Clearwater Seafoods rises on Premium, Mi’kmaq takeover bid
Marcy Nicholson, Bloomberg News
Nov 10, 2020
Premium Brands Holding Corp. and a coalition of Mi’kmaq First Nations agreed to buy Clearwater Seafoods Inc. for $537 million in a deal touted as the single largest investment in the seafood industry by an Indigenous group in Canada.
Shares of Bedford, Nova Scotia-based Clearwater surged 13 per cent to $8.12 at 9:55 a.m. trading in Toronto, on pace for a three-year high. Premium Brands, based in Richmond, British Columbia, fell 2.2 per cent to $96.19.
Premium Brands partnered with a group led by the Membertou First Nation to acquire Atlantic Canada’s wild seafood company for $8.25 a share, a 14 per cent premium to Monday’s price. The transaction is valued at about $1 billion including debt.
The buyers will each hold a 50 per cent stake in Clearwater, which will continue to operate as a distinct entity.
“Clearwater on its own is a world-class seafood company with a great management team, best-in-class products and a globally respected brand,” Premium Brands Chief Executive Officer George Paleologou said Monday in a statement. “In partnership with us and the Mi’kmaq First Nations communities, it will become an even stronger business.”
Historic Opportunity
The proposed takeover of Atlantic Canada’s largest fishing company follows longstanding disputes between commercial fishermen and indigenous communities over fishing rights in the maritime region, with the lobster harvest being the latest flashpoint.
“This represents a historic opportunity for the Mi’kmaq to strengthen our role in Canada’s commercial fisheries,” Membertou First Nation Chief Terry Paul said in the statement. “Mi’kmaq will not only become 50 per cent owners of Clearwater with our new partner, Premium Brands, but will proudly hold all of Clearwater’s Canadian fishing licenses within a fully Mi’kmaq-owned entity.”
The deal comes about eight months after Clearwater initiated a strategic review of ways to enhance shareholder value. The company’s board said in a statement that the proposal is in the best interests of Clearwater shareholders and recommended they approve the transaction.
”It represents great value for shareholders, leverages the expertise within the company while advancing reconciliation in Canada,” Colin MacDonald, Clearwater co-founder and chairman, said in a separate statement.
Share Sale
Premium Brands owns a range of specialty food manufacturing and distribution businesses with operations across Canada, the U.S. and Italy. The combined seafood operations of Premium Brands, Clearwater and the Indigenous communities are expected to generate more than $1.3 billion in annual sales, with the majority outside Canada, the company said.
As part of the transaction, Premium Brands will raise $200 million by selling shares to a group of Canadian investment banks, and will sell an additional $50 million in stock to Canada Pension Plan Investment Board, the company said.
The transaction, which requires approval from Clearwater shareholders, is expected to close in the first half of next year.
Cormark Securities advised Premium Brands on the transaction, while RBC Capital Markets and Antarctica Advisors LLC worked with Clearwater.
Sunday, November 15, 2020
Extra income support for hard-hit workers may not stick around
post-pandemic: Trudeau
Ottawa is not looking to put in new fiscal anchors as it continues to ramp up aid spending.
The Canadian Press
Nov 11, 2020
OTTAWA -- Prime Minister Justin Trudeau says the more generous benefits being provided to out-of-work Canadians during the pandemic shouldn't be seen as permanent changes to the social safety net.
Millions of people have received emergency benefits since March, when the first wave of COVID-19 struck Canada and led to widespread lockdowns and historic job losses.
A new round of $500-a-week benefits for the unemployed has since been put in place and extended to next summer.
Trudeau suggested the government is watching to see how things play out before deciding on its next move.
Speaking at a virtual event hosted by the Financial Times, Trudeau said just because aid programs are helping during the pandemic doesn't mean they'll be useful once the crisis passes.
He also said the extra benefits likely won't stick around.
"Let's not pretend that something that works right now … gives us stability," Trudeau said in the pre-recorded interview.
"That's not a measure that we can automatically continue in a post- pandemic world. I think there are really important reflections to have on how we provide income supports and how we make sure that everyone is given opportunities."
The Canada Emergency Response Benefit paid out $81.6 billion to about 8.9 million people during its run from March to October.
Since then, the three benefit programs that replaced it have paid out nearly $2.3 billion, with the majority going to the more than one million people who have used the Canada Recovery Benefit for those out of work. The number of recipients has steadily risen, and has now exceeded federal estimates for demand.
The three "recovery" benefits will be in place until next summer.
At the same time, a slowdown in the number of employment insurance claims suggests demand for those benefits may fall short of the 2.8 million officials previously estimated.
All that could change, depending on the path of the pandemic.
Trudeau said in the Financial Times interview that the uncertainty caused by COVID-19 is why the Liberals revamped the aid program over the summer so benefits would rise if the economy turned south, or drop in cost if circumstances improved.
He said the benefits, as well as an extension to the wage subsidy program, a new commercial rent relief program, and extra help for companies closed by local lockdowns are all automatic stabilizers to ease conditions through the second wave of COVID-19.
