​Why Seven Generations became Canada’s largest condensate producer: This week’s best quotes

Seven Generations Energy operations in the Montney play. Image: Seven Generations Energy

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

Seven Generations Energy CEO Marty Proctor on why the company has established itself as Canada’s largest condensate producer:

“Condensate is one of the few Canadian production streams that does not trade at a significant discount to its global benchmarks. While we produce meaningful natural gas liquids and natural gas volumes, condensate generates more than 70 per cent of our revenue.

“Condensate drives our economic returns and generates a significant cash flow base that provides the business with a tremendous amount of optionality.”

Baytex Energy CEO Ed LaFehr discussing the company’s efforts to ramp up crude-by-rail transportation for its heavy oil production:

“We’ve been very actively moving up our volumes of crude-by-rail for two reasons. One is it really helps clear our market in a tight environment. Second is when the differential moves to around an $18 to $20 level, we see superior field netbacks by moving to rail.

“It’s not quite 50 per cent of our heavy, but we’d like to get it to the point where we can talk about sort of 50 per cent of our heavy on rail.”

Amberly Dooley, oilsands manager for the Canadian Association of Petroleum Producers (CAPP), commenting on the industry’s competitiveness compared to other jurisdictions:

“I think competitiveness for the oil and gas industry in Alberta, and in Canada in general, is still a challenge for the industry [but] we have seen some improvement.

“Certainly CAPP is supportive of the integrated decision approach that the Alberta Energy Regulator is advancing. However, we've yet to see the full benefit of that realized in terms of the competitiveness for the industry. It's still in the implementation phase, and as such, we haven't realized the benefit of that yet.”

Brookfield Infrastructure CEO Sam Pollock, discussing why the company is extremely bullish on the future of the Montney and LNG in Western Canada:

“I think the enthusiasm and excitement around the potential announcement of [Royal Dutch Shell plc’s] LNG facility going to FID sometime this summer or in the fall has built up quite a bit. We share that enthusiasm that that facility will get going. We think there’s a lot of support by the government out there as well as many of the local constituents.”

MEG Energy interim CEO Gary Doerr on the company’s decision to pursue the sale of its proprietary HI-Q bitumen partial upgrading technology:

“The challenge with HI-Q is that the implementation of partial upgrading would be a big capital bite, and we’ve just got so much opportunity to invest capital profitably at Christina Lake and beyond that at some of our other properties.

“As much as I’d love to see the technology work, because it would have a significant impact on diluent requirements, pipeline volumes and access issues, and maybe open up some new markets, it’s probably not for us to be funding with our balance sheet. We’d be more interested in a throughput arrangement in a facility than we would be investing our own capital in it.”

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