Latest news with #crudeOil
CTV News
3 days ago
- Business
- CTV News
Trans Mountain could take on more pipeline projects if private sector can't: CEO
Crude oil tankers SFL Sabine, front left, and Tarbet Spirit are seen docked at the Trans Mountain Westridge Marine Terminal, where crude oil from the expanded Trans Mountain Pipeline is loaded onto tankers, near a residential area in Burnaby, B.C., Monday, June 10, 2024. (THE CANADIAN PRESS/Darryl Dyck) The CEO of Crown-owned pipeline operator Trans Mountain Corp. says it could take on other market-expanding pipeline projects if necessary, but that it would be preferable for the private sector to take the lead. Trade tumult in recent months with the United States — Canada's biggest customer for its crude oil — has intensified calls for Canada to build infrastructure that would allow its resources to flow to other global buyers. When the expanded Trans Mountain pipeline began shipping Alberta crude to the B.C. Lower Mainland just over a year ago, oilsands producers were finally able to meaningfully access lucrative Asian markets. Trans Mountain CEO Mark Maki said in an interview Friday there's an appetite for more pipeline egress to the Pacific coast and elsewhere. 'The U.S. is a great customer. It will always be a great customer, but diversification of markets for the country is important,' he said. He said Trans Mountain's owner — the Government of Canada — would prefer the private sector lead the way. 'If that can't happen, and it's in the national interest, Trans Mountain is here,' Maki said. His remarks came after Trans Mountain reported its operational and financial results for the first three months of 2025. Since oil started flowing through the expansion in May of last year, 266 crude vessels have been loaded, and third-party information suggests the destinations have been split between the U.S. West Coast and Asia. The expanded pipeline shipped an average of about 757,000 barrels per day during the quarter — below its capacity of 890,000 barrels per day. Maki said if the pipeline were running full, western Canadian heavy crude would see a steeper price discount against the easier-to-refine light crude sold on the global market. That would eat into the margins of Alberta producers. 'You really don't want us 100 per cent full … What's important really is to keep a little bit of slack in the system,' he said. As of now, the supply of crude hasn't caught up with takeaway capacity. 'But when that happens, the crude differential blows out. And so having a little bit of wiggle room is important.' Trans Mountain said there are economical ways to boost the pipeline's capacity if needed, such as adding chemical agents to reduce friction, which would enable more crude to flow through the line. Other options could include adding pumping horsepower or pipe segments. Those projects could together add up to 300,000 barrels per day of capacity. Trans Mountain said quarterly net income was $148 million, down from $158 million a year earlier. Its earnings before interest, taxes, depreciation and amortization — a measure it says reflects the performance of its underlying business — were $568 million, compared to the $36 million it brought in a year earlier, before the pipeline expansion had started up. During the quarter, $311 million was paid to its parent Canada TMP Finance Ltd., which is itself owned by the Canada Development Investment Corp. That consisted of $148 million in interest payments and $163 million in cash dividends. The original Trans Mountain pipeline has been operating since the 1950s. In 2013, U.S. energy company Kinder Morgan filed a proposal to expand it at a cost of $5.4 billion, touching off a contentious regulatory review process marked by protests and legal challenges. Kinder Morgan suspended work in 2018 and shortly thereafter sold the pipeline to the federal government for $4.5 billion. By the time the expansion project was completed, its cost had ballooned to $34 billion. Maki said there's no hurry to bring Trans Mountain back into private hands. He said the expanded pipeline should get a little more operating history under its belt so a potential buyer can ascribe the proper value to it. A dispute over the tolls customers pay to use the line, currently before the Canada Energy Regulator, also needs to be sorted out, he said. There is also interest in potential Indigenous equity ownership in the line — when the time is right. Trans Mountain is in a 'transitional' year where it is starting to pay dividends and is continuing some of the cleanup work from the pipeline construction. Next year will be a 'much more normal' one, Maki said. 'And so really probably at that point and out would make sense to start thinking about that.' This report by The Canadian Press was first published May 30, 2025. Lauren Krugel, The Canadian Press
The Guardian
4 days ago
- Business
- The Guardian
US supreme court sides with Utah railway project challenged by environmentalists
