Oilsands

A “critical” lack of crude oil export capacity from Western Canada has forced Cenovus Energy Inc. to reduce production rates and store excess barrels in its reservoirs, the Calgary-based operator said Thursday.

A new growth front is emerging for liquid byproducts of natural gas as solvent scrubbing agents that replace or reduce steam currently used for subterranean “in-situ” oilsands production in northern Alberta.

Even the old mainstay growth customer, Alberta thermal oilsands projects, will let down Canadian natural gas producers, says a fall crop of industry and government forecasts that lean prices will continue to prevail.

TransCanada Corp. confirmed Thursday that a proposed partial conversion of its Energy East natural gas mainline to oil service is dead, blaming “changed circumstances” for loss of the C$15.7 billion ($12.6 billion) plan.

The green light has been flashed for construction to start on schedule in September at an environmental sore spot in Kinder Morgan Canada Ltd.’s growth-enabling pipeline project for oilsands production and industrial natural gas consumption.

The biggest Canadian source of new oil supplies will continue to be the nation’s top industrial natural gas burner, predicted the Canadian Association of Petroleum Producers (CAPP).

The proved oil reserves for 68 publicly traded global producers that trade on U.S. stock exchanges declined in 2016 for the second consecutive year, dinged by writedowns mostly for the value of Canadian oilsands projects and fewer extensions and discoveries, according to an analysis by the Energy Information Administration.

Voracious fuel consumption by Alberta oilsands production complexes has made them a potent force in pricing natural gas, according to the National Energy Board (NEB).

Calgary-based Cenovus Energy Inc. is taking full control of some Western Canadian oilsands assets and adding three million net acres to its natural gas-rich Deep Basin portfolio in a transformative $13.3 billion (C$17.7 billion) transaction with ConocoPhillips.