Welcome!

News Feed Item

Canadian Oil and Gas Prices Likely to Maintain Momentum to End of 2014

Loss of Edmonton Par data and other benchmarks still cause for concern as Canada eyes export markets outside the U.S.

CALGARY, ALBERTA -- (Marketwired) -- 07/03/14 -- NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES

Deloitte's Resource Evaluation & Advisory group released its current Canadian domestic oil and gas price forecast today, noting that the strengthening prices experienced during the second quarter are likely to continue, resulting in a stronger second half of 2014 for Canadian oil and gas producers.

"April through June has seen a strengthening of Canadian oil and gas prices as the U.S. works to refill their massive storage volumes and satisfy strong domestic demand," said Deloitte's Andrew Botterill, Senior Manager Resource Evaluation & Advisory. "This has increased our confidence in a stronger second half of 2014. But the long-range futures markets still indicate both oil and gas will remain softer for 2015 and beyond without increased exports to markets other than the U.S."

In the commentary accompanying Deloitte's June 30, 2014, forecast, Mr. Botterill focuses on the continuing disappearance of traditionally steadfast Canadian benchmarks such as Cromer Medium, Shell Edmonton Par and others. In recent years, companies have elected not to publish the oil and gas prices being paid at the refinery gate, thereby eliminating daily spot price benchmarks for different grades of Canadian crude. Edmonton Par is the latest to become extinct. Comprised of prices from Shell, Suncor (formerly Petro Canada) and Imperial Oil, Shell and Suncor stopped publishing some months ago. Deloitte predicted Imperial would likely follow suit and, on May 1 this year, they did - effectively eliminating the daily spot data behind the Edmonton Par reference price.

"Without these benchmarks, is it harder for Canada to have a good understanding of daily markets," Mr. Botterill. "Canada relies heavily on exports to the U.S. and the relationship between WTI and Edmonton oil prices can fluctuate greatly. Knowing when volumes are trading at a premium or a discount to the U.S., and understanding the economic drivers affecting this relationship, is vital for Canadian producers, investors and governments making decisions that affect our industry and our economy. At a time when Canada is looking to increase LNG and oil export volumes to markets other than the U.S., this adds more complexity to the way these volumes will be traded."

Deloitte's pricing team has developed an alternate Edmonton Par methodology that considers the near-term futures market and how it reflects the differentials between reference points in the next month.

Deloitte's June 30, 2014 forecast shows a WTI oil real price of US$100.00/bbl for 2014, decreasing to US$93.00/bbl for 2015 and eventually leveling out at US$85.00/bbl by 2018. Deloitte has forecast a US$7.00/bbl differential between WTI and Edmonton par that will decrease to US$2.00/bbl over the long term to match pipeline tariffs between the two markets.

With respect to natural gas, Deloitte's June forecast shows natural gas at an Alberta AECO real price of C$4.80/Mcf in 2014, dropping to $C4.40/Mcf for 2015 and up to C$6.00/Mcf by 2024. Deloitte's NYMEX real price is at US$4.60/Mcf throughout 2014, dropping to US$4.35/Mcf for 2015 and up to US$5.80/Mcf by 2024.

Canadian to U.S. exchange rate is forecast at $0.90 and is in line with current Canadian bank forecasts.

For Deloitte's complete oil and gas price forecast dated June 30, 2014 visit www.ajmdeloitte.ca/price-forecasts.html.

About Deloitte

Deloitte, one of Canada's leading professional services firms, provides audit, tax, consulting, and financial advisory services. Deloitte LLP, an Ontario limited liability partnership, is the Canadian member firm of Deloitte Touche Tohmatsu Limited. Deloitte operates in Quebec as Deloitte s.e.n.c.r.l., a Quebec limited liability partnership.

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms.

