Official (Alberta) Oil Discussion Thread

[DownhillGoat]

Originally Posted by Azure

but it will take a long, LONG time before we do that with all trucks, machinery, tractor trailers, etc.

Airplanes, boats, trains...

[Azure]

Yup. Keep going. Container ships all run on diesel as well? Cruise ships as well. I suppose they could go nuclear, but I have a hard time believing the US Military will give their nuclear specs to a private company so the Chinese can steal the specs.

I think solar and wind will continue growing, and the electric car will keep selling. I hope Tesla is insanely successful. But, like I said earlier, even if they are that successful they won't even be making a dent in terms of vehicles sold every year. As for solar power growing like crazy, it is at the expense of coal and not natural gas.

Its a pipe dream that oil is going away as much as people want to believe it is. Alberta would be wise to figure out a way to extract it in an even more green way. And fight a better PR battle. People seem to think since Keystone isn't being built that it single handily will reduce emissions and they've won the war on climate change. Forgetting of course that thousands of miles worth of pipeline is still being built.

[Tiger]

very good talk

but I'm failing to embed

https://www.youtube.com/watch?v=SMZ2UUtsPIc

[Fuzz]

Took a big drop last week, but we are suddenly back over 50.
https://www.dailyfx.com/crude-oil

[GGG]

Cushing is predicted to drop by 1.3 million barrels.

[Mr.Coffee]

So, the LMR rating thing needing to be over 2.0 is pretty brutal (depending on your perspective).

[Weitz]

Originally Posted by Mr.Coffee

So, the LMR rating thing needing to be over 2.0 is pretty brutal (depending on your perspective).

Well with the non-sensical ruling in the Redwater case something like this was coming down no doubt.

You only need a 2.0 LMR if you are purchasing assets.

Effective immediately, and pending the earlier of the outcome of the Redwater litigation or the implementation of appropriate regulatory measures, the AER has implemented the following changes to minimize risks to Albertans.

- The AER will consider and process all applications for licence eligibility under Directive 067: Applying for Approval to Hold EUB Licences as nonroutine and may exercise its discretion to refuse an application or impose terms and conditions on a licence eligibility approval if appropriate in the circumstances.

- For holders of existing but previously unused licence eligibility approvals, prior to approval of any application (including licence transfer applications), the AER may require evidence that there have been no material changes since approving the licence eligibility. This may include evidence that the holder continues to maintain adequate insurance and that the directors, officers, and/or shareholders are substantially the same as when licence eligibility was originally granted.

- As a condition of transferring existing AER licences, approvals, and permits, the AER will require all transferees to demonstrate that they have a liability management ratio (LMR) of 2.0 or higher immediately following the transfer.

https://www.aer.ca/rules-and-regulat...lletin-2016-16

[Frequitude]

Haven't been in here in a bit. Solid conversation going on. Wanted to build on the below.

Originally Posted by Locke

When it comes to cars:

- How do you plan on making tires?
- What will the body be constructed of?
- How would you paint them?
- What about the plastics in the interior?

Making them electric is a good start, but the process of building a car is still incredibly oil-intensive.

Originally Posted by PsYcNeT

Doesn't this kind of underscore the need to not overuse oil as a fuel source?

It will be bad news for Alberta when the internal combustion engine is mostly replaced (it will happen eventually), but the above is spot on. From a value perspective, burning oil is probably one of the dumbest things we can do with it. From mankind's perspective, it is a much more valuable materials and chemicals feedstock than an energy feedstock.

That's why my new diversification angle is a petrochemical industry here in Alberta. We've got the right brain power and the resource itself right in our back yard. And heck, I bet most people couldn't tell the difference between a refinery and a chemical plant. They really are a very similar set of pots and pans. We also have a decent logistical connection to the world via rail. Not sure if being landlocked puts us at a distinct disadvantage to the Sarnia region though.

[Oil Stain]

Originally Posted by Frequitude

That's why my new diversification angle is a petrochemical industry here in Alberta. We've got the right brain power and the resource itself right in our back yard. And heck, I bet most people couldn't tell the difference between a refinery and a chemical plant. They really are a very similar set of pots and pans. We also have a decent logistical connection to the world via rail. Not sure if being landlocked puts us at a distinct disadvantage to the Sarnia region though.