The extension of the wage subsidy program to next summer won't be official until the Senate approves the necessary legislation.
Finance Minister Chrystia Freeland is scheduled to appear at the Senate finance committee Thursday to testify on the bill, known as C-9.
The Senate has had some of the loudest voices for the Liberals to adopt another automatic stabilizer in place of myriad benefits: a basic income program.
Basic income is essentially a no-strings attached benefit governments provide to citizens that sets a financial floor for individuals and families.
Some proponents of the idea, which Trudeau has not been publicly keen on, point to the existing suite of pandemic benefits as proof the idea works -- even if experts have said the CERB and its replacements aren't exactly a basic income.
"What we're doing now shouldn't be conflated with things that we might or could do in the future," Trudeau said when asked about basic income.
"I think we have to get through this before we start designing a whole new universe of social supports."
The parliamentary budget officer recently revised its estimates for providing a basic income for six months to almost all Canadians, projecting a cost of between $30.5 billion and $71.4 billion, down from the $47.5 billion and $98.1 billion outlined in July.
The overall cost would grow annually until it hit between $84.2 billion and $197.2 billion in 2025, depending on how much of the benefit is clawed back from people whose other incomes increase.
Ottawa is not looking to put in new fiscal anchors as it continues to ramp up aid spending.
The Canadian Press
Nov 11, 2020
Bloomberg News
OTTAWA -- Prime Minister Justin Trudeau says the more generous benefits being provided to out-of-work Canadians during the pandemic shouldn't be seen as permanent changes to the social safety net.
Millions of people have received emergency benefits since March, when the first wave of COVID-19 struck Canada and led to widespread lockdowns and historic job losses.
A new round of $500-a-week benefits for the unemployed has since been put in place and extended to next summer.
Trudeau suggested the government is watching to see how things play out before deciding on its next move.
Speaking at a virtual event hosted by the Financial Times, Trudeau said just because aid programs are helping during the pandemic doesn't mean they'll be useful once the crisis passes.
He also said the extra benefits likely won't stick around.
"Let's not pretend that something that works right now … gives us stability," Trudeau said in the pre-recorded interview.
"That's not a measure that we can automatically continue in a post- pandemic world. I think there are really important reflections to have on how we provide income supports and how we make sure that everyone is given opportunities."
The Canada Emergency Response Benefit paid out $81.6 billion to about 8.9 million people during its run from March to October.
Since then, the three benefit programs that replaced it have paid out nearly $2.3 billion, with the majority going to the more than one million people who have used the Canada Recovery Benefit for those out of work. The number of recipients has steadily risen, and has now exceeded federal estimates for demand.
The three "recovery" benefits will be in place until next summer.
At the same time, a slowdown in the number of employment insurance claims suggests demand for those benefits may fall short of the 2.8 million officials previously estimated.
All that could change, depending on the path of the pandemic.
Trudeau said in the Financial Times interview that the uncertainty caused by COVID-19 is why the Liberals revamped the aid program over the summer so benefits would rise if the economy turned south, or drop in cost if circumstances improved.
He said the benefits, as well as an extension to the wage subsidy program, a new commercial rent relief program, and extra help for companies closed by local lockdowns are all automatic stabilizers to ease conditions through the second wave of COVID-19.
The extension of the wage subsidy program to next summer won't be official until the Senate approves the necessary legislation.
Finance Minister Chrystia Freeland is scheduled to appear at the Senate finance committee Thursday to testify on the bill, known as C-9.
The Senate has had some of the loudest voices for the Liberals to adopt another automatic stabilizer in place of myriad benefits: a basic income program.
Basic income is essentially a no-strings attached benefit governments provide to citizens that sets a financial floor for individuals and families.
Some proponents of the idea, which Trudeau has not been publicly keen on, point to the existing suite of pandemic benefits as proof the idea works -- even if experts have said the CERB and its replacements aren't exactly a basic income.
"What we're doing now shouldn't be conflated with things that we might or could do in the future," Trudeau said when asked about basic income.
"I think we have to get through this before we start designing a whole new universe of social supports."
The parliamentary budget officer recently revised its estimates for providing a basic income for six months to almost all Canadians, projecting a cost of between $30.5 billion and $71.4 billion, down from the $47.5 billion and $98.1 billion outlined in July.
The overall cost would grow annually until it hit between $84.2 billion and $197.2 billion in 2025, depending on how much of the benefit is clawed back from people whose other incomes increase.
Trudeau not keen to set fiscal targets amid record spending
BNN/ BLOOMBERGOTTAWA -- Prime Minister Justin Trudeau says the more generous benefits being provided to out-of-work Canadians during the pandemic shouldn't be seen as permanent changes to the social safety net.
Millions of people have received emergency benefits since March, when the first wave of COVID-19 struck Canada and led to widespread lockdowns and historic job losses.
A new round of $500-a-week benefits for the unemployed has since been put in place and extended to next summer.
Trudeau suggested the government is watching to see how things play out before deciding on its next move.
Speaking at a virtual event hosted by the Financial Times, Trudeau said just because aid programs are helping during the pandemic doesn't mean they'll be useful once the crisis passes.
