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China's Biggest Move In Oil Markets To Date – OilPrice.com

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China is making an aggressive entrance into the world of energy exchanges, but will it help the markets like some analysts suggest, or will it spell doom for oil prices?

Persistent oversupply in the global oil and gas market has created a difficult situation for smaller oil and gas companies who must find ways to compete in a debt-laden, low-priced environment against state-run oil titans like Saudi Aramco and deep-pocketed oil giants such as Exxon.

But the small oil and gas players—those private companies that are facing an uncertain future despite sitting atop a literal wealth of oil and gas in prolific US shale plays—may have just been handed their ticket out of trouble by the largest oil importer in the world, China. 

Or have they?

China, in its quest to shore up its energy security, is launching a new energy exchange that will make it much easier for buyers and sellers of all things energy—including gas, oil, LNG, carbon credits, and even chemical products—to find each other and do business together in the robust Chinese market that might otherwise seem daunting to enter.

For smaller US energy businesses—which account for nearly 60-70% of all energy companies in the United States–the Greater Bay Area International Energy Transaction Center, as the exchange is called, could be just what the doctor ordered: easier access to a tricky but colossal market.  

For China, the exchange is designed to protect its energy security at a time when its voracious appetite for crude oil exceeds its domestic production. 

On the surface, it seems like a marriage made in oil heaven.

But concerns with the new energy exchange are widespread, and global–from the United States to the Middle East.

Small Independents

Today, there are approximately 9,000 independent oil and gas companies operating in the United States—this includes only those businesses that produced fewer than 75,000 bpd and have less than $5 million in oil and gas sales per year. This class of producers accounts for 83% of all oil produced in the U.S., and 90% of all natural gas.

It’s a booming business—and no doubt some of these smaller players will jump at the chance to engage with Chinese companies to sell their oil and gas products. There are concerns, however, that easier access to the huge Chinese energy market will erode prices further—a price situation that China is looking forward to. 

As for those independents, some of which are struggling in the already lower oil price environment, additional price erosion could mean death.

Middle East

And then there are the Middle East producers. There was a time when the United States imported almost 150 million barrels of oil monthly from OPEC member countries, according to the Energy Information Administration. But then just a few years ago, the United States lifted the export ban on crude oil, and everything changed. In January 2017, the United States imported 117.6 million barrels of oil from OPEC. In September 2019—the last month for which there is data—the United States imported just 48 million barrels. 

That’s less than half.

OPEC nations—mostly Saudi Arabia, Venezuela, and Iraq—had enjoyed hawking their wares on the US market. But as the U.S. slowed its oil imports, Middle East producers set their sites on another large market: Asia, including China.

Those same OPEC nations that were hurt by U.S. oil production will also be hurt by China’s courting of U.S. oil companies through this exchange.  For OPEC, who has come up against the United States oil industry time and time again as it tries to lift prices through production cuts, American oil producers keep turning up like a bad penny.

A Geopolitical Foothold

China is hoping that the new international exchange platform will rival the LSE and NYSE when it comes to online trading of crude oil and other energy-related products, including settling trade and delivering it. In addition to crude oil, chemical products, and LNG mentioned above, it will also deal with LPG, methane, ethane, and energy derivatives. And there’s more: it will also make available market information.

But the exchange will also increase—to the worry of many—China’s geopolitical foothold in new markets.

China is fast sinking money into developing oil and gas resources in foreign countries, despite lower oil prices. Its state-run oil companies, including CNOOC, have been throwing money at oil projects in Brazil, Mexico, Guyana, Nigeria, and Canada–and the US Gulf of Mexico, to name just a few. And while some see this as just a method of filling the oil void left by its own domestic production, others see this as China’s way of controlling oil resources across the globe for geopolitical gain. 

China has already sunk money into Iran and Venezuela in the form of loans in exchange for cheap crude–two countries that have found themselves on the receiving end of US sanctions that have crippled their respective oil industries. This move has upset the geopolitical apple cart as the U.S. struggles to bring oil exports for both to zero–without China’s backing, the U.S. might have been successful in doing so.

The growth of a massive new energy exchange not only improves China’s global positioning to influence oil prices, but also increases its geopolitical clout as its money gives it influence in state-run oil companies that carry political sway within their governments–particularly with Venezuela’s PDVSA and Angola’s Sonangol.  

There is no doubt that the exchange will increase the energy trade between smaller players. Whether this will have a positive result for small U.S. energy companies or whether this will crush prices and increase China’s political might remains to be seen. 

Byt Julianne Geiger for Oilprice.com

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'A heartbreak': Ranchman's searching for new owner amid COVID-19 pandemic – Calgary Herald

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Article content continued

“With everything happening and the Calgary downtown being almost completely empty, it’s created sort of the perfect storm for restaurant killing and hospitality killing.”