It already exists.




Dow and Shell both have large petrochemical plants in Fort Saskatchewan as well.

Alberta is actually at a pretty big advantage in the petrochemical business I've been told as they are so close to the feed stock.

I agree the industry should be expanded if possible. No point in sending raw materials to Asia to be manufactured there, when large scale Oil & Gas complexes create so many good jobs.

[Frequitude]

Originally Posted by Oil Stain

It already exists.




Dow and Shell both have large petrochemical plants in Fort Saskatchewan as well.

I clearly meant a greatly expanded and more diverse one. Want to know if there is a market for that or if we are logistically constrained being a landlocked province.

[FLAMESRULE]

Originally Posted by Weitz

Well with the non-sensical ruling in the Redwater case something like this was coming down no doubt.

You only need a 2.0 LMR if you are purchasing assets.



https://www.aer.ca/rules-and-regulat...lletin-2016-16

Agreed. The AER is appealing that Redwater case and I suspect there may be a different decision in that appeal. The 2.0 LMR though is going to be real tough to make any junior/small PE deals. That is a pretty serious hurdle.

[Frequitude]

So I decided to google petrochemical diversification and the first thing that came up was the NDP's recently announced Petrochemicals Diversification Program. Thanks NPD (no, really)!

http://www.alberta.ca/release.cfm?xI...31D033C5201F5A

The Petrochemicals Diversification Program, announced on February 1st, encourages companies to invest in the development of new Alberta petrochemical facilities through a $500 million royalty credit program. Credits will be earned once approved projects are completed and feedstock consumption begins.

Alberta’s new Petrochemicals Diversification Program received 16 applications locally and from across the globe, representing more than $20 billion in potential new investment interest in Alberta’s petrochemicals industry. These applications are now under consideration with a third-party monitor, with final decisions to be made within 60 days from today. The highly competitive application process will ensure good value for Albertans, while also supporting the Alberta Jobs Plan to diversify our energy industry and create new job opportunities for Albertans.

[Zarley]

Pettrochem was one of the only successful government-led economic diversification projects launched by the Lougheed PCs. Perhaps the NDP will look to this success during the upcoming round of activist government investing.

[Azure]

$500 million is not even close to enough. Hopefully they expand that. I agree that we are wasting oil by burning it for fuel. Best bet would be for Alberta to sink some serious money into developing new oil related products, and the whole world moving away from the burning it for fuel, towards using it it as something else.

Plastics is a huge market that is doing very well right now.

[rubecube]

Infrastructure for petrochemicals would be a much easier sell environmentally than pipelines too.

[nik-]

Thanks UK.

My subs suck now

[Peanut]

Originally Posted by rubecube

Infrastructure for petrochemicals would be a much easier sell environmentally than pipelines too.

Why?

[Reaper]

Originally Posted by Peanut

Why?

Because "Pipelines BAD!"

It's much better to recreate the Lac Megantic playset than it is to risk a leak in a pipeline.

[Handsome B. Wonderful]

Originally Posted by Zarley

Pettrochem was one of the only successful government-led economic diversification projects launched by the Lougheed PCs. Perhaps the NDP will look to this success during the upcoming round of activist government investing.

Nova Chemicals is a successful and stable company now?

[para transit fellow]

think there is any reality to this?

"Saudi Arabia Declares Cease-Fire in Oil War"

By Leonid Bershidsky on 6/23/2016
Originally posted on Bloomberg.com


The new Saudi oil minister, Khalid Al-Falih, says the oil glut is over. That means the kingdom's war against U.S. shale producers is coming to an end, too. Who won it is a tough question to answer; on balance, it's probably the Saudis, but they have paid a huge price, and the surviving U.S. frackers have also benefited.

In September 2014, Saudi Aramco, the kingdom's state oil company, simultaneously increased output and discounts to Asian customers, making it difficult for producers with higher costs to compete.......

To read the rest of this article visit our website: http://www.stormholdenergy.ca/oil-gas-focus/