He also said the extra benefits likely won't stick around.
"Let's not pretend that something that works right now … gives us stability," Trudeau said in the pre-recorded interview.
"That's not a measure that we can automatically continue in a post- pandemic world. I think there are really important reflections to have on how we provide income supports and how we make sure that everyone is given opportunities."
The Canada Emergency Response Benefit paid out $81.6 billion to about 8.9 million people during its run from March to October.
Since then, the three benefit programs that replaced it have paid out nearly $2.3 billion, with the majority going to the more than one million people who have used the Canada Recovery Benefit for those out of work. The number of recipients has steadily risen, and has now exceeded federal estimates for demand.
The three "recovery" benefits will be in place until next summer.
At the same time, a slowdown in the number of employment insurance claims suggests demand for those benefits may fall short of the 2.8 million officials previously estimated.
All that could change, depending on the path of the pandemic.
Trudeau said in the Financial Times interview that the uncertainty caused by COVID-19 is why the Liberals revamped the aid program over the summer so benefits would rise if the economy turned south, or drop in cost if circumstances improved.
He said the benefits, as well as an extension to the wage subsidy program, a new commercial rent relief program, and extra help for companies closed by local lockdowns are all automatic stabilizers to ease conditions through the second wave of COVID-19.
The extension of the wage subsidy program to next summer won't be official until the Senate approves the necessary legislation.
Finance Minister Chrystia Freeland is scheduled to appear at the Senate finance committee Thursday to testify on the bill, known as C-9.
The Senate has had some of the loudest voices for the Liberals to adopt another automatic stabilizer in place of myriad benefits: a basic income program.
Basic income is essentially a no-strings attached benefit governments provide to citizens that sets a financial floor for individuals and families.
Some proponents of the idea, which Trudeau has not been publicly keen on, point to the existing suite of pandemic benefits as proof the idea works -- even if experts have said the CERB and its replacements aren't exactly a basic income.
"What we're doing now shouldn't be conflated with things that we might or could do in the future," Trudeau said when asked about basic income.
"I think we have to get through this before we start designing a whole new universe of social supports."
The parliamentary budget officer recently revised its estimates for providing a basic income for six months to almost all Canadians, projecting a cost of between $30.5 billion and $71.4 billion, down from the $47.5 billion and $98.1 billion outlined in July.
The overall cost would grow annually until it hit between $84.2 billion and $197.2 billion in 2025, depending on how much of the benefit is clawed back from people whose other incomes increase.
Canada's virus spending is leaking to other nations: Economist
Shelly Hagan and Erik Hertzberg, Bloomberg
Prime Minister Justin Trudeau should direct more of his government’s COVID-19 plan to programs that encourage consumers to spend on services like restaurants, minimizing leakage of cash out of the economy, according to Canadian Imperial Bank of Commerce.
Canadian households are spending a disproportionate share of emergency support money on imported consumer goods, meaning government efforts aren’t as effective as they could be, Royce Mendes, an economist at CIBC, said in a report published Tuesday. More than 50 per cent of every dollar spent on clothes, for example, goes to pay suppliers abroad, compared with services such as haircuts, where most of the money goes toward paying staff and fixed costs like rent, the economist said.
“Purchases have actually been heavily skewed toward consumer goods at the expense of services during the pandemic, and that’s costing the economy and governments in Canada money,” Mendes said in the report, adding the clothing sector creates half as many jobs as the restaurant industry for every dollar in sales.
If nothing is done to fix the leakage, governments may have to spend more on fiscal support than other larger or less-open economies, Mendes said. Canada has already spent the most in the Group of 20 on its pandemic response relative to the size of its economy, yet employment and gross domestic product outcomes have been similar to those in countries such as the U.S., according to CIBC.
In July, the Canadian government estimated its budget deficit would soar to $343 billion this year, or 16 per cent of total output, mostly on support for workers and businesses affected by COVID-19. It has since announced an additional $40 billion in spending.
“Now, it’s true that Canada’s dollars have translated into far fewer Covid-related deaths as a proportion of the population than the next five biggest spenders on the list,” Mendes wrote. “But it’s also likely that part of the reason Canada has had to spend so much is because of the leakages we’ve discussed.”
Governments have some options to plug the leaks, Mendes says, such as ramping up the availability of rapid COVID-19 testing to make Canadians feel safe so they can support service-oriented firms.
Other possibilities include cutting the sales tax on services or directly subsidizing indoor dining, patios or take-out food, depending on the state of local health restrictions, he said.
Although these will be costly measures up front for the government, doing nothing could ultimately cost more. “If these programs work, we might have to spend less money on propping up businesses and individuals employed in that sector,” Mendes said by phone.
Shelly Hagan and Erik Hertzberg, Bloomberg
Prime Minister Justin Trudeau should direct more of his government’s COVID-19 plan to programs that encourage consumers to spend on services like restaurants, minimizing leakage of cash out of the economy, according to Canadian Imperial Bank of Commerce.
