April 2021
EMS - April 28, 2021 - Discussion on CO&O Draft 2 Changes
CO&O Draft 2 Feedback Requested - Deadline extended to May 15, 2021
PJVA Survey
Industry optimism rising to pre-pandemic levels, CAPP energy symposium hears
Roadblocks and protests adding value to existing pipelines, says Enbridge CEO
Canadian oil producers CNRL, Cenovus plan new emissions targets, no pivot to renewables
PJVA Call for Nominations 2021-2022
EMS Announcement - April 28, 2021
New PJVA Model CO&O is about to be released to industry Learn MorePlease join us on April 28, 2021 from 9:00 am to 10:30 am as the CO&O Task Force facilitates a discussion and answers your questions on the most important changes made in Draft 2 of the CO&O. Don't miss this opportunity to raise your questions and get any clarification you may need before the comment deadline, which has been extended to May 15, 2021. Your input on Draft 2 is the final opportunity to contribute to the Model CO&O prior to its release to industry. We encourage you to review Draft 2 before the session. Please visit the PJVA website to access the documents.
Session Facilitators/Task Force Members:
- Tim Reimer
- Ib Moller
- Crawford Hutchinson
- Lynda MacNeill
And will be hosted by PJVA EMS Director: Doug Klug
Although virtual, registration space is limited so please sign up ASAP. Registration is free for PJVA members and $10 for non-members.
CO&O draft 2 feedback requested
PJVA members,
Your feedback and comments from your company's perspective are vital to the finalization of the CO&O Agreement and its timely release as the new industry standard model agreement going forward. To ensure early adoption, PJVA is asking for your final comments to Draft #2.
**Please note the deadline for submission has been extended to May 15, 2021.
Links to the relevant documents can be found here:
- Task Force Report - Part 1 Overview
- Task Force Report - Part 2.1 Annotated Head Document
- Task Force Report - Part 2.2 Annotated Operating Procedure
- Task Force Report - Part 2.3 Annotated Appendices
- Task Force Report - Part 3 Blackline Draft 1 to Draft 2
- Task Force Report - Part 4 Response to Reviewer Comments Draft 1 (Legal Size)
Please note that in the Overview document there are outstanding items from the comments received on Draft #1 for which the Task Force is requesting member input. These outstanding items are also cross-referenced within the relevant clauses in the Head Document, Operating Procedure or Appendices as applicable.
Submitting Comments:
To assist with your review, attached (or below) is a Word document with instructions for submitting comments and suggestions on Draft #2 along with a template for you to complete. Please provide the Task Force with a clear understanding of your concern or issue and your recommended solution. Please send your comments and suggestions in a single coordinated response from your organization to:
Subject Line: CO&O Agreement Draft 2 Comments
Submitting questions for clarification:
If you have direct questions, you would like further clarification on to complete your review, please send your questions to: taskforce@pjva.ca
Subject Line: Question - Draft 2 CO&O
PJVA Survey
We also ask that you complete this short Survey to help us understand your interest in and needs for adoption of the new CO&O. If you do not have comments on the CO&O to submit, but wish to complete the survey, please use the Comment space provided in the survey to share your thoughts as much as possible.
In appreciation for your time, those completed surveys returned by the due date of April 30th, in which the respondent has provided their contact information, will be entered into a draw for 1 of 5 gift cards. Participation in the draw is completely voluntary.
PJVA sincerely thanks you for your contributions to, and collaboration in, this initiative and with your ongoing support looks forward to the final release of the new CO&O.
**NOTE: Please check the PJVA website 'Model Agreements' tab for links to any of the documents enclosed that may not show up for you in this notice.**
Yours truly,
| Lynda MacNeill | Richelle Lindsay & Helen O'Brien |
| CO&O Task Force | PJVA Board of Directors |
Industry Optimism Rising to Pre-pandemic Levels, CAPP Energy Symposium Hears
Written by The Canadian Press Halliburton Labs and republished by EnergyNow April 7, 2021
CALGARY - The head of the Canadian Association of Petroleum Producers says predictions of the end of the oil industry during a global price war and the pandemic a year ago have proven false and the sector is rebounding to pre-COVID levels of production and pricing.
