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Why do oil and gas companies hedge?

Hedging oil and gas production for months or even years into the future is a vital tool for companies to provide certainty to their cash flow statements, by potentially securing future revenues for a specific, pre-determined period of time. Indeed, for some companies an effective hedging strategy is ...

Mark Young


Posted 3 years agoOpinion > upstreamonshoreCanada +7

Statoil joins Shell and other foreign companies exiting Canadian projects

Norway's oil and gas powerhouse Statoil ASA has finalised its exit from the Canadian oilsands and is by no means alone in a list of high-profile internationally-based operators to agree a sale of Canadian upstream assets during the past 12 months. Statoil (Oslo:STL) is selling its interest in the ...

Mark Young


Posted 3 years agoOpinion > CanadaStatoilShell +7

Low-cost light oil production drives Viking M&A deals

Low-cost light oil production is the key factor driving dramatic and sustained volumes of M&A activity within Canada's high-profile Viking formation. More than Cdn$8 billion in asset and corporate deals involved Viking light oil assets in Eastern Alberta and Saskatchewan in 33 separate deals si ...

Mark Young


Posted 3 years agoOpinion > mergersacquisitionsCanada +7

Alberta operators face over $2 billion in environmental LLR liabilities

Service companies are on alert with more than $2 billion in LLR-related costs currently accruing against abandoned wells awaiting reclamation in Alberta, according to the latest CanOils data. Engaging service companies to reclaim these abandoned wells (i.e. removing the wells' final LLR-related lia ...

Mark Young


Posted 3 years agoOpinion > Environmente&pE&P Projects +7

Upstream oil and gas M&A in Canada reaches Cdn$1.2 billion in December 2016

The value of December's announced M&A deals in the Canadian E&P sector totalled just over Cdn$1.2 billion – a sum around $300 million down on the equivalent totals in November and October, but still above the 2016 average of around Cdn$1 billion. This is according to data available in CanOils lates ...

Mark Young


Posted 3 years agoOpinion > CanadamergersAcquisition +6

Why horizontal Cardium wells cost less to drill in 2017

The cost to drill, case and complete a horizontal well in Alberta's prolific Cardium formation dropped significantly this year compared to the prior winter drilling season. That assessment is based on new well-cost data researched for PSAC's Well Cost Study for Winter 2016 . Click here to access t ...

Mark Young


Posted 3 years agoOpinion > CanadacardiumDrilling +6

Who pays the highest drilling rig rates in Western Canada?

Drillers of horizontal wells in Northern British Columbia face, by some distance, the highest average day rates for rigs in Western Canada, according to new data. The Petroleum Services Association of Canada's (PSAC) new Well Cost Study for Winter 2016 reveals that rig day rates in Northern B.C. ...

Mark Young


Posted 3 years agoOpinion > Canadadrilling rigswell construction +6

Marcellus shale sees massive resurgence in M&A activity

There was nearly eight times more invested in asset and corporate acquisitions in the Marcellus shale in 2016 than 2015, according to new analysis in Evaluate Energy's global M&A review for 2016 . Marcellus assets changed hands for a total of US$7.25 billion in 2016 – a massive increase on US$920 ...

Mark Young


Posted 3 years agoOpinion > MarcellusShaleShale Gas +6

68% of Canadian oil & gas companies will spend more in 2017

Following more than a year of cost cutting and spending reductions, early 2017 guidance in the Canadian oil and gas sector suggests that we will see a rebound in activity over the next twelve months. A far more stable oil price, as well as the past 18-months of adapting to a lower-for-longer prici ...

Mark Young


Posted 3 years agoOpinion > Production GuidanceCAPEXCanada +9

Tillerson to face further Russia scrutiny this week

Note: Article originally written by Paul Harris, Glacier Media, and posted with permission. Former ExxonMobil CEO Rex Tillerson's track record in Russia will come under further scrutiny this week. Tillerson, who is Donald Trump's nominee for Secretary of State, will begin confirmation hearings w ...

Mark Young


Posted 3 years agoOpinion > tillersonExxonMobilRussia +7

Upstream M&A in Canada exceeds Cdn$1.5 billion in November 2016

The value of November's announced M&A deals in the Canadian E&P sector totalled just over Cdn$1.5 billion – a sum almost identical to the equivalent total recorded in October. The full CanOils review of November upstream deal activity can be downloaded here. This month, however, it was more than j ...

Mark Young


Posted 3 years agoOpinion > upstreamCanadamergers +7

Encana cuts debt by largest amount for E&P TSX companies in past year

Debt reduction has been a hot topic in past year in Canada, as companies adapted to a lower-for-longer price environment. Out of 70 domestic and international producers listed on the TSX, Q3 2016 data available in CanOils reveals that Encana Corp. (TSX:ECA) has cut debt by the largest monetary val ...

Mark Young


Posted 3 years agoOpinion > Canadae&ponshore +2

The 10 largest upstream impairments recorded in U.S. oil & gas in 2016

Impairments and write-downs in the U.S. oil and gas industry were brought right back into focus by ExxonMobil's admission in October 2016 that it might have to write-down the value of some of its E&P assets around the world. ExxonMobil, in what would be a significant change in accounting policy, ...

Mark Young


Posted 3 years agoOpinion > Evaluate EnergyUnited States2016 +2