Statistics Canada says income gap hit record high in first quarter

By The Canadian Press
July 16, 2025 

A Statistics Canada sign is pictured in Ottawa 

THE CANADIAN PRESS/Sean Kilpatrick

OTTAWA — The income gap between the country’s highest and lowest income households reached a record high in the first quarter of 2025, Statistics Canada said Wednesday.

The agency said the difference in the share of disposable income between households in the top 40 per cent of the income distribution and the bottom 40 per cent grew to 49 percentage points in the first three months of the year.

Statistics Canada said the measure has increased each year following the onset of the COVID-19 pandemic. Latest updates on investing here

For the first quarter of 2025, it said the increase came as the highest income households gained from investments, while the lowest income households saw wages decline.

Those in the bottom 20 per cent of the income distribution saw the weakest growth in disposable income in the first quarter at 3.2 per cent compared with a year ago as their average wages edged down 0.7 per cent.

The lowest income households also saw the largest drop in net investment income as their investment earnings fell 35.3 per cent, while net transfers received, including increased government support measures, rose 31.2 per cent.

The average disposable income for those in the top 20 per cent of the income distribution increased at the fastest pace of any income group in the first quarter of 2025 as they benefited from a 7.7 per cent increase compared with a year earlier.Trade War coverage on BNNBloomberg.ca

The highest income households saw a 4.7 per cent increase in average wages and a 7.4 per cent gain in investment income.

Statistics Canada said the wealth gap also increased as the top 20 per cent of the wealth distribution accounted for 64.7 per cent of Canada’s total net worth in the first quarter, averaging $3.3 million per household.

The bottom 40 per cent of the wealth distribution accounted for 3.3 per cent of net worth, averaging $85,700 per household.

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This report by The Canadian Press was first published July 16, 2025.

Central Asian Nation's Crypto Boom Sparks International Alarm

By RFE/RL staff - Jul 15, 2025

International concern is growing over a cryptocurrency exchange in Kyrgyzstan, Grinex, which reportedly facilitated billions in transactions, raising suspicions that it aids Russia in evading Western sanctions.

Kyrgyz officials have offered little transparency regarding the oversight and licensing of Grinex and its affiliated companies, including A7A5, a ruble-pegged stablecoin.

Financial analysts and civil society organizations warn that this lack of regulatory oversight could position Kyrgyzstan as a hub for illicit financial activities, jeopardizing its international reputation.


Silence from Kyrgyz officials is adding to international concerns about alleged transactions worth billions of dollars on a cryptocurrency exchange registered in the Central Asia country.

Grinex, the platform at the center of the controversy, reportedly facilitated $9 billion in transactions between January and April this year, primarily using a ruble-pegged stablecoin (a type of cryptocurrency) known as A7A5.

These revelations, first brought to light by The Financial Times in late June, raise concerns that Grinex could be a crucial player in Russian efforts to circumvent Western sanctions imposed after Moscow launched its ongoing full-scale invasion of Ukraine in 2022.

Grinex was founded weeks after U.S. sanctions dismantled Russia’s Garantex platform, which is only sole exchange handling A7A5, considered the first stablecoin -- a cryptocurrency with an exchange rate stabilized by its ties to conventional assets such as currencies, gold, or oil -- pegged to the Russian ruble.

The similarities in how the two platforms operate, coupled with the timing of its establishment, have raised suspicions that Grinex is the successor to Garantex and provides Moscow with a digital workaround on the biting international sanctions imposed on it.

Adding to the intrigue is the involvement of Ilan Shor, a Moldovan oligarch and fugitive convicted of masterminding a $1 billion banking fraud in his home country.

Shor, now reportedly living in Russia, is suspected of having ties to both A7A5 and Grinex through a network of companies stretching from Moscow to Bishkek.

But when pressed about oversight of Grinex or its affiliated companies, Kyrgyz regulatory agencies and government ministries offered little more than deferrals and vague assurances.

No Comment

The Financial Market Regulation and Supervision Service (FMRS), responsible for implementing Kyrgyzstan’s 2022 Law on Virtual Assets, confirmed to RFE/RL’s Kyrgyz Service that a company named Grinex is listed in its registry.

However, FMRS official Chynara Baktybekova said “the listing is in Russian and may not correspond to the international Grinex exchange currently under international scrutiny.”

“We will respond to media inquiries within the timeframe prescribed by the law. We are not ready to comment at this time,” Baktybekova added.

