5) Canadian Supreme Court Kills Trudeau's "No More Pipelines Act"
Some cheerful news from north of the border:
[Canada's] top court dealt a blow to Prime Minister Justin Trudeau’s environmental policy on Friday, declaring the Liberal government’s Impact Assessment Act for major development projects involves an unconstitutional breach of provincial jurisdiction.
The case was heard after the federal government appealed last year’s ruling by Alberta’s top court, which declared the Impact Assessment Act unconstitutional because it violated the division of powers between Ottawa and the provinces. Federal Conservatives and provincial opponents — including Premier Doug Ford — have long lampooned it as the “No More Pipelines Act,” arguing that it imposes an undue burden on the private sector and will slow down or prevent major projects from getting built.
Canada Sup CT gives green light to more pipelines
Re: Canada Sup CT gives green light to more pipelines
Would be interested to know whether and if so how this might affect WCS differentials going forward.
Re: Canada Sup CT gives green light to more pipelines
In Canada and in Europe the Climate Change Wackos are losing power. FEAR of Global Warming is being pushed back by FEAR of Energy Poverty.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Canada Sup CT gives green light to more pipelines
People in some places are getting a taste of energy poverty, and for some that is motivating a bit more critical thinking and asking of questions and some policy adjustments. Apparently it is happening more in Europe and Canada than in the U.S. so far.
Wrote Don Simmons asking his take on effect of the decision re the Impact Assessment Act. His reply:
"I hope all is well down south. The opinion from the Supreme Court last week should have a positive effect on all future resource development in Canada.
The biggest effect on the WCS diffs will be the completion of the TransMountain pipeline from Edmonton to Vancouver. This will provide Canadian heavy oil producers with access to global oil markets and will lower the WCS diff. It is expected to be completed and line filling in Q1 2024 and in full operation in Q2 2024!!
This should add to Hemisphere’s bottom line."
Wrote Don Simmons asking his take on effect of the decision re the Impact Assessment Act. His reply:
"I hope all is well down south. The opinion from the Supreme Court last week should have a positive effect on all future resource development in Canada.
The biggest effect on the WCS diffs will be the completion of the TransMountain pipeline from Edmonton to Vancouver. This will provide Canadian heavy oil producers with access to global oil markets and will lower the WCS diff. It is expected to be completed and line filling in Q1 2024 and in full operation in Q2 2024!!
This should add to Hemisphere’s bottom line."
Re: Canada Sup CT gives green light to more pipelines
Hemisphere Energy (HMENF) is a pure play on Canadian Heavy oil.
> Extremely profitable
> Virtually debt free
> Steady production growth
> Extremely profitable
> Virtually debt free
> Steady production growth
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Canada Sup CT gives green light to more pipelines
Hemisphere's October presentation: https://www.hemisphereenergy.ca/sites/default/files/2023-10/HME%20Corp%20Presentation%20Oct%206%202023_FINAL%20WEBSITE_0.pdf
• At slide 6, look at sensitivity chart, FFF at $85 WTI. Q3, in which WTI averaged about $82 (?), and Q4 (currently over $85) should see significant FFF generation.
• Slide 13 shows HMENF’s low valuation based on PDP relative to peers (presumably due to its small size).
• At slide 14 note special dividend ($0.03 Cdn per share) on 11/1 to s/h of record on 10/20.
• Slide 15, last para (and fn 1) repeats recent announcement of ongoing acquisition of acreage said to be prospective (high oil in place and low recovery factor, with significant potential for EOR) such that it could become an additional core area, using a pilot polymer flood in 2024.
So, in 2024 HMENF could complete the acquisition of the additional 10+ sections and have success with a pilot polymer flood such that it could forecast significant increase in production. Increasing scale (especially without use of debt) should be perceived as reducing inherent risk and, together with increased FFF, contribute to increased valuation. With lower WCS diffs in 2024 (and if WTI stays at $80+), and if increased scale is achieved, perhaps market will re-rate HMENF higher.
• At slide 6, look at sensitivity chart, FFF at $85 WTI. Q3, in which WTI averaged about $82 (?), and Q4 (currently over $85) should see significant FFF generation.
• Slide 13 shows HMENF’s low valuation based on PDP relative to peers (presumably due to its small size).
• At slide 14 note special dividend ($0.03 Cdn per share) on 11/1 to s/h of record on 10/20.
• Slide 15, last para (and fn 1) repeats recent announcement of ongoing acquisition of acreage said to be prospective (high oil in place and low recovery factor, with significant potential for EOR) such that it could become an additional core area, using a pilot polymer flood in 2024.
So, in 2024 HMENF could complete the acquisition of the additional 10+ sections and have success with a pilot polymer flood such that it could forecast significant increase in production. Increasing scale (especially without use of debt) should be perceived as reducing inherent risk and, together with increased FFF, contribute to increased valuation. With lower WCS diffs in 2024 (and if WTI stays at $80+), and if increased scale is achieved, perhaps market will re-rate HMENF higher.