Canadian households are spending a disproportionate share of emergency support money on imported consumer goods, meaning government efforts aren’t as effective as they could be, Royce Mendes, an economist at CIBC, said in a report published Tuesday. More than 50 per cent of every dollar spent on clothes, for example, goes to pay suppliers abroad, compared with services such as haircuts, where most of the money goes toward paying staff and fixed costs like rent, the economist said.
“Purchases have actually been heavily skewed toward consumer goods at the expense of services during the pandemic, and that’s costing the economy and governments in Canada money,” Mendes said in the report, adding the clothing sector creates half as many jobs as the restaurant industry for every dollar in sales.
If nothing is done to fix the leakage, governments may have to spend more on fiscal support than other larger or less-open economies, Mendes said. Canada has already spent the most in the Group of 20 on its pandemic response relative to the size of its economy, yet employment and gross domestic product outcomes have been similar to those in countries such as the U.S., according to CIBC.
In July, the Canadian government estimated its budget deficit would soar to $343 billion this year, or 16 per cent of total output, mostly on support for workers and businesses affected by COVID-19. It has since announced an additional $40 billion in spending.
“Now, it’s true that Canada’s dollars have translated into far fewer Covid-related deaths as a proportion of the population than the next five biggest spenders on the list,” Mendes wrote. “But it’s also likely that part of the reason Canada has had to spend so much is because of the leakages we’ve discussed.”
Governments have some options to plug the leaks, Mendes says, such as ramping up the availability of rapid COVID-19 testing to make Canadians feel safe so they can support service-oriented firms.
Other possibilities include cutting the sales tax on services or directly subsidizing indoor dining, patios or take-out food, depending on the state of local health restrictions, he said.
Although these will be costly measures up front for the government, doing nothing could ultimately cost more. “If these programs work, we might have to spend less money on propping up businesses and individuals employed in that sector,” Mendes said by phone.
Shell lets customers offset carbon emissions for 2 cents per litre
Dan Healing, The Canadian Press
Nov 12, 2020
CALGARY - Shell Canada is letting carbon-conscious customers get their two cents in for the environment while filling up at one of its 1,400 stations across Canada.
The Canadian branch of Royal Dutch Shell is launching its Drive Carbon Neutral program on Thursday to allow customers to help it buy offset credits to reduce net carbon dioxide emissions from the production, refining and burning of fossil fuels.
“We see a lot of demand from customers to start helping. How can a customer who maybe can't afford to buy an electric car, but wants to do something to help the environment, get involved?” said Shell Canada president Michael Crothers in an interview.
“This is part of the transition while we continue to shift our energy mix as a company towards renewable power and renewable fuels.”
The program offered through Shell's EasyPay app will be free of charge until the end of December when those who choose to continue will be asked to contribute two cents per litre.
When customers opt-in via the app, Shell says it calculates the amount of carbon emissions that will be produced by the fuel they purchase and buys the equivalent in carbon credits to offset the emissions. It said it is sourcing carbon credits from the Darkwoods Forest Carbon Project, an initiative of the Nature Conservancy of Canada.
It's believed the program is the first of its kind in Canada, Crothers said, adding Shell's similar offerings in Europe have been well-received, with nearly 20 per cent of customers in Netherlands, for example, signing up.
IT'S A DUTCH COMPANY NATIONALISM/PATRIOTISM
Dan Healing, The Canadian Press
Nov 12, 2020
CALGARY - Shell Canada is letting carbon-conscious customers get their two cents in for the environment while filling up at one of its 1,400 stations across Canada.
The Canadian branch of Royal Dutch Shell is launching its Drive Carbon Neutral program on Thursday to allow customers to help it buy offset credits to reduce net carbon dioxide emissions from the production, refining and burning of fossil fuels.
“We see a lot of demand from customers to start helping. How can a customer who maybe can't afford to buy an electric car, but wants to do something to help the environment, get involved?” said Shell Canada president Michael Crothers in an interview.
“This is part of the transition while we continue to shift our energy mix as a company towards renewable power and renewable fuels.”
The program offered through Shell's EasyPay app will be free of charge until the end of December when those who choose to continue will be asked to contribute two cents per litre.
When customers opt-in via the app, Shell says it calculates the amount of carbon emissions that will be produced by the fuel they purchase and buys the equivalent in carbon credits to offset the emissions. It said it is sourcing carbon credits from the Darkwoods Forest Carbon Project, an initiative of the Nature Conservancy of Canada.
It's believed the program is the first of its kind in Canada, Crothers said, adding Shell's similar offerings in Europe have been well-received, with nearly 20 per cent of customers in Netherlands, for example, signing up.
IT'S A DUTCH COMPANY NATIONALISM/PATRIOTISMAS MUCH AS ENVIRONMENTALISM
The move was denounced as “pure greenwashing” by Keith Brooks, program director at Environmental Defence.
“Not only does it put the onus on the individual consumer instead of a massive polluter like Shell, it also offers them the chance to seek absolution for their climate sins rather than grappling with the fact that we need to get off of fossil fuels, gasoline included,” he said in an email on Thursday.