When asked about the licensing status of Old Vector, the company behind the A7A5 token, Baktybekova stated that it is registered but does not require a full license, only a permit, as it issues tokens rather than operating an exchange.

As for A7-Kyrgyzstan, the guarantor of the A7A5 token, Baktybekova advised RFE/RL to contact a different division within FMRS.

However, repeated attempts to reach that division went unanswered.

The Ministry of Finance and the National Bank of Kyrgyzstan both declined to comment, stating that oversight of crypto exchanges falls outside their jurisdiction.


The Ministry of Economy and Commerce did not respond to multiple written and phone inquiries.

A June investigation by the Center for Information Resilience, an NGO dedicated to exposing human rights violations and threats to democracy through open source investigations and research, that the A7 strategy is aimed at "moving money across borders" and is "likely to present a significant challenge to existing sanctions regimes."
'An Ideal Environment For Illicit Activities'

The pattern of bureaucratic silence has frustrated journalists, financial analysts, and anti-corruption activists seeking clarity on how such large-scale transactions could take place in Kyrgyzstan’s nascent crypto sector.

“This lack of transparency creates an ideal environment for illicit financial activities,” cautioned Aizada Abdyldaeva, a financial law expert at the American University of Central Asia in Bishkek.

“Kyrgyzstan is at risk of becoming a preferred jurisdiction for entities seeking to evade international controls.”

Temirlan Moldokulov, a Bishkek-based political analyst, echoed those concerns:

“If our regulators can’t say who’s moving billions through our system, how can we assure foreign partners we aren’t facilitating sanction evasion?”

The Grinex controversy follows weeks of speculation about Shor’s alleged involvement with Capital Bank, one of Kyrgyzstan’s commercial banks.

Responding to those claims, President Sadyr Japarov publicly denied any foreign influence at the bank.

“Capital Bank is under state control. Don’t believe such rumors,” Japarov said in a televised interview in June. “The bank’s profits go directly to the state budget.”

While the president’s remarks addressed Capital Bank specifically, they have done little to quell unease about broader vulnerabilities in Kyrgyzstan’s financial system.

A Sanctions Backdoor?

Kyrgyzstan is one of the few Central Asian countries to have enacted a legal framework for digital assets. The 2022 law introduced a licensing regime for exchanges and token issuers, a move hailed at the time as progressive. However, critics say the framework lacks teeth.

“The law looks good on paper, but enforcement is weak and registries are secretive,” said Nurlan Aitkulov, an economist in Bishkek.

Analysts caution that this regulatory void, combined with Kyrgyzstan’s proximity to Russia and its reliance on remittances from Kyrgyz workers in Russia, could entice malicious actors to exploit the country as a financial hub for circumventing sanctions.

Western diplomats in Central Asia have privately expressed concern about Kyrgyzstan’s potential role in undermining international sanctions.

A senior European official in Brussels, speaking on condition of anonymity, told RFE/RL that “jurisdictions like Kyrgyzstan will come under increasing scrutiny.”

The U.S. Treasury’s Office of Foreign Assets Control (OFAC) has stepped up targeting of crypto-based sanction evasion networks globally.

'A Matter Of National Security'

Kyrgyzstan’s financial system is no stranger to controversy. From the collapse of banks amid political upheavals to previous allegations of money laundering through the aviation fuel sector, the country has long struggled with corruption and weak institutions.

“The crypto boom has added a new layer of complexity to an already fragile system,” said Aizada Abdyldaeva, the financial law expert.

“Without stronger oversight, we may see a repeat of past scandals—only on a digital scale.”

Civil society organizations have called on the government to publish the whole registry of virtual asset service providers and clarify the legal status of Grinex and its affiliates.

“This is not just a matter for regulators—it’s a matter of national security,” said Aijan Akmatova, a researcher with Bishkek-based think tank Taza Koom.

As international investigators dig deeper into Grinex and its network, Kyrgyzstan’s official silence is fueling speculation both domestically and abroad.

“This is a litmus test of Kyrgyzstan’s commitment to transparent governance and international collaboration,” warned Moldokulov. “The longer the silence persists, the more severe the potential repercussions could be.”

The Grinex episode has put Kyrgyzstan’s fintech ambitions at risk. If the country is perceived as a hotspot for sanctions evasion, it could face international backlash, jeopardizing its aspirations to become a regional leader in digital finance.


