November 1, 2024
Varcoe: 'A nation-building project' — As producers tout TMX, attention turns to LNG Canada's debut while gas output sets record
By Chris Varcoe
The Canadian oil and gas sector faces contrasting pressures: depressed natural gas markets and the positive impact of the Trans Mountain expansion (TMX). The TMX, which started this spring, is driving increased oil drilling, record production, and rising exports, while low gas prices are slowing gas well completions. Canadian Natural Resources reported record oil production of over one million barrels per day in Q3, with synthetic crude output reaching 529,000 barrels per day in August. The expanded pipeline is easing transportation limits, boosting Canadian oil's market reach, and narrowing the price gap with U.S. crude.
Despite recent stability in oil markets around $70 a barrel, Alberta's gas prices remain subdued, while production levels continue to rise. This ongoing output growth casts doubt on the likelihood of a swift recovery, according to Martin King, managing director of North American energy market analysis at RBN Energy.
Read the full article here: Varcoe: As oil producers tout TMX, attention turns to LNG Canada | Calgary Herald