The US supreme court bolstered on Thursday a Utah railway project intended to transport crude oil, ruling against environmental groups and a Colorado county that had challenged its federal approval. The 8-0 ruling overturned a lower court's decision that had halted the project and had faulted an environmental impact statement issued by a federal agency called the Surface Transportation Board in approving the railway as too limited in scope. A coalition of seven Utah counties and an infrastructure investment group are seeking to construct an 88-mile (142km) railway line in north-eastern Utah to connect the sparsely populated Uinta Basin region to an existing freight rail network that would be used primarily to transport waxy crude oil. The case tested the scope of environmental impact studies that federal agencies must conduct under a US law called the National Environmental Policy Act, enacted in 1970 to prevent environmental harms that might result from major projects. The law mandates that agencies examine the 'reasonably foreseeable' effects of a project. The supreme court heard arguments on 10 December in the case, which has been closely watched by companies and environmental groups for how the ruling might affect a wider range of infrastructure and energy projects. Environmental reviews that are too broad in scope can add years to the regulatory timeline, risking a project's viability and future infrastructure development, according to companies and business trade groups. The Surface Transportation Board, which has regulatory authority over new railroad lines, issued an environmental impact statement and approved the railway proposal in 2021. The Center for Biological Diversity and other environmental groups sued over approval, as did Colorado's Eagle county, which noted that the project would increase train traffic in its region and double traffic on an existing rail line along the Colorado River. The US court of appeals for the District of Columbia circuit ruled in favor of the challengers in 2023, concluding that the environmental review inadequately analyzed the effects of increased oil production in the basin as well as downstream, where the oil would be refined. Democratic former president Joe Biden's administration had backed the railway coalition in the case, as did the state of Utah. Fifteen other states supported the challengers. Colorado said its economy relies on outdoor recreation, and that the project raises the risk of leaks, spills or rail car accidents near the Colorado River's headwaters. Conservative justice Neil Gorsuch recused himself from the case after some Democratic lawmakers urged his withdrawal because businessman Philip Anschutz, his former legal client, has a financial interest in its outcome.
Reuters
4 days ago
- Business
- Reuters
US Supreme Court sides with Utah railway challenged by environmentalists
May 29 (Reuters) - The U.S. Supreme Court bolstered on Thursday a Utah railway project intended to transport crude oil, ruling against environmental groups and a Colorado county that had challenged its federal approval. The 8-0 ruling overturned a lower court's decision that had halted the project and had faulted an environmental impact statement issued by a federal agency called the Surface Transportation Board in approving the railway as too limited in scope. A coalition of seven Utah counties and an infrastructure investment group are seeking to construct an 88-mile (142-km) railway line in northeastern Utah to connect the sparsely populated Uinta Basin region to an existing freight rail network that would be used primarily to transport waxy crude oil. The case tested the scope of environmental impact studies that federal agencies must conduct under a U.S. law called the National Environmental Policy Act, enacted in 1970 to prevent environmental harms that might result from major projects. The law mandates that agencies examine the "reasonably foreseeable" effects of a project. The Supreme Court heard arguments on Dec. 10 in the case, which has been closely watched by companies and environmental groups for how the ruling might affect a wider range of infrastructure and energy projects. Environmental reviews that are too broad in scope can add years to the regulatory timeline, risking a project's viability and future infrastructure development, according to companies and business trade groups. The Surface Transportation Board, which has regulatory authority over new railroad lines, issued an environmental impact statement and approved the railway proposal in 2021. The Center for Biological Diversity and other environmental groups sued over approval, as did Colorado's Eagle County, which noted that the project would increase train traffic in its region and double traffic on an existing rail line along the Colorado River. The U.S. Court of Appeals for the District of Columbia Circuit ruled in favor of the challengers in 2023, concluding that the environmental review inadequately analyzed the effects of increased oil production in the basin as well as downstream, where the oil would be refined. Democratic former President Joe Biden's administration had backed the railway coalition in the case, as did the state of Utah. Fifteen other states supported the challengers. Colorado said its economy relies on outdoor recreation, and that the project raises the risk of leaks, spills or rail car accidents near the Colorado River's headwaters. Conservative Justice Neil Gorsuch recused himself from the case after some Democratic lawmakers urged his withdrawal because businessman Philip Anschutz, his former legal client, has a financial interest in its outcome.