“And yet more insidious, the green veneer is obscuring Shell's ongoing efforts to stymie and scuttle climate policy through their membership in Canada's regressive climate lobby group, the Canadian Association of Petroleum Producers.”
Shell also announced Thursday it will provide funding for a B.C. Interior reforestation project in partnership with Central Chilcotin Rehabilitation, a Tsilhqot'in forestry company, to plant 840,000 native trees.
“Our communities were devastated by the wildfires in 2017, which were the result of poorly managed forests,” said Chief Joe Alphonse, tribal chairman for the Tsilhqot'in National Government, in a statement.
“The reforestation project is an opportunity for economic growth within our nation and will help to ensure that the forests are properly managed for the benefit of all here now, and for future generations.”
The cost of the two-year tree-planting project isn't being released. Crothers said the funding has been approved even though the current regulatory system doesn't allow Shell to obtain carbon offset credits from it, although the hope is that could change in the future.
Royal Dutch Shell plans to invest US$200 million in 2020 and 2021 in natural ecosystems as part of its global climate change program. The company has set a target of being a net zero emitter by 2050.
Shell's presence in Canada was reduced in 2017 when it sold most of its Alberta oilsands assets to Calgary-based Canadian Natural Resources Ltd., although it is the operator and retains a 10 per cent interest in the Scotford upgrader and Quest carbon capture and storage project near Edmonton, located next to its 100 per cent owned refinery and chemicals plants.
It also heads up the consortium building the $40-billion LNG Canada export project on the West Coast and retains interests in conventional oil and gas production.
The move was denounced as “pure greenwashing” by Keith Brooks, program director at Environmental Defence.
“Not only does it put the onus on the individual consumer instead of a massive polluter like Shell, it also offers them the chance to seek absolution for their climate sins rather than grappling with the fact that we need to get off of fossil fuels, gasoline included,” he said in an email on Thursday.
“And yet more insidious, the green veneer is obscuring Shell's ongoing efforts to stymie and scuttle climate policy through their membership in Canada's regressive climate lobby group, the Canadian Association of Petroleum Producers.”
Shell also announced Thursday it will provide funding for a B.C. Interior reforestation project in partnership with Central Chilcotin Rehabilitation, a Tsilhqot'in forestry company, to plant 840,000 native trees.
“Our communities were devastated by the wildfires in 2017, which were the result of poorly managed forests,” said Chief Joe Alphonse, tribal chairman for the Tsilhqot'in National Government, in a statement.
“The reforestation project is an opportunity for economic growth within our nation and will help to ensure that the forests are properly managed for the benefit of all here now, and for future generations.”
The cost of the two-year tree-planting project isn't being released. Crothers said the funding has been approved even though the current regulatory system doesn't allow Shell to obtain carbon offset credits from it, although the hope is that could change in the future.
Royal Dutch Shell plans to invest US$200 million in 2020 and 2021 in natural ecosystems as part of its global climate change program. The company has set a target of being a net zero emitter by 2050.
Shell's presence in Canada was reduced in 2017 when it sold most of its Alberta oilsands assets to Calgary-based Canadian Natural Resources Ltd., although it is the operator and retains a 10 per cent interest in the Scotford upgrader and Quest carbon capture and storage project near Edmonton, located next to its 100 per cent owned refinery and chemicals plants.
It also heads up the consortium building the $40-billion LNG Canada export project on the West Coast and retains interests in conventional oil and gas production.
Shell wants Biden to reverse methane emissions rollback
David Wethe, Bloomberg News
Nov 10, 2020
A Royal Dutch Shell Plc logo stands on an exterior wall at the company's lubricants blending plant in Torzhok, Russia, on Wednesday, Feb. 7, 2018. , Andrey Rudakov/Bloomberg
Royal Dutch Shell Plc will push for the reversal of President Donald Trump’s rollback of methane emissions rules and the introduction of carbon pricing when Joe Biden moves into the White House next year.
“Some of the regulatory rollbacks that we’ve seen under the current administration haven’t actually benefited our industry,” Shell U.S. President Gretchen Watkins said Tuesday on a webcast hosted by the Greater Houston Partnership.
The easing of direct regulation of methane emissions put the energy industry in a “backwards-facing position,” while the absence of carbon pricing makes it harder to incentivize new technologies like carbon capture, Watkins said.
“Whoever is in the White House, we will work constructively with them and are actually very much looking forward to building that relationship with the new administration that’s coming in in January,” she added.
The oil and gas industry, which has long been the target of environmental groups, faces increasing pressure from shareholders managing trillions of dollars to address greenhouse-gas emissions such as methane. Shell joined BP Plc in September in calling for Texas regulators to end the routine flaring of natural gas, a by-product of the oil boom in the shale patch.
David Wethe, Bloomberg News
Nov 10, 2020
A Royal Dutch Shell Plc logo stands on an exterior wall at the company's lubricants blending plant in Torzhok, Russia, on Wednesday, Feb. 7, 2018. , Andrey Rudakov/Bloomberg
Royal Dutch Shell Plc will push for the reversal of President Donald Trump’s rollback of methane emissions rules and the introduction of carbon pricing when Joe Biden moves into the White House next year.