The story of Grinex and A7A5 continues to unfold, with journalists and blockchain intelligence firms continuing to trace the money and the networks behind it.

For Bishkek, the crossroads are clear: tighten oversight and restore trust, or risk being cast as a new epicenter in the shadowy world of financial crime.

By RFE/RL

TRUMP INC. CRYPTO GRIFT

US House set to vote on landmark crypto bills this week


By AFP
July 15, 2025


Image: — © Digital Journal

US lawmakers are on the verge of passing landmark legislation that will give the much-maligned crypto world much-wanted legitimacy, riding on President Donald Trump’s recent embrace of the industry.

The US House of Representatives is set to vote on three pieces of legislation this week, including one on the use of stablecoins — cryptocurrencies pegged to safe assets like the dollar — that if passed would immediately go to Trump for his signature.

The raft of legislation comes after years of suspicion against the crypto industry amid the belief in the Biden administration that the sector, born out of the success of bitcoin, should be kept on a tight leash and away from mainstream investors.

But after crypto investors poured millions of dollars into his presidential campaign last year, Trump reversed his own doubts about the industry, even launching a Trump meme coin and other ventures as he prepared for his return to the White House.

According to federal financial disclosure forms released last month, Trump pocketed more than $57 million from the crypto venture, World Liberty Financial, that he launched with his sons last year.

Trump has, among other moves, appointed crypto advocate Paul Atkins to head the Securities and Exchange Commission (SEC).

He has also established a federal “Strategic Bitcoin Reserve” aimed at auditing the government’s bitcoin holdings, which were mainly accumulated by law enforcement from judicial seizures.

And thanks to his backing, Trump could soon be signing the stablecoin bill — dubbed the GENIUS Act — that the US Senate passed last month and that sets rules such as requiring issuers to have reserves of assets equal in value to that of their outstanding cryptocurrency.

– ‘Long time coming’ –

Stablecoins are considered the safest and least volatile of digital currencies because their value is tied to traditional currency or secure assets such as gold.

Another provision of the bill empowers banking regulators to oversee stablecoin issuers in the United States.

'


The US legislation comes after years of suspicion against the crypto industry amid the belief that the sector born out of the success of bitcoin should be kept on a tight leash – Copyright AFP Giuseppe CACACE

The legislation could extend the US dollar’s influence in the world of cryptocurrency, with dollar-backed stablecoins seen as financial havens from local currencies prone to big fluctuations.

The US House is also considering the CLARITY Act that would establish a clearer regulatory framework for digital assets — including cryptocurrencies and other blockchain-based assets. If passed the bill would require passage in the Senate.

The act would clarify and divide regulatory authority between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).

Gerald Gallagher, General Counsel at Sei Labs, a digital asset firm, said the bills could be a game changer for the industry.

“GENIUS and CLARITY provide security and certainty for investors that previously were not available, either intentionally or unintentionally,” he told AFP.

“This has been a long time coming.”

The Republican-led House is also considering a bill it calls the Anti-CBDC Surveillance State Act that aims to block the issuance of a central bank digital currency (CBDC) – a digital dollar issued by the US Federal Reserve.

Republicans argue that a CBDC could enable the federal government to monitor, track, and potentially control the financial transactions of private citizens, undermining privacy and civil liberties.

It also would require passage in the Senate before going to Trump for his signature.

Crypto week legislation hits snag in U.S. Congress, some stocks fall

By Reuters
July 15, 2025 

An advertisement for the cryptocurrency, Bitcoin, is displayed on a building in Hong Kong on  (AP Photo/Kin Cheung, File)

The fate of long-awaited cryptocurrency legislation in the U.S. Congress was cast into doubt Tuesday, as a procedural vote to consider the measures was shot down by lawmakers from both parties, and shares of some companies in the sector fell.

House Republicans had billed this week as “Crypto week,” and were keen to advance numerous pieces of legislation aimed at providing clarity to the digital asset industry and long-sought legitimacy to the sector.

But those efforts hit an early snag on Tuesday, when several conservative Republicans joined with Democrats in blocking a procedural vote to allow consideration of three crypto bills as part of a dispute over how the measures should be packaged and considered.Latest updates on crypto news here

Shortly after the vote, House Speaker Mike Johnson told reporters that he planned to continue discussing the matter with members and hoped to vote on it again shortly.

Shares of crypto-related stocks including Circle Internet and Coinbase Global dropped on the news but then pared losses. Circle Internet fell over 4 per cent while Coinbase was down 1.5 per cent.