Bloomberg
22-05-2025
- Business
- Bloomberg
Top Indian Oil Producer's Quarterly Earnings Miss Estimates
State-run Oil and Natural Gas Corp.'s quarterly profit missed estimates as crude oil prices slumped and production from aging fields remained subdued. The New Delhi-based explorer's net income declined 35% on year in the three months ended March 31 to 64.5 billion rupees ($753 million), according to a stock exchange filing. A Bloomberg survey of analysts had estimated an average profit of 85.03 billion rupees.
Zawya
17-02-2025
- Business
- Zawya
GCC countries' crude oil production in 2023 logged about 17 mbpd, ranking first worldwide in output, reserves, exports
MUSCAT: GCC countries ranked first in global energy indicators and first in crude oil production, crude oil reserves, crude oil exports and natural gas reserves. Additionally, the GCC countries ranked second worldwide in natural gas exports and third in marketed natural gas production, according to data issued by the Statistical Centre for the Cooperation Council for the Arab Countries of the Gulf (GCC-Stat). Data indicate that the GCC countries' crude oil production in 2023 logged about 17 million barrels per day (mbpd), which accounted for 23.2% of the total global crude oil production, despite a 6.8% decrease in crude oil production in 2023 compared to the production recorded in 2022. The GCC countries' crude oil reserves in 2023 reached about 511.9 billion barrels, which accounted for 32.6% of the total global crude oil reserves, recording an average annual growth rate of 0.3% during the period from 2014 to 2023. The GCC Countries' crude oil exports in 2023 logged about 12.4 mbpd, representing 28.2% of the total global crude oil exports, despite a decrease in exports in 2023 by 8.2% compared to the figures recorded in 2022. The GCC Countries' oil derivatives exports in 2023 reached about 1518.6 million barrels, which accounted for 13.4% of global oil derivatives exports, with an increase of 7.1% compared to the figures recorded in 2022. The GCC Countries ranked second globally in oil derivatives exports, while oil derivatives imports reached 212.3 million barrels, with an average annual growth rate of 0.1%. Gas oil/diesel production recorded the highest rate among petroleum derivatives in 2023, with a quantity of 660.4 million barrels, followed by gasoline with 336.2 million barrels, then kerosene and jet fuel with 319.4 million barrels. Fuel oil, naphtha and petroleum gases recorded production of 263.1, 221.6 and 103.3 million barrels, respectively. Gasoline consumption in the GCC countries in 2023 logged about 336.6 million barrels, while gas oil/diesel consumption reached 299.7 million barrels. The rest of the derivatives witnessed varying quantities between 34.8 and 268.3 million barrels. With regard to natural gas, the GCC countries' reserves in 2023 reached about 44.195 billion cubic meters, which represent 21.4% of the total global reserves of natural gas, with an increase in reserves of 0.2% compared to the figures recorded in 2022. The GCC countries' natural gas exports in 2023 logged about 180.9 billion cubic meters, which accounted for 13.1% of the total global natural gas exports, with an average annual growth rate in exports of 2.5% during the period from 2014 to 2023. The GCC countries' production of marketed natural gas in 2023 reached about 464.2 billion cubic meters, which represented 10.8% of the total global production of marketed natural gas, with an increase of 1.4% compared to the figures recorded in 2022. In renewable energy indicators, the capacity of renewable energy stations in the GCC countries reached about 10,742 megawatts in 2023, recording an increase of 74.7% compared to the figures logged in 2022. The capacity increased, especially in recent years, in light of the Council's implementation of policies related to the use of renewable energy instead of fossil energy. The energy produced by the stations in 2023 reached about 14,403 gigawatt per hour, with an increase of 72.4% compared to the figures recorded in 2022. The GCC countries' electricity production in 2023 reached about 794.9 thousand gigawatt per hour, with an average growth rate of about 4.7% during the period from 2019 to 2023. These figures logged an increase of 1.2% compared to the figures of 2022, while consumption reached 732.5 gigawatt per hour, with an increase of 1.3% compared to the figures logged in 2022.