Contacts:
Gord Hawker
On behalf of Deloitte
403-200-6094

Jeannie Tsang
Deloitte
416-643-8084

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Much of the value of DevOps comes from a (renewed) focus on measurement, sharing, and continuous feedback loops. In increasingly complex DevOps workflows and environments, and especially in larger, regulated, or more crystallized organizations, these core concepts become even more critical. In his session at @DevOpsSummit at 18th Cloud Expo, Andi Mann, Chief Technology Advocate at Splunk, will show how, by focusing on 'metrics that matter,' you can provide objective, transparent, and meaningfu...
Increasing IoT connectivity is forcing enterprises to find elegant solutions to organize and visualize all incoming data from these connected devices with re-configurable dashboard widgets to effectively allow rapid decision-making for everything from immediate actions in tactical situations to strategic analysis and reporting. In his session at 18th Cloud Expo, Shikhir Singh, Senior Developer Relations Manager at Sencha, will discuss how to create HTML5 dashboards that interact with IoT devic...
The increasing popularity of the Internet of Things necessitates that our physical and cognitive relationship with wearable technology will change rapidly in the near future. This advent means logging has become a thing of the past. Before, it was on us to track our own data, but now that data is automatically available. What does this mean for mHealth and the "connected" body? In her session at @ThingsExpo, Lisa Calkins, CEO and co-founder of Amadeus Consulting, will discuss the impact of wea...
If there is anything we have learned by now, is that every business paves their own unique path for releasing software- every pipeline, implementation and practices are a bit different, and DevOps comes in all shapes and sizes. Software delivery practices are often comprised of set of several complementing (or even competing) methodologies – such as leveraging Agile, DevOps and even a mix of ITIL, to create the combination that’s most suitable for your organization and that maximize your busines...
There is an ever-growing explosion of new devices that are connected to the Internet using “cloud” solutions. This rapid growth is creating a massive new demand for efficient access to data. And it’s not just about connecting to that data anymore. This new demand is bringing new issues and challenges and it is important for companies to scale for the coming growth. And with that scaling comes the need for greater security, gathering and data analysis, storage, connectivity and, of course, the...
Manufacturers are embracing the Industrial Internet the same way consumers are leveraging Fitbits – to improve overall health and wellness. Both can provide consistent measurement, visibility, and suggest performance improvements customized to help reach goals. Fitbit users can view real-time data and make adjustments to increase their activity. In his session at @ThingsExpo, Mark Bernardo Professional Services Leader, Americas, at GE Digital, will discuss how leveraging the Industrial Interne...
Up until last year, enterprises that were looking into cloud services usually undertook a long-term pilot with one of the large cloud providers, running test and dev workloads in the cloud. With cloud’s transition to mainstream adoption in 2015, and with enterprises migrating more and more workloads into the cloud and in between public and private environments, the single-provider approach must be revisited. In his session at 18th Cloud Expo, Yoav Mor, multi-cloud solution evangelist at Cloudy...
SYS-CON Events announced today that Ericsson has been named “Gold Sponsor” of SYS-CON's @ThingsExpo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. Ericsson is a world leader in the rapidly changing environment of communications technology – providing equipment, software and services to enable transformation through mobility. Some 40 percent of global mobile traffic runs through networks we have supplied. More than 1 billion subscribers around the world re...
In the world of DevOps there are ‘known good practices’ – aka ‘patterns’ – and ‘known bad practices’ – aka ‘anti-patterns.' Many of these patterns and anti-patterns have been developed from real world experience, especially by the early adopters of DevOps theory; but many are more feasible in theory than in practice, especially for more recent entrants to the DevOps scene. In this power panel at @DevOpsSummit at 18th Cloud Expo, moderated by DevOps Conference Chair Andi Mann, panelists will dis...
The IETF draft standard for M2M certificates is a security solution specifically designed for the demanding needs of IoT/M2M applications. In his session at @ThingsExpo, Brian Romansky, VP of Strategic Technology at TrustPoint Innovation, will explain how M2M certificates can efficiently enable confidentiality, integrity, and authenticity on highly constrained devices.
The IoTs will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, will demonstrate how to move beyond today's coding paradigm and share the must-have mindsets for removing complexity from the development proc...
In his session at 18th Cloud Expo, Sagi Brody, Chief Technology Officer at Webair Internet Development Inc., will focus on real world deployments of DDoS mitigation strategies in every layer of the network. He will give an overview of methods to prevent these attacks and best practices on how to provide protection in complex cloud platforms. He will also outline what we have found in our experience managing and running thousands of Linux and Unix managed service platforms and what specifically c...
We're entering the post-smartphone era, where wearable gadgets from watches and fitness bands to glasses and health aids will power the next technological revolution. With mass adoption of wearable devices comes a new data ecosystem that must be protected. Wearables open new pathways that facilitate the tracking, sharing and storing of consumers’ personal health, location and daily activity data. Consumers have some idea of the data these devices capture, but most don’t realize how revealing and...
Peak 10, Inc., has announced the implementation of IT service management, a business process alignment initiative based on the widely adopted Information Technology Infrastructure Library (ITIL) framework. The implementation of IT service management enhances Peak 10’s current service-minded approach to IT delivery by propelling the company to deliver higher levels of personalized and prompt service. The majority of Peak 10’s operations employees have been trained and certified in the ITIL frame...
Many private cloud projects were built to deliver self-service access to development and test resources. While those clouds delivered faster access to resources, they lacked visibility, control and security needed for production deployments. In their session at 18th Cloud Expo, Steve Anderson, Product Manager at BMC Software, and Rick Lefort, Principal Technical Marketing Consultant at BMC Software, will discuss how a cloud designed for production operations not only helps accelerate developer...