The House was attempting to pass a series of crypto-related bills, most notably a bill that would establish a regulatory framework for stablecoins.

Stablecoins, a type of cryptocurrency designed to maintain a constant value, usually a 1:1 dollar peg, are commonly used by crypto traders to move funds between tokens. Their use has grown rapidly in recent years, and proponents say they could be used to send payments instantly.

That bill -- and another the House is considering that would define when a crypto token is a commodity -- would be a huge win for the crypto industry.

The House also was set to consider a bill that would prohibit the U.S. from issuing a central bank digital currency. Republicans say there is a risk this could give the government too much control over Americans’ personal finances.

That bill has not been considered in the Senate and the Federal Reserve has not indicated a desire to develop a central bank digital currency.

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Reporting by Chris Prentice and Caroline Valetkevitch; editing by Pete Schroeder and David Gregorio

Why crypto giant Tether bought a South American farming company

By Reuters
 July 16, 2025

Young cows stand in a barn at Mystic Valley Dairy in Sauk City, Wis

 (AP / Carrie Antlfinger)

NEW YORK — Crypto powerhouse Tether, the world’s largest digital assets company, is leveraging its recent acquisition of a South American agricultural firm to make a strategic play for the multi-trillion dollar a year global commodities trade.

The company aims to embed its stablecoin, a digital currency pegged to the U.S. dollar that trades in crypto exchanges, into the core of markets where raw materials are bought and sold, promising to slash cross-border payment costs and times from days to seconds.

New York-listed Adecoagro, a company that produces dairy in Argentina, rice in Uruguay and sugar and ethanol in Brazil, among other products, agreed in April to sell 70 per cent of its shares to Tether in a deal valued at around US$600 million.Latest updates on crypto news here

It is another sign that the quickly-expanding crypto industry is moving into brick-and-mortar businesses, and broadening investments in physical assets.

“The crypto industry is increasingly focused on bridging digital finance with tangible assets,” said Joe Sticco, chief executive of Cryptex Finance, a company that created indexes that mirror cryptocurrencies’ market caps.

He said that by adding income-generating assets like farmland or food processing plants, Tether could strengthen its balance sheet and provide a hedge against inflation.

Tether’s main business segment is USDT, a digital currency backed mostly by U.S. Treasuries. Launched in 2014, USDT has grown sharply in trading volumes amid rising interest in cryptocurrency and token prices.

It is a way to make payments outside of the traditional global financial system. The big difference between USDT and bitcoin or another cryptocurrency like ethereumis that USDT is designed to track the U.S. dollar, the currency dominating global trade.
Commodities trading

Tether has issued US$143 billion in USDT so far, and it said in its first quarter report that it has US$149 billion in reserves, including US$120 billion in U.S. Treasuries.

“Tether wants to boost the use of its stablecoin to make cross-border payments, something that I think will grow a lot in financial markets, particularly in commodities markets,” said Marcos Viriato, the chief executive of Parfin, a South American company providing technology for transactions with cryptocurrencies.

“If a company in Brazil sells commodities to someone in Bolivia, the payment through conventional channels could take more than three days. With USDT it would take seconds,” he said, adding that operation costs would also be much lower.

Parfin has a pilot project with Brazil’s third largest bank, Banco Bradesco, where Brazilian commodities exporters sell products to clients abroad who pay with stablecoins. Bradesco then uses Parfin’s infrastructure to convert those USDT to local currency, which is deposited in exporters’ accounts.Latest updates on commodities here

“Tether’s investment approach prioritizes companies that expand our distribution network and enhance the real-world utility of stablecoins, with Adecoagro as a prime example,” Tether said in response to a Reuters request for information on the deal.


The company said it is evaluating, alongside Adecoagro’s management and other industry experts, how stablecoins could enhance efficiency and liquidity in commodity trading.

Tether reported late last year that it had financed a physical crude deal between a major oil company and a commodities trader, which was settled using USDTs, the first time a deal on these terms was done.

Reuters reported earlier this year that Russia was using cryptocurrencies in its oil trade with China and India to skirt Western sanctions. Venezuela has also sought to use digital currencies to trade.

Sugar token

Another possible option for Tether as it enters the agriculture world is the so-called tokenization of commodities, said Gracy Chen, chief executive of crypto exchange Bitget.

Tether already has a gold token, which mirrors gold’s value and is backed by gold reserves. It could look now into a sugar or corn token, that could be used for hedging or as a collateral in pre-harvest financing, Chen said.

