​Is an Alberta oil production cut necessary? This week’s best quotes

Image: Cenovus Energy

Here are some of the best news quotes from last week’s coverage in the Daily Oil Bulletin:

Cenovus Energy CEO Alex Porubaix said he expects 2019 capital investment to be in line with 2018, after the Alberta government's mandated oil output cuts boosted Canadian crude prices:

"My company will have a capital program that looks pretty similar to the program we had last year…We'll spend the better part of C$1.5 billion, give or take, and that would not have been the case if the government hadn't take action."

CIBC World Markets executive director Jon Morrison commented on the Alberta government’s introduction of mandated oil production cuts in a bid to narrow the discount received for Canadian heavy oil:

“As we have highlighted over the past month, the market is an efficient machine and the industry was already on its way to addressing the differential challenge…

"As such, we were already forecasting the WCSB to be effectively clearing the market during Q1/19 due to the combination of these voluntary cuts and rising [crude-by-rail] loadings.”

Devon Canada spokeswoman Nadine Barber described the company’s view of its future following the cancellation of the 9,000-bbl/d proposed Walleye SAGD project, a joint venture with Imperial Oil and ExxonMobil:

“Given our current development plans, we made a decision to no longer pursue Walleye. However, we are considering other development options for the land at some point in the future.

“The cancellation of Walleye has no impact on any of our Jackfish complex development nor plans for Pike 1 and Pike 2. Pike 1 remains on hold pending improved market access and regulatory conditions and Pike 2 is in the final stages of internal review before submission to the regulator.”

Tristan Goodman, president of the Explorers and Producers Association of Canada, addressed some EPAC members reducing or suspending dividends as a result of record-low pricing:

“I think as prices recover and as the curtailment starts to have the effect desired — which is to raise prices — you will see people pivoting. Right now the industry is so fluid so it’s a really quick reaction. Fortunately, the smaller folks are able to do that extremely quickly — often within days.”

Iranian president Hassan Rouhani said the United States will not be able to stop Iran exporting oil following new sanctions aimed to curb the Islamic Republic's missile program and regional influence:

"America should know that we are selling our oil and will continue to sell our oil and they are not able to stop our oil exports. If one day they want to prevent the export of Iran's oil, then no oil will be exported from the Persian Gulf.”

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