Speaking at the opening of the 2021 Scotiabank CAPP Energy Symposium, Tim McMillan says oil and gas producers are looking forward to being a key part of North America's recovery from the economic slump caused by the pandemic.
The two-day annual investor showcase is being presented virtually for the second year in a row.
The first speaker, Frank Macchiarola, senior vice-president of policy, economics and regulatory affairs for the American Petroleum Institute, says one of the most significant changes for the U.S. energy industry this year is the replacement of Donald Trump with President Joe Biden.
He highlighted the API's adoption of a climate change framework as a way to work with the new administration by endorsing a carbon price policy and outlining actions by government and industry to encourage new technologies and incentives to reduce emissions.
Macchiarola says the integration of the energy industry between Canada and the United States has grown over the past decade, noting that the process could have gone even further if Biden hadn't cancelled the permit allowing construction of the Keystone XL pipeline on his first day in office.
"There's no denying that we've been beaten, battered and wounded and industry was faced with some of the biggest challenges last year we've ever seen," said McMillan, noting crude oil prices have surpassed pre-COVID levels, natural gas demand is growing and storage levels are near a five-year low.
"Our industry still has its best days ahead of it. In fact, over the past year, our industry has rallied and we're approaching a future with cautious optimism."
The symposium is to feature presentations from CEOs of energy companies including Canadian Natural Resources Ltd., Cenovus Energy Inc. and Tourmaline Oil Corp.
This report by The Canadian Press was first published April 6, 2021.
The Canadian Press
*The newsletter may contain material sourced from to third party websites. The material is provided solely as a convenience to you and not as an endorsement by PJVA of the contents on such third party Websites. PJVA is not responsible for the content of third party sourced material and does not make any representations regarding the content or accuracy of materials on such third party Websites, or the availability of such Websites. If you decide to access third party Websites, you do so at your own risk.
Roadblocks and Protests Adding Value to Existing Pipelines, says Enbridge CEO
Written and published by The Canadian Press and republished by EnergyNow April 8, 2021
CALGARY - The CEO of Enbridge Inc. says the company's ongoing battles with opponents over two of its U.S. oil pipelines will eventually be recognized in higher valuations for those assets as North American energy demand inevitably increases.
Al Monaco, speaking on Day 2 of the virtual 2021 Scotiabank CAPP Energy Symposium, says regulatory and political obstacles to building pipelines are expected to continue to make new pipelines hard to build, which should make "pipe in the ground" more valuable for investors.
He says he's optimistic that Enbridge's $9.3-billion Line 3 pipeline replacement project will be placed in service as scheduled in the fourth quarter of this year, despite ongoing protests and legal challenges.
Meanwhile, the company continues to fight in court an order from Michigan Gov. Gretchen Whitmer to shut down its Line 5 pipeline through the Great Lakes, arguing the state doesn't have that jurisdiction and that the conduit is vital to U.S and Canadian customers.
Enbridge, Monaco says, is ahead of its competitors on the global energy transition thanks to businesses it has added to its core oil transport operations, along with its goals to cut its energy intensity by 35 per cent by 2030 and get to net-zero emissions by 2050.
He says his oil shipper customers remain cautious after prices crashed last year amid a global price war and low demand due to COVID-19 pandemic lockdowns. The Enbridge Mainline system accounts for about 70 per cent of Canadian oil exports into the United States.
"My sense is that industry is still cautious and, I gotta tell you, that's a good thing. We haven't really seen yet any change from the new mantra of discipline around returns and return of capital," Monaco said.
"What's different now, I think, is that everybody is paying attention to the global supply and demand balance and prices."
The Line 3 project is expected to add about 370,000 barrels per day of export capacity from Western Canada into the U.S.
This report by The Canadian Press was first published April 7, 2021.
*The newsletter may contain material sourced from to third party websites. The material is provided solely as a convenience to you and not as an endorsement by PJVA of the contents on such third party Websites. PJVA is not responsible for the content of third party sourced material and does not make any representations regarding the content or accuracy of materials on such third party Websites, or the availability of such Websites. If you decide to access third party Websites, you do so at your own risk.
