments, but also in Canadian crude being “re-exported” from U.S. Gulf Coast terminals.

According to RBN Energy, Asian buyers – primarily in China – are now the main non-U.S. buyers from Trans Mountain, while India dominates  purchases of re-exports from the U.S. Gulf Coast. .

BMO said the oil sands offers advantages both in steady supply and lower overall environmental impacts.

“Not only is the resulting stability ideally suited to backfill anticipated declines in world oil supply, but the long-term physical footprint may also be meaningfully lower given large-scale concentrated emissions, high water recycling rates and low well declines,” BMO analysts said.

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