“Some of the regulatory rollbacks that we’ve seen under the current administration haven’t actually benefited our industry,” Shell U.S. President Gretchen Watkins said Tuesday on a webcast hosted by the Greater Houston Partnership.
The easing of direct regulation of methane emissions put the energy industry in a “backwards-facing position,” while the absence of carbon pricing makes it harder to incentivize new technologies like carbon capture, Watkins said.
“Whoever is in the White House, we will work constructively with them and are actually very much looking forward to building that relationship with the new administration that’s coming in in January,” she added.
The oil and gas industry, which has long been the target of environmental groups, faces increasing pressure from shareholders managing trillions of dollars to address greenhouse-gas emissions such as methane. Shell joined BP Plc in September in calling for Texas regulators to end the routine flaring of natural gas, a by-product of the oil boom in the shale patch.
Methane emissions are higher than thought in Canadian oil patch
Robert Tuttle, Bloomberg News
Methane emissions from Canada’s oil and gas industry in recent years were almost twice as high as previously thought, a study showed.
Oil-sands mines and other fossil fuel developments in Alberta and Saskatchewan released 3 million metric tons of methane into the air between 2010 and 2017, according to a report published in Environmental Science and Technology that used hourly atmospheric measurements during winter months. That compares with 1.6 million estimated in Canada’s National Inventory Report.
Alberta, which holds the world’s third-largest crude reserves, has struggled with a plunge in investments even before this year’s oil market crash partly because of growing concerns over climate change. Methane is one of the most harmful greenhouse gases.
Recently, Alberta and the federal government reached an agreement on aligning regulations to reduce methane emissions from oil and gas facilities as part of an effort to reduce greenhouse-gas emissions by 30 per cent from 2005 levels by 2030.
The report titled “Eight-Year Estimates of Methane Emissions from Oil and Gas Operations in Western Canada Are Nearly Twice Those Reported in Inventories” was written by Elton Chan, Douglas E. J. Worthy, Douglas Chan, Misa Ishizawa, Michael D. Moran, Andy Delcloo, and Felix Vogel.
Robert Tuttle, Bloomberg News
Methane emissions from Canada’s oil and gas industry in recent years were almost twice as high as previously thought, a study showed.
Oil-sands mines and other fossil fuel developments in Alberta and Saskatchewan released 3 million metric tons of methane into the air between 2010 and 2017, according to a report published in Environmental Science and Technology that used hourly atmospheric measurements during winter months. That compares with 1.6 million estimated in Canada’s National Inventory Report.
Alberta, which holds the world’s third-largest crude reserves, has struggled with a plunge in investments even before this year’s oil market crash partly because of growing concerns over climate change. Methane is one of the most harmful greenhouse gases.
Recently, Alberta and the federal government reached an agreement on aligning regulations to reduce methane emissions from oil and gas facilities as part of an effort to reduce greenhouse-gas emissions by 30 per cent from 2005 levels by 2030.
The report titled “Eight-Year Estimates of Methane Emissions from Oil and Gas Operations in Western Canada Are Nearly Twice Those Reported in Inventories” was written by Elton Chan, Douglas E. J. Worthy, Douglas Chan, Misa Ishizawa, Michael D. Moran, Andy Delcloo, and Felix Vogel.
Trump to rush drilling leases in Arctic before Biden takes over
Jennifer A. Dlouhy, Bloomberg News
Nov 13, 2020
The Trump administration is advancing plans to auction drilling rights in the U.S. Arctic National Wildlife Refuge before the inauguration of President-elect Joe Biden, who has vowed to block oil exploration in the rugged Alaska wilderness.
The Interior Department is set to issue a formal “call for nominations” as soon as Monday, kick-starting a final effort to get input on what tracts to auction inside the refuge’s 1.56-million-acre coastal plain. The plans were described by two people familiar with the matter who asked not to be named detailing administration strategy.
Biden has pledged to permanently protect the refuge, saying drilling there would be a “big disaster.” But those efforts could be complicated if the Trump administration sells drilling rights first. Formally issued oil and gas leases on federal land are government contracts that can’t be easily yanked.
The U.S. Geological Survey has estimated the refuge’s coastal plain might hold between 4.3 billion and 11.8 billion barrels of technically recoverable crude. Yet it’s unclear how many oil companies would have the appetite to mount costly operations in the remote Arctic wilderness amid low crude prices, steep public opposition, and regulatory uncertainty. Major U.S. banks have sworn off financing Arctic drilling projects, and conservationists are also pressuring oil executives to rule out work in the region.
Environmentalists argue Arctic oil development imperils one of the country’s last truly wild places -- a swath of northeast Alaska populated by polar bears, caribou, and more than 200 species of birds.
The Trump administration is also fast-tracking a proposal to conduct 3-D seismic surveys inside the refuge before Jan. 20. The surveys can help pinpoint possible underground oil reserves, but environmentalists warn they are large industrial operations that threaten polar bears hidden in snow-covered dens.
