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Parkland Fuel sees $79 million loss in first quarter on higher revenues

The Calgary-based company says that equalled a loss of 53 cents per diluted share, compared with a profit of 52 cents per share or $77 million a year earlier.

Revenues for the three months ended March 31 increased 3.4% to $4.36 billion from $4.2 billion in the prior year.

Fuel and petroleum product volume increased 12% to six billion litres.

Analysts expected Parkland to lose one cent per share on $4.37 billion of revenues, according to financial markets data firm Refinitiv.

The company says it removed more than $300 million of capital expenditures from its plans this year.


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Oil and gas drilling forecast revised to 49 year low as producers cut spending

Unknown-1The Petroleum Services Association of Canada has revised its 2020 Canadian drilling forecast to an almost 50-year record low of 3,100 oil and gas wells, a level not seen since 2,900 wells were drilled in 1972.

PSAC interim CEO Elizabeth Aquin says more than $7 billion of capital investment in the energy sector has been cancelled to date this year thanks to demand destruction from measures to deal with the COVID-19 pandemic and a supply surplus due to an oil price war between Russia and Saudi Arabia.

She said blockades of the Coastal GasLink Pipeline and cancellation of the Frontier oilsands project have also hurt investor confidence in the Canadian oil and gas industry.

PSAC chairman Mark O’Byrne says the industry appreciates government assistance such as $1.7 billion in federal funding to clean up orphan and inactive wells in Alberta, Saskatchewan and British Columbia, but will need more help to ensure survival.

The new forecast represents a decrease of 1,400 wells, or 31%, from PSAC’s original forecast of 4,500 wells announced in October.

About 4,900 wells were drilled in 2019.

“The majority of the impact will be felt on the oil side as supply overwhelms demand and storage levels surge to capacity,” said Aquin.

“This has left producers little incentive to drill for more with the price of a barrel of oil now fetching less than a cup of coffee. We expect to see a 38% drop in activity for oil wells versus 2019.”


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Petroleum sector pledges support during COVID-19

Screen Shot 2020-05-05 at 11.40.37 AMImperial Oil is the latest major petroleum company to roll up its sleeves in the fight against COVID-19. Already, Shell is offering free sandwiches and beverages to essential workers during the pandemic. Now, Imperial is coming forward with initiatives to help support those on the front line and aid in the fight against the spread of the virus. 

The Calgary-based company reports that they will provide up to $2 million in free fuel vouchers to frontline nurses, paramedics and doctors as part of its Heroes Campaign launched in response to the COVID-19 pandemic. Through this promotion, Imperial is offering 80,000 digital vouchers, each worth $25, to healthcare workers currently providing critical care across Canada. Vouchers can be secured online on a first-come, first-served basis at www.healthcarehero.ca and are redeemable at more than 2,000 Esso and Mobil stations across Canada through the company’s free Speedpass+ mobile payment app.

Imperial is also donating 60 tonnes of isopropyl alcohol (IPA) to be used in disinfectant products. IPA is an ingredient used in medical, health and pharmaceutical applications, such as hand sanitizer, medical wipes and rubbing alcohol. This donation will assist the production of more than 600,000, 350 ml bottles of hand sanitizer.

“We recognize the need is great and while many of us are isolating in the physical sense, I am proud of how our employees and neighbours have come together to donate critical supplies and funding where it is needed the most,” says Imperial CEO Brad Corson.

In addition to helping to meet Canada’s demand for IPA, Imperial has also supported the country’s pandemic response efforts by donating hundreds of laptops to students and matching employee cash donations 2:1.

Imperial reports that their laptop initiative will support on-line learning with a donation of 500 laptops to help meet the demand for technology devices while classrooms remain closed. The program has Imperial working with the Electronic

Recycling Association’s Lending Laptops Program in support of the Calgary Board of Education’s EducationMatters campaign.

With community charities in greater need than ever, Imperial has teamed with its employees to help. Imperial increased its match dollars to $2 for every $1 given by an employee. This is for donations to community charities and not-for-profit organizations.   

“We owe so much gratitude to those on the front lines who are working long hours helping those in need,” says Imperial’s CEO. According to Corson, the company will continue to look for ways to support Canadians as we all manage through this challenging period.


Calgary to host 2023 World Petroleum Congress

Calgary is to host the World Petroleum Congress in 2023, beating out four other global cities in voting that took place in St. Petersburg, Russia.

Screen Shot 2019-06-25 at 11.25.31 AMThe World Petroleum Council selected Calgary to host its global oil and gas forum in a fourth ballot early Sunday, where the other remaining contender was Baku, Azerbaijan.

Held once every three years, the congress attracts industry and government leaders from around the world including government heads of state and ministers of energy.

Mayor Naheed Nenshi, who was in St. Petersburg for the vote, said in a video posted to social media that the selection is “a shot in the arm for the Canadian energy sector.”

Calgary hosted the World Petroleum Congress in 2000 and brought in extra police officers from British Columbia, Saskatchewan and Manitoba in expectation of massive demonstrations which never materialized.

A news release from the World Petroleum Congress Canada calls the event the “Olympics of oil and gas,” noting it will bring in an estimated 5,000 delegates to the city.

“People were excited to learn about Canadian energy. They understand that Calgary remains the epicentre – the global epicentre for the world oil and gas industry, and here’s the chance to showcase our innovation, our environmental stewardship and our sustainability,” Nenshi said in the video from St. Petersburg, standing beside Denis Painchaud, chair of WPC Canada.

“We’ll see the world in 2023,” Nensi added.

Nur-Sultan, Kazakhstan; Dubai, United Arab Emirates; Baku, Azerbaijan and Buenos Aires, Argentina also competed to host the event.

The final round of voting between Calgary and Baku was close at 21 to 20.

“Nothing like a little drama to make the victory all the sweeter,” Nenshi said on Twitter of the final vote.

WPC Canada said the congress is expected to include over 80 national delegations, 700 expert speakers, 500 CEOs, 800 media, and 400 exhibiting companies.