“In effect, they are turning farmland, sugar mills and renewable energy plants into programmable financial instruments,” she said.

Tether said that it sees “significant potential in exploring the tokenization of real-world assets, including agricultural commodities,” although it stressed that there were no immediate plans to launch a sugar or corn token.

Instead, for now, the crypto company will use its acquisition for a different application. Tether said it will tap renewable energy produced by Adecoagro in its operations in South America, such as the electricity coming from sugarcane mills, to power a bitcoin mining operation.

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Reporting by Marcelo Teixeira, editing by Deepa Babington

Canadians have already lost $103 million to crypto investment scams this year: Canadian Anti-Fraud Centre

By Pat Foran

 July 16, 2025 

Canadians lost $224,201,739 to cryptocurrency investment in 2024, and so far have lost $103,172,872 in 2025, according to the Canadian Anti-Fraud Centre.

 (Pexels / Jakub Zerdzicki)

Canadians lost $224,201,739 to cryptocurrency investment in 2024, and so far have lost $103,172,872 this year alone, according to the Canadian Anti-Fraud Centre.

Cryptocurrency fraud usually involves fake videos generated with artificial intelligence (AI), that feature prominent politicians or celebrities promoting fake websites.

Two Ontarians CTV News spoke with collectively lost $58,600 after falling victim to separate AI-generated videos advertising fraudulent cryptocurrency investments.

“We got stung big time and we don’t want it to happen to anyone else,” said Don Perkins of Stittsville, a community in Ottawa.

It was in January when Perkins and his wife, Guylaine Perkins, said they saw a video of then Finance Minister, Chrystia Freeland, appearing to talk about an investment opportunity that could make them rich.


According to the AI-manipulated video, Freeland spoke about the “opportunity” Canadians could invest in, making them rich.

A fake, AI-generated video appears to show former Finance Minister, Chrystia Freeland, talking about a cryptocurrency investment opportunity.

“We bought into it and got swindled by a pair of smooth talking individuals,” Perkins said.

The Perkins said they started out investing with just a few hundred dollars, but eventually handed over their life savings of $42,600.

It wasn’t until they tried to withdraw the funds that they realized they lost all their money.

“When we went to access the money, they wouldn’t give it to us and said we would have to give them $10,000,” said Perkins.

Brenda Dionne of Whitby also had a similar experience when she saw an AI-generated video of what seemed to be Prime Minister Mark Carney claiming Canadians could make money investing in cryptocurrency.

An AI-generated video appears to show Canadian Prime Minister Mark Carney and Italian Prime Minister Giorgia Meloni discussing investing in cryptocurrency.

Dionne told CTV News that after she handed over her banking information, the fraudsters cleaned out her bank account and took her life savings of $16,000.

“I could see her doing it and I said ‘I don’t want you taking money out of my account,’” said Dionne. “I could see her doing it. I could see her taking my money.”

According to the Canadian Anti-Fraud Centre (CAFC), in 2024, crypto investments represented over 70 per cent of overall reported losses to investment fraud.


Most of those frauds involved altered videos that used AI to make it appear as if someone was saying to invest in a platform which was actually completely fake.

“If you open up your search engine and you search up cryptocurrency investments, the first five or ten are more than likely to be fraudulent platforms,” said Jeff Horncastle with the CAFC.

The centre says that when watching videos online, it’s important to remain skeptical and do your own research.

The CAFC also urges Canadians to exercise caution when viewing videos that seem too good to be true, or showing public figures saying something out of character, like investing in different platforms. They said these deepfake videos often rely on sensational or provocative content to manipulate others.

The Perkins both have health problems and said they invested in hopes of boosting their retirement savings, but instead lost it all.

“I have a bag in my stomach and go to dialysis three times a week. My wife can hardly walk and needs a wheelchair most of the time,” said Perkins. “This was a portion of our life savings that we had set aside.”

CTV News reached out to Prime Minister Mark Carney’s office about the fake, AI-generated videos but did not get a response.


Pat Foran
CTV News Toronto Consumer Alert Videojournalist

 

Aramco-Backed MidOcean in Advanced Talks for Major Stake in Canada LNG Unit

By Charles Kennedy - Jul 16, 2025

MidOcean Energy, the LNG investment platform backed by Saudi Aramco, has emerged as the front-runner to acquire a significant minority stake in Petronas’s Canadian gas and LNG business, according to people familiar with the talks, cited by Bloomberg. The deal, now reportedly in late-stage negotiations, could value the assets between $6 and $7 billion, making it one of the largest LNG transactions of the year.

