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Canadian companies may double down on oilsands after Total writes off $9.3B in assets: analysts – CBC.ca

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Earlier this week, French energy giant Total announced it would write off $9.3-billion worth of oilsands assets in Alberta and cancel its oil lobby membership in the Calgary-based Canadian Association of Petroleum Producers.

Writedowns would include $7.3-billion related to its ownership in the Fort Hills oilsands mine in northern Alberta, and a 50 per cent stake in the ConocoPhillips-operated Surmont thermal oilsands project.

The moves reflect the Paris-based company’s dissatisfaction with the performance of its assets over the last number of years, said Richard Masson, chair of the World Petroleum Council.

“I think about the Fort Hill project in particular … Total has been very unhappy with that asset’s performance, [among others],” Masson said, citing capital cost overruns and curtailed oil production.

“So I think, as an international major, they look at the world and they say, ‘What things are we going to do to try and align with climate change?’

“The asset they had that wasn’t giving them good performance is the one they were prepared to take a big hit to.”

‘Stranded’ oil reserves

On Wednesday, Total said it was leaving the Canadian oil lobby because of a “misalignment” between the company’s climate ambition statement and CAPP’s public positions, adding that it considered oil reserves with high production costs to be produced more than 20 years in the future to be “stranded.”

While Masson said he didn’t feel that would be a dominant theme in the Canadian oilsands moving forward, Total didn’t represent the first example of an international company shifting focus away from those assets.

In 2017, Royal Dutch Shell struck a $12.74-billion deal with Canadian Natural Resources, stating at the time that the company did not have the scale or capability to remain in the oilsands long-term.

“What’s happening, in my mind, in [both] of those instances, both of those companies are international majors with big retail presences. Shell has gas stations around the world, as does Total,” Masson said.

“They do not want to see boycotts, they do not want to see anything that affects their brand in a negative way.”

Ben van Beurden, chief executive officer of Royal Dutch Shell, said in 2017 that the oilsands were no longer a strategic fit for his company in the long run. (Sergio Moraes/Reuters)

Kevin Birn, a Calgary-based analyst with IHS Markit, said the oilsands emerged, in part, from a world in which oil was in short supply. Today, he said, the market has changed.

“Companies like Total that are big and integrated will shift their priorities from one resource to another, where they think they have a competitive advantage,” Birn said.

“So you see a number of companies moving their portfolios away from the oilsands, but you also see Canadian companies doubling down on those assets because they feel they have a competitive advantage.”

With the Fort Hill project now a lower value on Total’s books, Masson said he expected that someone would soon try to make a deal to buy those assets.

“It’s easier for Total to say, okay, we’re going to take, I don’t know, 50 or 60 cents on the dollar for what we’ve paid for these things now that they’ve been written down so far,” he said.

“It may be that we see these assets change hands, probably to a Canadian company. And overall, that could be a good thing for Canada.”

Earlier this week, IHS Markit released its latest forecast for oilsands production growth, continuing a decade-long trend of industry experts projecting a less optimistic outlook for the sector.

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RCMP arrest second suspect in deadly shooting east of Calgary

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EDMONTON – RCMP say a second suspect has been arrested in the killing of an Alberta county worker.

Mounties say 28-year-old Elijah Strawberry was taken into custody Friday at a house on O’Chiese First Nation.

Colin Hough, a worker with Rocky View County, was shot and killed while on the job on a rural road east of Calgary on Aug. 6.

Another man who worked for Fortis Alberta was shot and wounded, and RCMP said the suspects fled in a Rocky View County work truck.

Police later arrested Arthur Wayne Penner, 35, and charged him with first-degree murder and attempted murder, and a warrant was issued for Strawberry’s arrest.

RCMP also said there was a $10,000 reward for information leading to the arrest of Strawberry, describing him as armed and dangerous.

Chief Supt. Roberta McKale, told a news conference in Edmonton that officers had received tips and information over the last few weeks.

“I don’t know of many members that when were stopped, fuelling up our vehicles, we weren’t keeping an eye out, looking for him,” she said.

But officers had been investigating other cases when they found Strawberry.

“Our investigators were in O’Chiese First Nation at a residence on another matter and the major crimes unit was there working another file and ended up locating him hiding in the residence,” McKale said.

While an investigation is still underway, RCMP say they’re confident both suspects in the case are in police custody.

This report by The Canadian Press was first published Sept. 13, 2024.

The Canadian Press. All rights reserved.

