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“It’s Canada’s Time to Shine” – CNRL’s $6.5 Billion Chevron Deal Extends Oil Sands Buying Spree

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From Energy Now

Canadian Natural Resources Ltd.’s $6.5 billion acquisition from Chevron Corp. marks the latest in a string of deals that has helped make it the country’s largest oil producer and brought Alberta’s massive oil sands deposits almost entirely under local control.

CNRL has feasted on the oil sands assets of foreign energy producers over the past decade, snapping up stakes and operations from Devon Energy Corp. and Shell Plc as they shifted away from the higher-cost, higher-emissions oil sands business. Investors have applauded the strategy, which allows CNRL to boost output and make the operations more efficient.

That trend continued on Monday, with CNRL shares climbing more than 4% after the deal with Chevron raised its stake in a key oil sands mine and a connected upgrading facility, while also adding natural gas assets in the Duvernay formation.

“These assets build on the robustness of Canadian Natural’s assets,” said CNRL President Scott Stauth said on a conference call Monday. The deal boosts CNRL’s stake in the Athabasca oil sands project, which it first bought from Shell in 2017, to 90% from 70%.

The acquisition was largely expected and boosts CNRL’s oil and gas output by roughly 9%, adding the equivalent of 122,500 barrels of oil production per day.

“It’s just been a matter of time,” Eight Capital analyst Phil Skolnick said by phone, noting that CNRL had been seen as the logical buyer for Chevron’s oil sands business.

While CNRL also boosted its dividend by 7% on Monday, Desjardins analyst Chris MacCulloch  cautioned the company’s additional debt to finance the acquisition “may disappoint some investors” given it plans to temporarily slow capital returns.

Still, MacCulloch said the deal is positive overall for CNRL as it further consolidates assets in the region. “There’s no place like home,” he wrote in a note.

Chevron, for its part, is the latest in a long line of US and international oil producers — such as BP Plc, TotalEnergies SE and Equinor ASA — that have shifted away from the oil sands after spending billions to build facilities in the heavy-oil formation. That has left the oil sands largely in the control of Canadian firms including CNRL, Suncor Energy Inc. and Cenovus Energy Inc.

“There’s no remaining, obvious assets available,” Ninepoint Partners partner and senior portfolio manager Eric Nuttall said after Monday’s deal. Ninepoint owns 3.1 million shares in CNRL, data compiled by Bloomberg show.

Many of those oil sands deals have been struck at prices that favor the Canadian buyers, which have consolidated land, reduced costs and boosted returns in recent years.

“It’s Canada’s time to shine,” Nuttall said, adding that he expects foreign investors will return to the country’s oil producers in the future.

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Alberta

Alberta Preparing a New Regulatory Framework for iGaming

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With the success of the iGaming market in Ontario, Alberta is looking to it as a blueprint for its own plans in that arena. Despite this, there will likely be differences in the way the two provinces regulate this industry.  These potential differences will likely be based on the strategies laid out by Dale Nally, Alberta’s Minister of Service and Red Tape Reduction.

The manner in which Alberta eventually decides to handle its iGaming regulations will be crucial to maintaining a healthy balance for the industry there. Many other regions have begun seeing the drawbacks of over-regulation in this field. As a result, many new-age casinos operating offshore have been gaining popularity over traditional ones that are often stifled by restrictions. 

This is because restrictions place more onerous burdens on operators and cause lengthy delays with everything from sign-up procedures to payout times. However, offshore casinos have become a revelation for players tied down by these restrictions. For example, crypto casinos and the perks found at sites like an instant payout casino have seen the number of players from regions like the US, UK, Asia, Europe, and even Canada soaring in recent years.

Instant payout casinos in particular have grown very popular in recent years as they offer players same-day access to their winnings. This phenomenon has been playing out amid ever-tightening regulations on iGaming sites being deployed in many prominent markets. 

While reasonable regulations have their benefits, many players feel that most jurisdictions are over-regulating the industry now and players have begun to respond by flocking to offshore sites. Instant payout casinos offer a perfect refuge since platforms like these feature fewer restrictions, more expansive gaming libraries, more privacy, and more generous bonuses.  

While Alberta is drawing heavily from Ontario’s regulatory guidelines, it also wants to retain some aspects that will distinguish it too. Minister Nally has indicated that Alberta will seek a less onerous regulatory regime than Ontario. However, as it is with Ontario, there won’t be a limit imposed on the number of iGaming operators permitted. These would also not require any partnerships with land-based casinos. 