Petronas’s Canadian unit includes extensive upstream operations in British Columbia and a 25% stake in the LNG Canada terminal, a major West Coast export project now under construction and slated to begin operations in 2026. A completed transaction would give Aramco exposure to North America’s fast-growing LNG export corridor through MidOcean. 

MidOcean was launched by U.S.-based EIG Global Energy Partners and became central to Aramco’s LNG strategy following its 2023 equity infusion. Since then, MidOcean has snapped up stakes in liquefaction projects in Australia, Peru, and now aims to enter Canada, cementing its role as a global LNG consolidator.

Petronas, meanwhile, is seeking to monetize non-core assets to reallocate capital toward decarbonization and domestic priorities while maintaining strategic LNG positions. The Canadian divestment aligns with that strategy.

While sources told Bloomberg that other suitors could resurface, MidOcean is currently viewed as the preferred bidder. Final terms may be announced later this summer, pending regulatory review and corporate approvals.

Aramco’s potentially indirect foothold in Canada reflects rising Gulf interest in supply basins outside the Middle East, as demand from China, South Korea, and India fuels long-term LNG growth.

By Charles Kennedy for Oilprice.com

How Canada’s oil sands transformed into one of North America’s lowest-cost plays

By Reuters
Published: July 16, 2025 

An oil sands facility seen from a helicopter near Fort McMurray, Alta.

 (Jeff McIntosh / THE CANADIAN PRESS)

Giant shovels, driverless trucks and a dog-like robot have all helped Canada’s oil sands companies including Imperial Oil and Suncor become some of North America’s lowest-cost oil producers, driving down overheads even as the worst inflation in a generation pushed U.S. shale costs up.

As the global oil industry enters a downturn due to economic uncertainty related to U.S. tariffs policy and OPEC+ pumping more barrels, Canada’s oil sands industry finds itself in a position of strength.Stay on top of your portfolio with real-time data, historical charts and the latest news on oil

In the years following the oil price crash of 2014-15, international oil majors including BP, Chevron and Total sold their interests in Canadian oil sands. At the time, they classified the Canadian operations as among their more expensive, and therefore less profitable, projects worldwide. They directed their capital to cheaper oil production, and favoured U.S. shale for its quicker drilling time and returns.

Since then, new technology and cost-cutting efforts have driven meaningful improvement in the industry’s competitiveness that make oil sands among the cheapest producers, according to a dozen industry insiders and a Reuters analysis of the latest U.S. and Canadian company earnings.

While U.S. shale companies are responding to this year’s oil price downturn by dropping rigs, slashing capital spending and laying off workers, the oil sands’ position of strength means Canadian companies have made virtually no changes to their previously announced production or spending plans.

Some Canadian politicians are now calling for a new crude pipeline from Alberta to the Pacific coast, as part of a broader effort to strengthen the country’s economy in the face of U.S. tariff threats.

The lower crude prices this year have little impact on the Canadian oil sector, Cenovus CEO Jon McKenzie said in an interview earlier this year. “This is an industry that has become much more resilient through time,” he said.

In one example, two four-legged robots— each nicknamed Spot because of their dog-like appearance — prowl Imperial’s vast 45-year-old Cold Lake operation in Alberta, conducting routine equipment inspections and maintenance such as heat exchanger optimizations, and oil/water tank interface monitoring. The Spots free up human workers for other work and save Imperial $30 million (US$22 million) a year, the company said.

Exxon-owned Imperial and its competitor Suncor have also switched to autonomous mining vehicles, eliminating the need to hire drivers to transport oil sands ore. The switch has improved oil output productivity at Imperial’s Kearl oil sands mine by 20 per cent since 2023, the company said.

Suncor operates a 900-tonne truck at its Fort Hills operation north of Fort McMurray, Alberta, which the company says is the world’s largest hydraulic mining shovel. Suncor CEO Rich Kruger said the shovel’s larger bucket and more powerful digging force deliver faster ore loading and less spillage.

Oil sands producers have also made improvements in equipment reliability and performance. At Kearl, for example, Imperial has reduced expenses related to turnarounds — an industry term for the costly periods of required maintenance that often involve temporarily shutting down production — by $100 million annually since 2021. The company cut the time between turnarounds from 12 to 24 months in 2024, and aims to extend that interval to 48 months in future.

