Michael Binnion "You broke it; you fix it"


Cenovus Energy Ltd. under its new leader, Alex Pourbaix, advanced an interesting idea that was not universally accepted. It should have been. No one would argue our energy industry is long on oil and gas supply these days, but some might say we are short on ideas about what to do about it.

To solve the problem of oil and gas discounts, currently costing Canada as much as $100 billion per year, Pourbaix argued for apportionment. His idea is the Alberta government should mandate a proportionate cutback in supply to match our existing takeaway capacity. Virtually overnight this would get Alberta the market price. You don’t need to pull out a calculator to figure out that three times the price, makes up for smaller volumes, and would mean more royalties for the province of Alberta — a lot more.

Major integrated oil companies immediately argued that we should let the private market deal with this issue. My small and big c conservative friends have generally felt the same way.

My first instinct is also to be wary of setting the precedent of government managing oil supply. After all, it’s not milk we are selling here.

But let’s be clear, the private market didn’t break down here. Starting years ago, private companies offered to build and finance multiple pipelines and LNG plants to deal with the $100-billion-a-year problem we face today.

The Conservatives barely kept up with required approvals and so for the first time in my career, we needed rail to transport crude in spite of the $15 per barrel discount. Recently, it has completely unravelled purely because of ideological policy in Ottawa that ignores the strategic interests of Canada. The same World Wildlife Fund-inspired ideas behind the fiscal mess in Ontario are now behind pipeline cancellations, tanker bans and Bill C-69, the “no more pipelines” law, in Ottawa.

On the principle if government breaks it, government fixes it, why would we not be willing to fix in Alberta what Ottawa broke.

In the private sector, the rule is if there is too much supply on a common carrier pipeline, then suppliers are apportioned. Why wouldn’t Alberta as the owner of the resource, do the same thing when there isn’t enough space for Alberta on the pipelines?

Unlike the NDP and UCP both musing about managing supply and cutting off British Columbia, Pourbaix’s idea would deliver the same amount of oil and gas. We wouldn’t be hurting our end customers who wouldn’t even pay a different price for gasoline. The difference would be no more record profits for middlemen like BP with refineries in the United States. Instead of the U.S. economy benefiting from windfall profits and taxes, Alberta would receive revenue and royalties based on the market price. If Albertans as the owner of the resource want their fair share, then apportionment is the way to get it, at least until market access is solved.

If you are still unconvinced about setting a precedent, then I make this final appeal. What was the point of voting in the NDP if they won’t interfere in the market to get Alberta’s fair share from Donald Trump?

Michael R. Binnion is CEO of Questerre Energy Corp. and former chairman of the Canadian Taxpayers Federation.
Redigert 21.01.2021 kl 03:25 Du må logge inn for å svare
04.12.2018 kl 12:00 3322

Ikke noe problem det. men uansett så har denne ledelsen villedet aksjonærene i selskapet. Binna har ikke et fnugg av tillit i markedet den bløffen har han tatt for mange ganger . Det eneste verktøyet han har nå igjen er å Twitre som en annen gal person i USA.
Redigert 21.01.2021 kl 03:25 Du må logge inn for å svare
04.12.2018 kl 12:01 3317

Det går så det suser nå gutter ha ha ha
1 uke-15,10% 1 mnd-22,13% 3 mnd-22,19% YTD-60,70% 1 år-54,81%
Redigert 21.01.2021 kl 03:25 Du må logge inn for å svare

@signum20 - du verkar jo veldig forbanna. Har du tatt tapet? Du treng ikkje skrike så voldsomt her inne på forumet, alle som les her inne er veldig klar over dei faktiske forhold. Dersom du har noko nytt å komme med, del det gjerne bra eller dårleg, men det har ikkje nokon for seg å sende så mange meldingar med likt innhold. Det er berre støy!
Redigert 21.01.2021 kl 03:25 Du må logge inn for å svare
04.12.2018 kl 15:41 3141

Pirato sine tall forholdet jeg meg ikke til. De kan ikke være annet enn positiv mtp å beholde emisjonsgullkalven sin.

Og SPBM var vel også tilrettelegger i siste runde så de er heller ikke helt upartisk
Redigert 21.01.2021 kl 03:25 Du må logge inn for å svare
Pick Up
04.12.2018 kl 16:19 3080

Pick Up

11.11.2018 kl 19:324975

SpareBank 1 Markets og Paretos er knyttet opp til Qec og kan neppe betraktes som upartisk fordi begge blant annet er blitt tildelt godt betalte emisjonsoppdrag. Den dagen deres loyalitet til Qec blir borte, risikerer de å miste lukrative oppdrag fra Qec.

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04.12.2018 kl 17:19 2975

PDVSA and VZ: twin black holes collapsing inward on each other

Skilled workers do not earn enough to pay for food.

Their homes are suffering extended-blackouts.

Their cars do not have gasoline.

Many skilled workers are leaving or have left the country for a life elsewhere.

Refineries do not have needed parts and are operating at about 20% of capacity.

PDVSA cannot get new lines of credit as it has burnt all its bridges with creditors. The only loan that VZ/PDVSA is attempting to pay is the one needed to save Citgo from imminent seizure by creditors. China and Russia are not being repaid fully in crude because production is falling fast.

Even loading ships with (declining amounts of) crude has become very problematic.

VZ/PVDSA have run out of other peoples’ money and there is nothing left to steal or hock. VZ/PDVSA's production decline is rapidly accelerating into a black hole.
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04.12.2018 kl 18:05 2884

Rachel Notley, Donald Trump and Vladimir Putin all die and go to Hell.

