Monday , October 18 2021

Imperial Oil blames Albert's foreclosure program because it eliminates raw shipments



[ad_1]

Imperial Oil Ltd. Reduces crude oil shipments from 168,000 barrels per day in December to zero, and its CEO has been guilty of the Albert Government's oil-limiting order.

The collapse of prices in Canadian western crude oil prices, as reductions were announced at the beginning of December, has damaged the economic situation of rail transport in the United States.

"The untreated railways should help reduce this situation in the province," he said, referring to the government's goal of supporting local prices by reducing production to free up pipeline space and reduce overcrowding.

"But now, with dramatic, dramatic manipulation and influence on differentials, there is now idle power. It is a sad state, a very tangible example of what we consider to be a bad, poorly informed, negative consequence of this restriction order."

Price difference between Western Canadian Choose bitumen blend oil and New York's benchmark West Texas Intermediate rose to $ 52 a barrel in October, but declined to separate figures in December and January.

According to the oil broker, the net energy exchange in the middle of Friday increased from $ 9 to $ 11 per barrel.

To support higher rail costs for pipelines, differentials should be higher than $ 15- $ 20 per barrel, Kruger said, adding that the company may need "months" for the company to pick up shipments if it changes course.

This week, Alberta Premier Rachel Notley said that the province would reduce the 325,000 bpd production cut, which came into force on January 1, by 75,000 bpd, pointing to storage levels that have fallen faster than expected.

But the reason for lower storage is due to the increase in crude oil, Kruger said in an invitation, adding Imperial to about half of all such shipments, and its decision to keep its rail terminal near Edmonton will affect whether the level of storage will continue to fall.

Canadian natural resources

Imperial has objected to restrictions right from the start, but one of its supporters, Canada's Natural Resources Ltd, reported that it criticized this program this week.

A letter to suppliers said its February cut-off rate of 100,000 bpd would force it to close the ECHO pipeline, which provides a heavy raw material for its blending facility in the hard city of Alta, which could lead to job cuts in north-eastern Alberta, according to the media. reports approved by the company.

However, on Friday, Canadian Natural said lower production limits for February and March would allow it to maintain production levels to work safely in the pipeline – without understanding what the new level of restriction would be.

"Canadian science continues to support the Alberta government's decision to limit production as a strong measure to protect Canadian resources and protect jobs, provided that restrictions are implemented in a fair, transparent and reasonable manner," the statement said.

The first 10,000 bpd produced by the company are exempt from cuts, which means that they affect only 28 of the more than 300 Alberta manufacturers.

The Albert government defends the restrictions

The province has defended its foreclosure program as a temporary policy because it fights for long-term solutions to get better prices for Albert oil.

"We expect the difference to take place at a more sustainable level, and we continue to move forward with long-term solutions, such as our investment in railways and our ongoing struggle for pipelines," said Mike McKinnon, spokeswoman for Energy Minister McCuaig-Boyda. email.

Alberta continues to negotiate with potential suppliers who are planning to buy 80 locomotives and 7,000 rail tankers to help move oil to markets by the end of 2019.

Imperial reported net revenue of $ 853 million in the fourth quarter of 2018 compared to $ 137 million loss in the same quarter last year due to revenue and other income of $ 7.89 billion, less than $ 8.08 billion dollars.

Imperial said its downstream operations lost $ 310 million in the fourth quarter, compared to $ 481 million in the same period.

In the second quarter, the company earned USD 1.14 billion, which is USD 290 million in the fourth quarter of 2017, driven by stronger profit margins, as no turnover was made during the quarter.

[ad_2]
Source link