Ranchman’s has been synonymous with Calgary cowboy culture for nearly 50 years after it first opened its doors April 27, 1972.

The country nightclub was a popular spot during the Calgary Stampede and throughout the rest of the year, being named the “Country Club of the Year” by the Canadian Country Music Association 11 times.

The venue temporarily shut its doors due to the COVID-19 pandemic on March 17, and it has remained closed since. Nightclubs such as Ranchman’s are not permitted to reopen until Stage 3 of Alberta’s relaunch, and public-health officials have said there is currently no timeline for when that might happen.

The bar was founded by Harris Dvorkin and Kevin Baker but ownership traded hands in 2017, following Dvorkin’s death. Calgary bar scene mainstay Doug Rasberry purchased the property alongside a group of local business owners.

Members of the Ranchman’s ownership group did not respond to numerous requests for comment from Postmedia.

Campbell said owners were only talking to “a select few people” about the situation.

“This was a heartbreak for him. Doug (Rasberry) was the first guy, when I took Ranchman’s to the market three and a half years ago, Doug lit up like a kid at Christmas. He was so excited to have an opportunity to take this history on,” he said.

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Calgary’s famous Ranchman’s country bar up for lease; iconic rafter saddles seized by bank – Global News

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Ranchman’s Cookhouse and Dancehall in Calgary, a country bar known for its rafter saddles and mechanical bull, is up for lease.

The building that hosts the bar, at 9615 Macleod Trail S.E, has been listed publicly for the first time in its history.

The real estate company running the lease told Global News that the building is available after the current owners terminated their lease due to COVID-19 economic struggles.

It had initially been taken over by new owners in 2017 — when the former owners sold the business, but kept ownership of the building itself.

Read more:
Ranchman’s new owners to preserve iconic Calgary restaurant, cowboy culture

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One concern is the iconic saddles that hang in the rafters have been seized by the bank, said realtor Rob Campbell.

Even though they don’t belong to the business owner, they’re being considered assets and are in the process of being seized.

Campbell said he’s received many calls with concerns from local members of the rodeo community over the loss of the history.


Ranchman’s Cookhouse & Dancehall.


Global News

Ranchman’s opened in 1972, nearly 50 years ago.

It closed due to the COVID-19 pandemic on March 17 and has not reopened.

Read more:
Consumers left with worthless passes and gift cards following COVID-19 business closures

Nightclubs are part of Stage 3 of Alberta’s relaunch and are not permitted to be open in the province yet.

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© 2020 Global News, a division of Corus Entertainment Inc.

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20 new cases of COVID-19 recorded in Saskatchewan push provincial total past 1,800 – CBC.ca

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The number of COVID-19 cases recorded in Saskatchewan continues to climb.

On Sunday, the province recorded 20 new cases, bringing the provincial total to 1,807. 

Of the new cases, 10 are in Regina, seven are in Saskatoon and two are located in the South East zones. The location of one more case is pending. 

The province indicated the seven new cases in Saskatoon are linked to the outbreak at Brandt Industries, where a total of 14 cases have been linked to the workplace. The Government of Saskatchewan indicates investigation has shown this outbreak may be linked to out-of-province travel.

This is the third day in a row the province has recorded double-digit increases. On Friday, the province recorded 19 new cases and 11 new cases on Saturday. 

Of the province’s 1,807 total cases, 140 are considered active and 1,642 are considered recovered. Twenty-seven of the 140 active cases are in communal living settings. 

The number of people in hospital has remained static at 10.

Active cases in Saskatchewan can be seen detailed in this graphic published by the Government of Saskatchewan as part of it’s daily COVID-19 updates. On Sunday, the province had annouced it recorded 20 new cases, bringing the provincial total to 1,807. (Supplied/Government of Saskatchewan)

According to the province’s daily update, nine people are receiving inpatient care and one is in intensive care. Seven of those patients are in Saskatoon, one is in Regina and another is in the South Central zone. The intensive care patient is currently receiving treatment in Saskatoon. 

Drive-thru testing in Regina will also be expanded and will now be available on Wednesdays from 4 p.m. to 8 p.m. When the drive-thru testing launched, it was originally open on Tuesday, Thursdays and Saturdays. 

Hours at the drive-thru testing site in Saskatoon have gone unchanged. 

So far, the province has conducted a total of 171,945 COVID-19 tests, with 2,426 conducted on Saturday alone. The province also announced it reached an important milestone when it comes to testing over the weekend, as it set a testing record with 2,873 tests conducted Friday.

That’s compared to the province’s previous record of 2,129 tests performed Aug. 6, 2020.

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