8,494 Active Recruiters     Over 2 Million Candidates Globally

  1. Keep me logged in
  2. forgot password

Checkout Jobs Basket (0)

You can checkout a maximum of 150 jobs.

Signup Better for Candidates

  • Create a free virtual CV and let recruiters find you
  • Automatically have your profile matched to suitable Oil & Gas positions
  • Link to your profile using it as a free online CV
  • Store all your employment documents to your profile for easy sending
  • Always receive feedback on positions applied for

Signup Better for Recruiters

  • Suitable candidates automatically matched to your position
  • View candidate profiles for free
  • No more waiting for candidates to respond to job advertisements
  • Only ever pay when you match a candidate to a position
  • No more cold calling and sorting through out dated CVs

Cold Blast Freezes Canadian Oil Sands Solid, Forcing Lower Prices

Published in Oil Industry News on Friday, 17 January 2020

Graphic for News Item: Cold Blast Freezes Canadian Oil Sands Solid, Forcing Lower Prices

An arctic blast sweeping across Western Canada is weighing on the price of heavy crude.

Temperatures of -30 degrees Celsius (-22 Fahrenheit) and lower have descended on Alberta and Saskatchewan -- cold enough to render the region’s viscous oil rock solid. To transport it, producers must blend in more of a lighter crude called condensate, thereby reducing the volume that can be shipped by pipeline and increasing transportation costs, according to Kevin Birn, IHS Markit’s director of North American crude oil markets.

At the same time, trains that are shipping crude out of the pipeline-bottlenecked region must move slower in the chillier weather. Local demand for the oil is also threatened. On Tuesday, operations at Imperial Oil Ltd.’s refinery near Edmonton were disrupted due to the cold weather, the company said.

Natural gas supplies to parts of the oil sands-producing region, where the fuel is used to make steam for loosening bitumen so it can be extracted, were also disrupted on the NOVA Gas Transmission system as “extreme cold weather that has resulted in reduced receipts, high Intra demand and unplanned outages,” according to a notice from TC Energy Corp.

“The cold weather across the province is resulting in the inability for some customers to produce gas onto the NGTL system, while the system is experiencing peak demand,” TC Energy said in an email. “As a result, some central and northeast Alberta industrial customers are affected by lower-than-usual gas pressures.”

Shortfalls of gas supplies have also affected some power generators in the province, said Tara de Weerd, spokeswoman for Alberta Electric System Operator, which manages and operates the Alberta power grid.

Oil sands benchmark Western Canadian Select’s discount to West Texas Intermediate futures was at $24.50 a barrel on Wednesday, the widest in more than a year. Edmonton Mixed Sweet crude’s discount is also at the weakest in more than a year as is light synthetic crude that’s produced from oil sands bitumen processed in an upgrader.

To be sure, oil is facing more headwinds than just the weather, Birn said. Inventories rose to a record in November after a pipeline shutdown and rail strike, according to Genscape. Stockpiles remain at “very high levels,” which means that even as pipeline takeaway and rail capacity increases, there are few “shock absorbers” to deal with sudden disruptions.

Source: www.worldoil.com

Please leave comments and feedback below


canadian Oil and Gas, Alaskan Oil and Gas, Husky Oil and Gas, Oil and Gas News

Oil and Gas News Archive

Latest Oil & Gas News

Featured Companies

  • View All JobsOMPA

    Offshore Marine People & Academy (OMPA) is a global provider of personnel and training to the renewables, oil & gas, telecommunications and marine industries.

    With over 15 years' industry experience, we work with candidates to match them to the right roles and equip them with the skills and knowledge needed to succeed. Our job is to exceed your expectations.

    Visit us online: offshorempa.com

  • View All JobsChronos Oil and Gas

    Chronos Oil and Gas is one of the fastest growing and best placed recruitment agencies in the sector.

    With over 300,000 candidates on our database and an international team of specialist recruiters we work with clients to staff major projects around the world.

    Register your CV at www.chronosoilandgas.com

  • View All JobsNatural Resources

    Natural Resources is a UK based recruitment company providing personnel of all disciplines and nationalities worldwide.

    We represent clients and candidates at all levels who operate globally within oil & gas, renewables, nuclear, power, mining, marine, drilling, construction and petrochemicals. Our client base includes energy and construction.

    Visit Natural Resources at natural-resources.com