Thursday , December 3 2020

Alberta signed 6 partial upgrades for $ 5B projects, says Notty



Alberta's Prime Minister Rachel Notley says her government is close to finalizing investment deals on six projects to partially upgrade oil and gas, which will cost nearly $ 5 billion in new private sector investment and create hundreds of long-term jobs.

"For decades, the Alberta have been talking about making more of our oil by riding home more, we are taking action to make this reality," Nolly said shortly before repeating the Calgary message on Thursday at the Canadian Association of Oil Drilling Contractors (CAODC).

"By replenishing the energy modernization in Alberta we can create more jobs and open up more markets to finally get the highest dollar for our resources," said Netley a day after Federal Finance Minister Bill Morneau issued a fiscal update, measures to address the impact of the oil price differential on the national economy.

The projects are implemented according to the Energy Diversification Act, introduced in March 2018, which provided incentives to stimulate the $ 1 billion dollar to help raise billions more in private investment to build partial modernization facilities.

The government states that it is still reviewing the short list of proposed projects for their economic viability.

"We are going to sit with these companies very soon and expect big investment decisions soon," Notley said.

Partial improvement reduces the thickness of oils and bitumen, making it easier to pass through the pipelines without having to mix with a thinner.

It can increase the capacity of the pipeline by up to 30%, says the province.

Exemption from levy on carbon for drilling

Notty also declares – one of the biggest applause in the room – that divers will be exempted from the provincial carbon tax for apparent use of drilling fuel on site. She said she would be eligible for rebates, which would return when the carbon tax began in early 2017.

The Prime Minister's office said the government believed that pilot rebates would add between $ 775,000 and $ 1.5 million a year.

Canadian oilwell drilling association Oilwell publishes its drilling forecast for 2019 just before the Prime Minister's speech.

The association predicts that 6,962 wells will be drilled, an increase of only 51 this year, which is a relatively modest appreciation since the beginning of the year.

The CAODC predicts that the total fleet will drop by 58 in the following year to 522 active drilling of 580.

"Lack of activity is not difficult to understand," said CAODC President Mark Scholz. "The Canadian oil and gas industry is simply too dysfunctional to predict any quick recovery."

Nately is busy making announcements this week as part of the so-called government strategy made in Alberta to gain more value for the province's energy resources.

The price of the Western Canadian Select broke in September, partly due to a shortage of oil in Alberta.

Since oil and oil production has grown throughout the year, export pipelines have reached their full capacity. Worse things, a few refineries in the US that handle heavy oil from Alberta to give up maintenance.

The difference between Western Texas Intermediate and Western Canadian Select an average of about $ 45 US per barrel last month. An estimate reflects the price of the price difference in Alberta's energy sector at $ 100 million a day.

Newly said on Thursday that the government is continuing to force Ottawa to do more to ease the transport of more oil on the rail as the pipeline capacity increases.

"And let's say that if Ottawa does not come to the table, then we will do it ourselves … and if we have to buy trains, that's what we will do," she said.

"The Bottom Line: Ottawa has to join Alberta to help ease the pain that Alberta has not played, but it is actually the same pain that affects the welfare of the whole province and, frankly, a state."

But Morawa told reporters in Ottawa on Thursday that the liberal government is not going to introduce new measures to increase the supply of oil on rail.

However, a government-backed spokesman said that if there is industry and government consensus on a new approach, he will assess how to move forward.

New Provincial Investments

On Tuesday, Newly presented a plan to increase its investment in two petrochemical industry modernization programs by $ 1.1 billion for a total of $ 2.1 billion.

It also announced in its office a new "Energy Efficiency Bloc" to give priority to improving and improving more of Alberta's energy resources in the province, and said the announcement of funding is expected within a few days.

On Monday, the prime minister said he had appointed three special envoys to work with energy sector experts and executive directors to find solutions to closing the oil price gap.

MEPs are Robert Skinner of Calgary University School of Public Policy, Brian Top, former Nisley Staff Chief and Deputy Energy Minister Koleyn Wolf.


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