Oil companies that buy leases in the refuge might never get the opportunity to use them while Biden is in the White House. Even if leases are sold and issued before Jan. 20, companies will need permits governing air pollution, animal harm, water usage and rights of way that the new administration could stall or deny.
Congress mandated the Interior Department hold two auctions of coastal plain oil leases before Dec. 22, 2024. But environmentalists, states and indigenous groups have already mounted legal challenges against the leasing plan. Any victory by the conservationists or settlement with the Biden administration requiring more environmental review could jeopardize leases.
Interior Department representatives didn’t immediately respond to an emailed request for comment. The “call for nominations” will help Interior’s Bureau of Land Management decide the contours of an auction. The agency still must issue a formal “notice of sale” before holding one.
Jennifer A. Dlouhy, Bloomberg News
Nov 13, 2020
The Trump administration is advancing plans to auction drilling rights in the U.S. Arctic National Wildlife Refuge before the inauguration of President-elect Joe Biden, who has vowed to block oil exploration in the rugged Alaska wilderness.
The Interior Department is set to issue a formal “call for nominations” as soon as Monday, kick-starting a final effort to get input on what tracts to auction inside the refuge’s 1.56-million-acre coastal plain. The plans were described by two people familiar with the matter who asked not to be named detailing administration strategy.
Biden has pledged to permanently protect the refuge, saying drilling there would be a “big disaster.” But those efforts could be complicated if the Trump administration sells drilling rights first. Formally issued oil and gas leases on federal land are government contracts that can’t be easily yanked.
The U.S. Geological Survey has estimated the refuge’s coastal plain might hold between 4.3 billion and 11.8 billion barrels of technically recoverable crude. Yet it’s unclear how many oil companies would have the appetite to mount costly operations in the remote Arctic wilderness amid low crude prices, steep public opposition, and regulatory uncertainty. Major U.S. banks have sworn off financing Arctic drilling projects, and conservationists are also pressuring oil executives to rule out work in the region.
Environmentalists argue Arctic oil development imperils one of the country’s last truly wild places -- a swath of northeast Alaska populated by polar bears, caribou, and more than 200 species of birds.
The Trump administration is also fast-tracking a proposal to conduct 3-D seismic surveys inside the refuge before Jan. 20. The surveys can help pinpoint possible underground oil reserves, but environmentalists warn they are large industrial operations that threaten polar bears hidden in snow-covered dens.
Oil companies that buy leases in the refuge might never get the opportunity to use them while Biden is in the White House. Even if leases are sold and issued before Jan. 20, companies will need permits governing air pollution, animal harm, water usage and rights of way that the new administration could stall or deny.
Congress mandated the Interior Department hold two auctions of coastal plain oil leases before Dec. 22, 2024. But environmentalists, states and indigenous groups have already mounted legal challenges against the leasing plan. Any victory by the conservationists or settlement with the Biden administration requiring more environmental review could jeopardize leases.
Interior Department representatives didn’t immediately respond to an emailed request for comment. The “call for nominations” will help Interior’s Bureau of Land Management decide the contours of an auction. The agency still must issue a formal “notice of sale” before holding one.
Inter Pipeline hopes to find petrochemical partner in the first half of 2021
Dan Healing, The Canadian Press
Nov 13, 2020
CALGARY -- Inter Pipeline says it hopes to conclude its search for a partner in its $4-billion petrochemical project now under construction near Edmonton in the first half of next year.
"We continue to advance the process to secure a partner for a material interest in the Heartland Petrochemical Complex," said CEO Christian Bayle on a conference call on Friday.
"We expect that work ... will take into next year to conclude the process; however, there's no assurance a transaction will be completed."
Analysts pointed out the quest for a partner had previously been expected to wrap up by early 2021, although Bayle said there's little significance to the change in wording.
Inter has been looking for a partner since late 2019 to share the cost of the project which has increased from the original estimate of about $3.5 billion.
The Calgary-based company concluded a deal to sell a majority of its European bulk liquid storage business to the CLH Group for $715 million earlier this week and Bayle said those proceeds, along with available credit lines, will help the company go ahead with funding the remaining $1.1 billion needed for the petrochemical project on its own if necessary.
Bayle praised the Alberta government's petrochemical incentive program announced at the end of October which offers grants worth 12 per cent of eligible capital costs once a project is up and running.
Inter received $200 million in royalty credits in connection with the Heartland project in 2016 under the previous NDP government's incentive program and Bayle said his understanding is that those credits can be converted to cash payments under the new program when the complex is in service in early 2022.
He wouldn't say if the program will encourage the company to build more projects.
Inter plans to eventually sell its remaining eight storage terminals in Sweden and Denmark, Bayle said, adding those assets aren't being marketed yet.
Inter reported third quarter net income of $38.7 million on revenue of $633 million, versus income of $79.9 million on revenue of $591 million in the same period last year.
Analysts polled by Refinitiv expected net income of $75.6 million on revenue of $555.5 million.
During the quarter, oil sands pipeline volumes fell to 1.06 million barrels per day from 1.18 million bpd in the year-earlier period.