Suncor credits efforts including standardizing maintenance practices across mines and improving management of site water to get more production out of existing assets for contributing to the company’s US$7 per barrel reduction in its West Texas Intermediate (WTI) break-even price in 2024 to $42.90.

This long-term focus on cost-cutting means Canada’s five biggest oil sands companies can break even — and still maintain their dividends — at WTI prices between $43.10 and $40.85, according to a Bank of Montreal analysis for Reuters.

That means oil sands producers have lowered their overall costs by approximately $10 a barrel in about seven years. Oil sands had an average break-even price of $51.80/bbl between 2017 and 2019, according to BMO.

In contrast, a recent Dallas Federal Reserve survey of over 100 oil and gas companies in Texas, New Mexico and Louisiana found that shale oil producers need a WTI oil price of $65 per barrel on average to profitably drill. Back in 2017-2019, U.S. shale producers had a break-even price of between $50 and $52 per barrel.

High startup costs, but long lifespans

Part of the reason that the oil sands industry has become so cost competitive is the nature of the extraction process. Producing the thick, sticky oil that is found in the sands of Alberta is in some locations more akin to mining than oil drilling.

Where the oil is very close to the surface, companies operate massive mines, scraping up huge volumes of sand and clay and then filtering out the oil. When the oil is deeper, companies inject steam underground to loosen the deposits and then use a drilling process.

An oil sands mine has big initial start-up costs but once it is operational, it can run for decades with very low production decline rates. Canadian Natural Resources, for example, at the end of 2024 had proved and probable reserves amounting to 20.1 billion barrels of oil equivalent in its portfolio, giving its oil sands mining and upgrading assets a remaining reserve lifespan of 43 years. The company’s Horizon oil sands mine has been producing since 2009.

Shale oil wells, by contrast, have low start up costs. Oil output from the wells, however, begins to decline within months. Prices have begun to climb because after years of heavy drilling in the top shale fields, the most productive areas have been exhausted. Drillers are moving onto secondary areas, so they have to drill more wells to achieve the same output and that has driven up costs.

Canadian oil sands companies have also paid down debt in the past five years, allowing them to reallocate profits away from shoring up their balance sheets and towards rewarding shareholders with dividends and buybacks.

According to the Bank of Montreal, oil sands producers Canadian Natural Resources, Suncor, Cenovus, Imperial Oil and MEG Energy currently have combined net debt, excluding lease liabilities, of $33.9 billion after paying down a combined total of almost $22 billion in debt between 2021 and 2024.

As returns grow, Canadian oil sands producers are an increasingly attractive investment for those looking to make money from the energy industry, said Kevin Burkett, portfolio manager with Vancouver-based Burkett Asset Management.

“(Canada’s oil sands) are not geopolitically risky, and they have some very appealing characteristics around productivity and costs,” said Burkett, who has shares of Canadian Natural Resources and Cenovus in his portfolio.

(Reporting by Amanda Stephenson; Editing by Caroline Stauffer and Anna Driver)

 

UK Extends Renewable Energy Contracts to 20 Years in Latest CfD Overhaul

By Julianne Geiger - Jul 15, 2025

The UK government has confirmed it will extend the length of its renewable energy contracts—from 15 years to 20—under the Contracts for Difference (CfD) scheme. This change, confirmed July 15, kicks in with Allocation Round 7 (AR7), opening for bids in August 2025, and applies to solar, onshore wind, offshore wind, and floating offshore wind technologies.

The CfD scheme, the government’s flagship program for supporting low-carbon electricity, offers developers a guaranteed price for the power they generate. By stretching the contract period to 20 years, the UK hopes to lower developers’ cost of capital and—eventually—pass those savings on to consumers. Whether those savings materialize in practice, however, remains to be seen.

According to the Department for Energy Security and Net Zero, longer contracts will help balance the high upfront costs of renewable infrastructure with more predictable, longer-term returns. The government argues this will smooth out the cost curve of the energy transition and help maintain momentum toward its Clean Power 2030 goals, especially as electricity demand balloons in the coming decades.

The change follows industry lobbying and months of consultation, with a majority of developers arguing that 15-year contracts no longer reflected market realities—especially amid volatile power prices, rising interest rates, and growing exposure to negative pricing.

Critically, the government insists that the extended term will not change the indexation metric—payments will remain pegged to the Consumer Price Index (CPI).