While there, they spy a red phone and ask what the phone is for. Satan tells them it is for calling back to Earth.

Putin calls Russia and talks for 5 minutes. When he’s finished Satan informs him that the cost is a million dollars, so Putin writes him a cheque.

Next Donald Trump calls America and talks for 30 minutes. When he’s finished Satan informs him that the cost is 6 million dollars, so Donald Trump also writes a cheque.

Finally Rachel Notley gets her turn and talks for 4 hours. When she's finished, Satan informs her that there will be no charge and she is free to call Alberta at no cost anytime she likes.

Putin goes ballistic and asks Satan why Rachel Notley gets to call Alberta for free and he and the Donald must pay?

Satan replied, "Since Rachel Notley became Premier of Alberta, the province went to Hell, so it's a local call."

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04.12.2018 kl 18:16 2860

Canadian Heavy Crude Surges After Alberta Imposes Oil Cuts

(Bloomberg) -- Canadian heavy crude strengthened the most since June after the Alberta government mandated production cuts across the province.

Western Canadian Select’s discount to U.S. benchmark West Texas Intermediate narrowed $6 to $23 a barrel as of 3:51 p.m. New York time, data compiled by Bloomberg show. The discount shank to as much as $19.75 a barrel earlier in the day, the tightest since July. On an outright basis, prices were up more than $8 a barrel.

Alberta announced late Sunday that oil producers will have to collectively cut output by 325,000 barrels a day, or 8.7 percent, starting in January to alleviate rising inventories and pipeline bottlenecks. The reduction would drop to 95,000 barrels a day by the end of next year.

A surge of production from oil sands projects such as Suncor Energy Inc.’s Fort Hills mine earlier this year ran into limited pipeline space, causing inventories to rise and prices to decline. WCS’s discount to futures fell to $50 a barrel in October amid refinery maintenance in the U.S. Midwest.

Already, Canadian oil producers including Canadian Natural Resources Ltd. and Cenovus Energy Inc. announced that they had curtailed output. Those cuts added up to about 150,000 barrels a day, according to Explorers and Producers Association of Canada.

The province is producing 190,000 barrels a day more than can be shipped out and inventories are “nearing capacity,” Alberta’s government said in a release Sunday. The cuts will reduce volatility and narrow the Canadian crude differential by $4 a barrel relative to what it would otherwise have been.

WCS swaps for calendar year 2019 traded at $19.50 a barrel discount to WTI earlier Monday, compared with $25.75 on Friday, according to market participants. Prices have since retreated, with bids at minus $21.45.

Other Canadian crudes also rose on the announcement. The discount for Edmonton Mixed Sweet to futures narrowed $8.25 to $14.75 a barrel and synthetic crude’s discount shrank $1.50 to $17 a barrel, data compiled by Bloomberg show.

With assistance from Joe Aboussleman.To contact the reporters on this story: Robert Tuttle in Calgary at rtuttle@bloomberg.net; Catherine Ngai in New York at cngai16@bloomberg.net; Sheela Tobben in New York at vtobben@bloomberg.net. To contact the editors responsible for this story: David Marino at dmarino4@bloomberg.net Mike Jeffers, Reg Gale.

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04.12.2018 kl 18:23 2846

Back from the dead: Notley's oil cut sends Canadian crude prices, energy stocks skyrocketing
Last week everyone was projecting it would take until Q3 of next year to get back to diffs of $20. That has been achieved in a single day. This could narrow further as Sturgeon refinery comes online in a few weeks and as CBR continues its steady ramp up.

On Monday, Notley’s decision sent Western Canada Select up 44 per cent to trade at US$31.65 as of 2:10 p.m. On Friday, Canadian oil closed at US$21.93.

Redigert 21.01.2021 kl 03:25 Du må logge inn for å svare
04.12.2018 kl 18:52 2781

Selvom der efterhånden er mange artikler der er positive i forhold til fracking - så kommer der ikke meget fra Quebec - det kan godt virke lidt bekymrende.
Politikerne tør ikke melde ren ud - hvorfor ikke bare komme ud af busken?
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04.12.2018 kl 19:01 2757

De siste dagers kursutvikling har jo heller gjort folk mistenksomme på om "noen" vet mer enn andre, og da i negativ retning. Man tenker "ingen røyk uten ild", selv om aksjen jo alt burde ha tatt stupet for ingen fracking i Quebec.

Men jeg blir sittende i relativ trygg forvissning om at alt selskapet har utenom Quebec, er mer enn nok til at kursen vil rette seg betydelig opp.
Redigert 21.01.2021 kl 03:25 Du må logge inn for å svare
04.12.2018 kl 19:27 2706

Jeg har heller ikke de store forventninger til Quebec - man hvorfor kan de ikke melde lidt mere klart ud i Quebec. Det kan de finde ud af andre stedet i Canada.
Redigert 21.01.2021 kl 03:25 Du må logge inn for å svare

Ned over 60% siden nyttår og dere hausere som sa den skulle bli årets store vinner...har blitt årets store taper.. Men jeg har heletiden sagt den skulle ned...kursmål 1,20
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04.12.2018 kl 20:13 2610

Helt enig, med eksludering fra indeksen samt et nei til fracking som sannsynligvis er rett rundt hjørnet så er denne under 2 kr på et øyeblikk..Det kommer nok snart en Jul emisjon eller nyttårs emisjon til dere haussere, men ta det rolig. Er dere meg å tegner så får dere en nisselue med binnions signatur som kompensasjon

Redigert 21.01.2021 kl 03:25 Du må logge inn for å svare