Inter was forced to shut down part of its Polaris pipeline system for about two weeks after a leak was detected just east of the Fort McMurray airport in northern Alberta at the end of August.
Inter shares fell by as much as 85 cents or 6.4 per cent to $12.40 in Toronto on Friday.
Nov 13, 2020
CALGARY -- Inter Pipeline says it hopes to conclude its search for a partner in its $4-billion petrochemical project now under construction near Edmonton in the first half of next year.
"We continue to advance the process to secure a partner for a material interest in the Heartland Petrochemical Complex," said CEO Christian Bayle on a conference call on Friday.
"We expect that work ... will take into next year to conclude the process; however, there's no assurance a transaction will be completed."
Analysts pointed out the quest for a partner had previously been expected to wrap up by early 2021, although Bayle said there's little significance to the change in wording.
Inter has been looking for a partner since late 2019 to share the cost of the project which has increased from the original estimate of about $3.5 billion.
The Calgary-based company concluded a deal to sell a majority of its European bulk liquid storage business to the CLH Group for $715 million earlier this week and Bayle said those proceeds, along with available credit lines, will help the company go ahead with funding the remaining $1.1 billion needed for the petrochemical project on its own if necessary.
Bayle praised the Alberta government's petrochemical incentive program announced at the end of October which offers grants worth 12 per cent of eligible capital costs once a project is up and running.
Inter received $200 million in royalty credits in connection with the Heartland project in 2016 under the previous NDP government's incentive program and Bayle said his understanding is that those credits can be converted to cash payments under the new program when the complex is in service in early 2022.
He wouldn't say if the program will encourage the company to build more projects.
Inter plans to eventually sell its remaining eight storage terminals in Sweden and Denmark, Bayle said, adding those assets aren't being marketed yet.
Inter reported third quarter net income of $38.7 million on revenue of $633 million, versus income of $79.9 million on revenue of $591 million in the same period last year.
Analysts polled by Refinitiv expected net income of $75.6 million on revenue of $555.5 million.
During the quarter, oil sands pipeline volumes fell to 1.06 million barrels per day from 1.18 million bpd in the year-earlier period.
Inter was forced to shut down part of its Polaris pipeline system for about two weeks after a leak was detected just east of the Fort McMurray airport in northern Alberta at the end of August.
Inter shares fell by as much as 85 cents or 6.4 per cent to $12.40 in Toronto on Friday.
Market Call Christine Poole discusses Inter Pipeline
Christine Poole, CEO and managing director at GlobeInvest Capital Management discusses Inter Pipeline.
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Westcoast Energy fined $40,000 for blast near Prince George, B.C. two years ago
BNN Bloomberg Nov 13, 2020
Pipework stands on the European Gas Pipeline Link (EUGAL) Radeland 2 compressor station, which accommodates downstream gas flows from the Nord Stream 2 project, in Radeland, Germany, on Tuesday, Sept. 22, 2020. , Bloomberg
CALGARY - Westcoast Energy has been fined for failing to prevent a fiery pipeline blast northeast of Prince George, B.C., two years ago that led to natural gas shortages in the province through the winter.
The Enbridge subsidiary was issued the $40,000 fine after the Canada Energy Regulator determined Westcoast did not adequately implement a stress corrosion monitoring program that would have identified the problem section of the pipe.
In its final report released in March, the Transportation Safety Board said the 90-centimetre pipeline that supplies much of southern B.C. ruptured due to stress corrosion cracks on the outside surface of the pipe.
The safety board said the company didn't follow its own procedures in technical assessment and approvals before deciding to defer the inspection that may have identified the cracks.
No one was hurt in the Oct. 9, 2018, explosion but 125 people within a two-kilometre radius had to be evacuated as a precaution.
Since the blast, Enbridge says it has completed enhanced inspections on its natural gas pipeline system to prevent similar incidents.
BNN Bloomberg Nov 13, 2020
Pipework stands on the European Gas Pipeline Link (EUGAL) Radeland 2 compressor station, which accommodates downstream gas flows from the Nord Stream 2 project, in Radeland, Germany, on Tuesday, Sept. 22, 2020. , Bloomberg
CALGARY - Westcoast Energy has been fined for failing to prevent a fiery pipeline blast northeast of Prince George, B.C., two years ago that led to natural gas shortages in the province through the winter.
The Enbridge subsidiary was issued the $40,000 fine after the Canada Energy Regulator determined Westcoast did not adequately implement a stress corrosion monitoring program that would have identified the problem section of the pipe.
In its final report released in March, the Transportation Safety Board said the 90-centimetre pipeline that supplies much of southern B.C. ruptured due to stress corrosion cracks on the outside surface of the pipe.
The safety board said the company didn't follow its own procedures in technical assessment and approvals before deciding to defer the inspection that may have identified the cracks.
No one was hurt in the Oct. 9, 2018, explosion but 125 people within a two-kilometre radius had to be evacuated as a precaution.
Since the blast, Enbridge says it has completed enhanced inspections on its natural gas pipeline system to prevent similar incidents.
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