Learn more about Hart Energy Conferences
Get our latest conference schedules, updates and insights straight to your inbox.
The weather issues that prompted TC Energy to declare force majeure on Keystone oil pipeline deliveries this week have been resolved, the company said on Nov. 16.
Calgary-based TC said on Nov. 15 it was curtailing volumes on the 622,000-bbl/d pipeline due to severe weather-related impacts. The company did not specify the size or duration of the cut in volumes, but market players estimated it at about 7%.
"The weather-related utility impacts to the Keystone facilities, which resulted in a temporary volume curtailment, have been resolved and the system is currently operating under normal conditions," TC said in a statement on Nov. 16 evening.
The pipeline was hit by three separate storms between Nov. 4 and Nov. 11 that caused power failures at two pump stations on the U.S. part of the system and at the Patoka, Ill., delivery station, causing the pipeline to temporarily shut down, one market source said.
Keystone ships crude from Alberta's oil sands to the U.S. Midwest and on to the Gulf Coast and is a key part of Canada's oil export network.
Western Canadian crude is trading at a discount of about $29 under the U.S. benchmark WTI, due to weak refining demand and months of U.S. strategic reserve releases that have added to competition for heavy Canadian oil.
Recommended Reading
Imperial Expects TMX to Tighten Differentials, Raise Heavy Crude Prices
2024-02-06 - Imperial Oil expects the completion of the Trans Mountain Pipeline expansion to tighten WCS and WTI light and heavy oil differentials and boost its access to more lucrative markets in 2024.
Oil Settles at Highest in Nearly 8 Weeks on Strong Economic Growth
2024-01-26 - Oil prices settled at their highest in nearly two months on Jan. 26 as positive U.S. economic growth and signs of Chinese stimulus boosted demand expectations.
ARC Resources Adds Ex-Chevron Gas Chief to Board, Tallies Divestments
2024-02-11 - Montney Shale producer ARC Resources aims to sign up to 25% of its 1.38 Bcf/d of gas output to long-term LNG contracts for higher-priced sales overseas.
Majors Aim to Cycle-proof Oil by Chasing $30 Breakevens
2024-02-14 - Majors are shifting oilfields with favorable break-even points following deeper and more frequent boom cycles in the past decade and also reflects executives' belief that current high prices may not last.
US Leads Global Oil Production for Sixth Straight Year-EIA
2024-03-11 - The Energy Information Administration says it is unlikely that the record will be broken by another country in the near term.