Tag: oil sands

  • Curtailment Season In Ontario Begins

    Photo by kadmy/iStock / Getty Images
    Photo by kadmy/iStock / Getty Images

    Large industrial gas users have an option to negotiate favourable rates in exchange for certain commitments such as the option to curtail. An interruptible gas delivery service contract allows gas flow to be interrupted at the option of the utility during periods of peak demand. If you are on an interruptible (non-firm) delivery contract in Ontario, there is always a chance you will get a call instructing you to shut off gas to your facility between December 1st and March 31st. Rate 145, Rate 170 on Enbridge and Rate M5A on Union Gas. Curtailment periods don’t usually happen often (last winter there were 2) however extreme weather conditions do increase the number of curtailment days. During the winter of 2013/14, there were 21 curtailment days. An alternative to turning gas off at your facility is to purchase gas (i.e. Curtailment Delivery Supply – CDS) from an energy supplier such as Go Energy. To be properly prepared make sure you are on all the appropriate notification lists and contact Go Energy to review your options.

     

    Natural Gas Demand Increasing In The Alberta Oil Sands Delivery Area

    Up to 25% of natural gas produced in Alberta goes into the oil sands extraction process. A dramatic increase in natural gas demand for the oil sands in Alberta has kept prices at Aeco, Alberta strong. The last week of October gas demand to the oil sands region were the strongest since 2011 and have stayed strong into November. This has also contributed to a 20% decrease in natural gas exports to the US.

     

  • Incredible fire destruction in Fort McMurray

    I hope everyone can assist the people of Fort McMurray any way they can to help them get through this tragic event.

    The fires in Ft. McMurray are likely to expand into a weekend risk. The facilities being shut down are due to precautionary measures and not due to direct fire hit but will still lead to a monthly average oil drop of about 150 kb/d for May on a best case scenario of the fires not having any impact on any of the production or logistic assets and workers being able to quickly return to work. Given that the fires are not yet out, the impact could be higher than the best case. (Petromatrix)

    The impact on Alberta natural gas could also become significant as Alberta and BC gas consumption gets turned back with many oil sands production getting temporarily shut down.