oil and natural gas sector analysis –october 2, 2016
TRANSCRIPT
Oil and Gas Sector Analysis –October 2, 2016BY: PAUL YOUNG, CPA, CGA
Paul Young, CPA, CGA - Bio
26+ years business experience 15+ years in Corporate Financial Planning and Analysis 11+ years in Financial Performance Management Solutions 8+ years in Academia (Public Finance, Advance Management
Systems, Advance Accounting 26+ years (Risk Management and Internal Controls 15+ years (Activity-based Costing)
Agenda
Commodity Price Index Commodity Prices Oil Rigs US Refinery Capacity Canada Oil and Gas Transmission In the news Government Policies
Commodity Index
Source: Scotiabank
Oil and Natural Gas Pricing
Source - BMO
Oil Rigs
Source: Baker Hughes
United States Refinery Capacity
Source: https://www.eia.gov
Canada Oil and Gas Transmission
Source: Stats Canada
Canada Oil and Gas Transmission
Source: Stats Canada
In the news LNG Project – BC Natural Gas pipeline approved – Source -
http://www.cbc.ca/news/canada/british-columbia/mayors-ubcm-pipelines-1.3784955 or http://vancouversun.com/news/local-news/feds-flying-to-vancouver-for-historic-lng-decision-expected-to-ok-megaproject
Analysts have increased their price targets for Canadian producers with market valuations of up to C$2 billion ($1.5 billion) more than equivalent U.S. peers. Canadian companies are expected to gain 21 percent over the next 12 months, compared with 13 percent for U.S. competitors, according to data compiled by Bloomberg. That valuation gap has made Canadian companies including Bonterra Energy Corp., Torc Oil & Gas Ltd. and Vermilion Energy Inc. attractive buys relative to U.S. peers, said Swanzy Quarshie, a money manager at Sentry Investments in Toronto. Source - http://calgaryherald.com/business/energy/canadas-small-cap-energy-stocks-set-to-outpace-u-s-in-catch-up
OPEC The 15th International Energy Forum, held in Algiers earlier this week, saw OPEC members decide to cut production by about 800,000 barrels per day. The cut will not be consistent across all member states but is significant nonetheless, being the first in eight years.The move is meant to stabilise global oil prices. - http://www.aljazeera.com/programmes/countingthecost/2016/10/opec-stagnant-price-oil-161001084546193.html
Canada Federal Government Carbon Tax –“To increase its price on carbon in line with the Pan Canadian Framework.” That’s the name of the national carbon-tax scheme the Trudeau government is trying to drag the provinces into agreeing with — although McKenna has suggested she’ll force any dissenters to comply anyway. Source - http://business.financialpost.com/fp-comment/kevin-libin-with-the-trudeau-liberals-every-policy-comes-back-to-carbon-taxes
Government Policies
LNG - http://www.slideshare.net/paulyoungcga/policy-liquefied-natural-gas-lng-canada
Carbon Tax/Pricing - http://www.slideshare.net/paulyoungcga/climate-change-policies-cap-and-trade-emissions-carbon-tax-carbon-pricing-canada