Lifting America’s 40-year ban on crude oil exports is significant, but not monumental – particularly not for Canadian producers
BY JESSE SNYDER AND TODD COYNE
December 17, 2015
Tucked away inside a broad piece of tax legislation unveiled by members of the U.S. Congress this week is a motion to lift the 40-year-old ban on U.S. crude oil exports. The motion has yet to be accepted by Senate Democrats, but at this point it appears to be a done deal.
On face value, the shift sounds monumental. But like any monument, its real value is mostly symbolic. Removing the ban would mark a reversal in legislation that dates back to the price-shock of the Arab oil embargo and subsequent worries over U.S. energy independence. But what would the lifting of the ban mean for exporters of Canadian heavy oil, and for the international oil market in the near term?
A link was sent to me today regarding how well oilfield rentals in Grande Prairie are doing. It seems as the rest of the province drowns in the provincial governments’ inability to show leadership during these uncertain times, our little city isn’t really paying much attention to what is happening we just keep humming along, answering calls, employing people and hoping like everyone else that things will turn around.
Below is the article written by David Yager, MNP, LLP. that gives us some insight into our good fortunes.
Where’s a Good Place to Ride Out the Drilling Slump? Try Grande Prairie – David Yager – MNP LLP
You really know business is tough when success is measured by suffering less than others. But so it goes as the North American oilpatch enters its second year of a precipitous downturn caused by OPEC deciding to no longer support global oil prices by restraining production at its November 27, 2014 meeting. Every oil town from the Gulf of Mexico to the Northwest Territories has been negatively impacted by the collapse in oil prices and the commensurate drop in spending and drilling. Tens of thousands have lost their jobs, house prices have fallen, consumer spending in these communities has plummeted and many companies on the front line- and those which support them – have shut down or gone broke.
To describe the situation as ugly would be flattering. Unless OPEC does something most figure it won’t do on December 4, what you see is what you get for the foreseeable future. Maybe worse…read more>>
Although we realize the need for refining our own product, this does not mean that we can get it out of the province to markets around the world. We still need a way for our land locked resource to get to tide water, whether it be east or west. Below is an article from the Huffington Post, Alberta section.
North West Upgrading’s Sturgeon Refinery Will Cost $8.5 Billion
CALGARY — The costs of building Alberta’s first new oil refinery in 30 years have stabilized and it’s on track to be up and running by 2017, says the chairman of the company developing the government-backed Sturgeon project.
To read more about this project click on the link below.
On Sunday, October 4th, I will be participating in the 2015 Canadian Breast Cancer Foundation CIBC Run for the Cure. You can make a difference too . Please donate to me and support my fundraising efforts. This is my third year participating in the run, (yes I run it) last years time was 5k in 35 min so I hope to beat that time!
Thank you for your support!, Sheri Hulan.
This year I am proudly supporting The Terry Fox Foundation in its ongoing work to fund innovative and progressive cancer research programs by taking part in the 35th Anniversary Terry Fox Run! I very much hope you will consider sponsoring me in support of my effort, confident in the knowledge that your kindness will impact the lives of so many people living with cancer. Donations can be made until the end of October. See our Facebook Page for photos from the event! Thank you, Sheri Hulan
Next up is the CIBC Run for the Cure in support of breast cancer research, hoping to beat my time of 5 km 35 minutes , we will see!
Please click on the images to donate to either of these great charities.