Canadian Oil Producers CNRL, Cenovus Plan New Emissions Targets, No Pivot to Renewables
Written and published by EnergyNow April 7, 2021
WINNIPEG, Manitoba, April 6 (Reuters) - Canadian Natural Resources Ltd (CNRL) and Cenovus Energy Inc, two of Canada's biggest oil producers, said on Tuesday they would set new goals to reduce greenhouse gas emissions but not pivot away from their core businesses.
Oil sands producers, which extract some of the world's most carbon-intense crude, face investor pressure to reduce their environmental impact. Prime Minister Justin Trudeau plans to raise Canada's carbon price steeply over time to position the country for carbon-neutral status by 2050.
CNRL's corporate emissions-cutting goal will be announced in the second quarter, President Tim McKay said at the Scotiabank CAPP Energy Symposium, which is being held remotely.
The company cut carbon intensity per barrel by 18% between 2016 and 2020 and sees carbon capture as a way to further reduce its environmental toll, McKay said.
It does not plan major investments in renewable energy as European oil majors have done.
"The preference is to stick with what we know and what we're good at," McKay said. "There's going to be a need for oil long-term."
Cenovus is also planning new emissions-cutting targets and might invest in renewable power partnerships.
"Where we're likely to remain is focused on oil and gas production," Cenovus Chief Executive Officer Alex Pourbaix told the symposium. "But don't look for us to become a late-entrant renewable-power developer."
Suncor Energy Inc is on track to achieve its goal of cutting the emissions intensity of production by 30% versus 2014 levels by 2030, said Chief Financial Officer Alister Cowan, and is now talking about updating its target beyond 2030.
Imperial Oil Ltd could adopt technologies of parent company Exxon Mobil Corp like carbon capture and biofuel blending, Senior Vice President of Finance Dan Lyons said.
"When it comes to wind farms and solar farms, that's not really in our wheelhouse."
Sticking to fossil fuels will jeopardize the businesses long-term, said Keith Stewart, senior energy strategist at Greenpeace Canada.
"They will go the way of Blockbuster Video once Netflix arrived," Stewart said.
Canada's transition to a low-carbon economy could displace up to 450,000 oil and gas workers over the next three decades, TD Economics said.
(Reporting by Rod Nickel in Winnipeg and Nia Williams in Calgary; Editing by Marguerita Choy and Peter Cooney)
*The newsletter may contain material sourced from to third party websites. The material is provided solely as a convenience to you and not as an endorsement by PJVA of the contents on such third party Websites. PJVA is not responsible for the content of third party sourced material and does not make any representations regarding the content or accuracy of materials on such third party Websites, or the availability of such Websites. If you decide to access third party Websites, you do so at your own risk.
PJVA Board of Directors Call for Nominations 2021-2022
The Petroleum Joint Venture Association (PJVA) requests a Call for Nominations to fill Board positions for the 2021 - 2022 Board of Directors. These roles have a minimum two (2) year commitment to the portfolio and the Board. The following portfolios require a candidate for the upcoming Board year:
Description of Portfolio - Task Forces Director
The Task Forces Director is responsible for coordinating the various Task Forces engaged in maintaining and updating the current suite of PJVA Model Agreements, and initiating new Task Forces as required to develop new Model Agreements for use in industry.
Description of Portfolio - Marketing and Publicity Director
The Marketing and Publicity Director is responsible for the development and implementation of a marketing strategy to increase the visibility of the PJVA in industry, and to coordinate and direct communications with our membership, other industry associations, and industry at large through various platforms including newsletters, joint events, website and email.
Description of Portfolio - Treasurer
The Treasurer serves on the Executive of the Board and is responsible for the accounting, financial, audit, and annual budgeting functions of the Association. The Treasurer will monitor and maintain a balanced budget for each fiscal year on behalf of the PJVA.
Detailed descriptions of the requirements for each of the portfolios is available by request at pjva@pjva.ca. Indicate Nominations Committee in the subject line of your email.
Candidates interested in putting their names forward for any of the available positions must submit a completed Nomination Form to the Nominations Committee for consideration. Nomination forms are available by request at pjva@pjva.ca, indicate Nominations Committee in the subject line of your email.
Nominations are due by May 25, 2021. Any questions regarding the nomination process or requirement for the roles can be directed to pjva@pjva.ca, indicating Nominations Committee in the subject line of your email.