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Stampeders return to Maier at QB eyeing chance to get on track against Alouettes

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CALGARY – Mired in their first four-game losing skid in 20 years, the Calgary Stampeders are going back to Jake Maier at quarterback on Saturday after he was benched for a game.

It won’t be an easy assignment.

Visiting McMahon Stadium are the Eastern Conference-leading Montreal Alouettes (10-2) who own the CFL’s best record. The Stampeders (4-8) have fallen to last in the Western Conference.

“Six games is plenty of time, but also it is just six games,” said Maier. “We’ve got to be able to get on the right track.”

Calgary is in danger of missing the playoffs for the first time since 2004.

“I do still believe in this team,” said Stampeders’ head coach and general manager Dave Dickenson. “I want to see improvement, though. I want to see guys on a weekly basis elevating their game, and we haven’t been doing that.”

Maier is one of the guys under the microscope. Two weeks ago, the second-year starter threw four interceptions in a 35-20 home loss to the Edmonton Elks.

After his replacement, rookie Logan Bonner, threw five picks in last week’s 37-16 loss to the Elks in Edmonton, the football is back in Maier’s hands.

“Any time you fail or something doesn’t go your way in life, does it stink in the moment? Yeah. But then the days go on and you learn things about yourself and you learn how to prepare a little bit better,” said Maier. “It makes you mentally tougher.”

Dickenson wants to see his quarterback making better decisions with the football.

“Things are going to happen, interceptions will happen, but try to take calculated risks, rather than just putting the ball up there and hoping that we catch it,” said Dickenson.

A former quarterback himself, he knows the importance of that vital position.

“You cannot win without good quarterback play,” Dickenson said. “You’ve got to be able to make some plays — off-schedule plays, move-around plays, plays that break down, plays that aren’t designed perfectly, but somehow you found the right guy, and then those big throws where you’re taking that hit.”

But it’s going to take a team effort, and that includes the club’s receiving corp.

“We always have to band together because we need everything to go right for our receivers to get the ball,” said Nik Lewis, the Stampeders’ receivers coach. “The running back has to pick up the blitz, the o-line has to block, the quarterback has to make the right reads, and then give us a catchable ball.”

Lewis brings a unique perspective to this season’s frustrations as he was a 22-year-old rookie in Calgary in 2004 when the Stamps went 4-14 under coach Matt Dunigan. They turned it around the next season and haven’t missed the playoffs since.”

“Thinking back and just looking at it, there’s just got to be an ultimate belief that you can get it done. Look at Montreal, they were 6-7 last year and they’ve gone 18-2 since then,” said Lewis.

Montreal is also looking to rebound from a 37-23 loss to the B.C. Lions last week. But for head coach Jason Maas, he says his team’s mindset doesn’t change, regardless of what happened the previous week.

“Last year when we went through a four-game losing streak, you couldn’t tell if we were on a four-game winning streak or a four-game losing streak by the way the guys were in the building, the way we prepared, the type of work ethic we have,” said Maas. “All our standards are set, so that’s all we focus on.”

While they may have already clinched a playoff spot, Alouettes’ quarterback Cody Fajardo says this closing stretch remains critical because they want to finish the season strong, just like last year when they won their final five regular-season games before ultimately winning the Grey Cup.

“It doesn’t matter about what you do at the beginning of the year,” said Fajardo. “All that matters is how you end the year and how well you’re playing going into the playoffs so that’s what these games are about.”

The Alouettes’ are kicking off a three-game road stretch, one Fajardo looks forward to.

“You understand what kind of team you have when you play on the road because it’s us versus the world mentality and you can feel everybody against you,” said Fajardo. “Plus, I always tend to find more joy in silencing thousands of people than bringing thousands of people to their feet.”

This report by The Canadian Press was first published Sept. 13, 2024.



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26-year-old son is accused of his father’s murder on B.C.’s Sunshine Coast

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RICHMOND, B.C. – The Integrated Homicide Investigation Team says the 26-year-old son of a man found dead on British Columbia’s Sunshine Coast has been charged with his murder.

Police say 58-year-old Henry Doyle was found badly injured on a forest service road in Egmont last September and died of his injuries.

The homicide team took over when the BC Coroners Service said the man’s death was suspicious.

It says in a statement that the BC Prosecution Service has approved one count of first-degree murder against the man’s son, Jackson Doyle.

Police say the accused will remain in custody until at least his next court appearance.

The homicide team says investigators remained committed to solving the case with the help of the community of Egmont, the RCMP on the Sunshine Coast and in Richmond, and the Vancouver Police Department.

This report by The Canadian Press was first published Sept. 13, 2024.

The Canadian Press. All rights reserved.



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