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MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
OIL
Canada’s oil industry remains competitive globally due to lower breakevens, but federal climate regulations could cap long-term output, according to BNEF.
- Canada produces 4.5m b/d of oil, 3m b/d from oil sands. Around two thirds of this output has a production cost below $20/b.
- Differentials between heavy sour Canadian crude and WTI have averaged $15/b in the last five years but has narrowed to $11/b amid the 590k b/d expansion of the TMX pipeline and with Mexico’s Maya crude exports to the USGC falling.
- This could cut in-situ breakeven breakevens to below $40/b, making it even more competitive globally BNEF said.
- However, crude production from oil sans is around 13% of Canada’s greenhouse gas emissions. Canada is planning a 40%-45% reduction in emissions from 2005 levels by 2030, possibly putting it at odds with increased output.
Source: Bloomberg
Source: Bloomberg
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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