This approach is expected to foster a competitive online betting environment. As such, huge operators are expected to set up shop there and operate freely alongside the government-run Play Alberta—which currently holds a monopoly.

Nally’s ministry has already been busy working on these new regulations and is set to keep being so as it will also be directly responsible for overseeing iGaming regulations and their enforcement. This ensures a separate regulatory body need not be created. It also addresses concerns raised by operators that Alberta’s Gaming, Liquor, and Cannabis Commission (AGLC) would have a conflict of interest if it managed the new regime as the AGLC is a market operator since it runs the Play Alberta platform.

All in all, Alberta’s approach currently does look good and at least considers the need for making it as simple as possible for new entrants to gain access to the market. Alberta’s method to  “conduct and manage” gambling activities is in direct contrast with Ontario’s, where iGaming Ontario (iGO) is simply a subsidiary of the Alcohol and Gaming Commission of Ontario (AGCO).

The revenue-sharing model will also be looked at. Currently, Ontario operators are taxed 20% with the province making $790 million of them last year—with more expansion on the horizon. On that note, Alberta has hinted that it may seek a higher percentage. With other things like consults with indigenous communities and other stakeholders, and setting up transition periods for “grey” market operators, there is more work to be done. However, for now, the future of the iGaming industry in Alberta looks good indeed. 

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Addictions

Harm Reduction is a Lie: Red Deer South MLA Jason Stephan

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News release from Red Deer South MLA Jason Stephan

Truth is wonderful. We can trust in truth. Truth leads to better choices and more happiness. Yet, there are many lies around us. A failure to comprehend things as they were, as they really are, as they will be, results in bad choices and unhappiness.

Sometimes lies are cloaked in words which distort their true outcomes. One such lie is so called “harm
reduction”. One government program under the heading of harm reduction is “safe supply”. Safe supply is a lie. It is not “safe”.

Another government program under the heading of harm reduction is an “overdose prevention site”. That is a lie also – these sites do not prevent overdoses.

Consider this, if your neighbor was drowning in filthy waters, would you row a boat out, and do nothing,
watching your neighbor flail and choke beside you in filthy waters, and just before he was about to go under, grab his hair as he was about to drown? And then, gasping for air, would you let him go, so that he resumes flailing and choking in filthy waters? What if you kept doing that bizarre thing?

What would be the normal thing to do? Get them out of filthy waters and onto shore, of course. Begin with the end in mind – for men and women drowning in filthy waters of addiction, that means recovery, not drug sites that keep them in those filthy waters.

Supervised consumption / overdose prevention sites are in fact drug sites – where illegal drugs are consumed accompanied with many other bad things.

Albertans did not ask for drug sites in their communities. Government imposed them on Albertans.

As a private citizen, prior to serving as an MLA, I attended packed town hall meetings at Red Deer City
Hall. The vast majority of townhall participants did not want the NDP to impose a drug site in Red Deer. They did anyways.

The drug site in Red Deer has now been in our community for too many years and its impacts are
evident for all to see. Let’s speak plainly and honesty. Drug sites in Alberta are an attraction for individuals seeking to live in drug addictions. Because of drug sites, there are more, not less, individuals living in addictions in communities with drug sites.

There is an exodus of businesses from areas containing drug sites. I have seen it. There is too much stealing, too much vandalizing, too much uncertainty for local businesses, their employees, their customers.

Regardless of good intentions, the truth is that drug sites facilitate a growing lawlessness, including embedding and emboldening criminal elements, which either abuse drug sites or prey on those living in addictions, some of whom support addiction lifestyles through stealing or robbing businesses and families in our communities.

The truth is that “harm reduction” drug sites result in “harm production” to businesses and individuals in our communities seeking to peaceably live their lives, working, and raising their families.

Communities that do not want drug sites should not be forced to have them.

Red Deer City Council, listening to its citizens and businesses, passed a motion to get the drug site out of Red Deer. The Alberta government listened, announcing that the drug site will be removed out of Red Deer. That is good for Red Deer!

Other Alberta municipalities that have suffered with drug sites will follow Red Deer and will seek to get drug sites out of their communities also.

It is good to confront and reject harm reduction lies, get drug consumption sites out of Alberta, and support recovery for those suffering under addiction, blessing themselves, their families, and our communities.

Alberta is the best province in a nation in trouble. Our lives belong to ourselves, not government. The machine is not greater than the creator.

Alberta is a land of freedom and prosperity. We must be vigilant to keep it that way.

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