Critics of the plan argue that stretching the CfD contracts to 20 years could just be a backdoor subsidy expansion that lock consumers into longer payment periods that might not actually deliver better value. Should wholesale electricity prices drop signfiicantly after year 15 (as many predict), consumers could end up overpaying during the final five years of the contract.

Alongside the contract extension, the AR7 overhaul includes other developer-friendly reforms: floating offshore wind projects will get special budget support, solar PV projects will enjoy a longer commissioning window, and offshore wind bidders no longer need full planning consent to participate—just a 12-month planning track record.

All told, AR7 represents a recalibration of risk, return, and red tape in favor of getting more steel—and solar—in the ground faster. Whether this results in a boom or just another bureaucratic shuffle will depend on how fiercely developers compete when the bids roll in.

By Julianne Geiger for Oilprice.com

 

Brookfield and Google Launch World’s Largest Hydropower Agreement

By Charles Kennedy - Jul 15, 2025

Google has struck a landmark deal to buy more than $3 billion worth of hydroelectric power from Brookfield Asset Management to supply its data centers, with the potential to scale up the agreement to 3,000 megawatts — making it the largest corporate hydropower deal ever signed.

Under the 20-year contract, Google will source 670 megawatts of electricity from Brookfield’s Holtwood and Safe Harbor plants in Pennsylvania, located roughly 75 miles southwest of Philadelphia. These hydro plants will support Google’s data centers and help advance its commitment to operate entirely on carbon-free energy, matching consumption with clean power every hour.

This deal is the first in a broader framework between the two companies, focused on securing hydroelectric power across two major U.S. grids — from the Upper Midwest to the Gulf Coast and mid-Atlantic. Hydropower, while renewable, also offers dispatchable generation, giving Google a stable alternative to back up variable sources like wind and solar.

The agreement is being announced as part of the Trump administration’s unveiling of $70 billion in AI and energy investments. While the White House promotes U.S. leadership in artificial intelligence, its policy moves — including tariffs and the removal of clean energy tax incentives — have created uncertainties for renewables investment.

The surge in AI computing has driven massive demand for electricity, with hyperscalers such as Google, Amazon, Microsoft, and Meta scrambling to secure power. This demand has sparked renewed interest in nuclear power and triggered a wave of natural gas and turbine development.

Brookfield said the long-term contracts with Google would help support relicensing efforts for its hydro facilities, and that further expansions or acquisitions could follow, depending on Google's future needs.

This isn’t Brookfield’s first major clean energy partnership. Last year, it signed a separate deal with Microsoft to deliver more than 10.5 gigawatts of new wind and solar capacity across the U.S. and Europe between 2026 and 2030.

 

Sheffield’s Fight for Exxon Board Seat Isn’t Over Yet

By Charles Kennedy - Jul 15, 2025

The U.S. Federal Trade Commission (FTC) has denied a petition from Scott Sheffield, founder and former CEO of Pioneer Natural Resources, seeking to overturn a 2024 order barring him from serving on ExxonMobil’s board following its $64.5 billion acquisition of Pioneer. The FTC rejected the petition on procedural grounds, stating Sheffield was not a party to the original order and thus lacked standing to formally challenge it.

Despite the denial, the FTC indicated it would still review Sheffield’s arguments under an internal rule that allows reconsideration of final decisions. “They have not ruled on the merits of my strong objections,” Sheffield told Hart Energy, “and in fact they have indicated their intention to consider my arguments for reopening and vacating the order.”

The 2024 FTC order, issued under then-Chair Lina Khan, required that Sheffield hold no formal or advisory role at ExxonMobil for five years due to concerns he could coordinate with OPEC to influence oil prices. Sheffield has denied these allegations and filed a separate lawsuit against Khan personally.

At the time, the FTC vote was 3-2 in favor of the restriction. The current FTC, composed entirely of Republican commissioners, voted unanimously to deny Sheffield’s petition but appears more open to reviewing the merits of the case.

The FTC has been soliciting public comments on whether the order should be reopened. After a social media post from Khan encouraged responses, over 100 comments were submitted—mostly opposing any change.

The FTC clarified that while its original complaint referenced Sheffield’s alleged interactions with OPEC, it did not formally charge him with violating antitrust laws.

Sheffield maintains the initial decision was an example of “gross and unjust government overreach.” The FTC has also been reviewing a similar order preventing Hess CEO John Hess from joining Chevron’s board.