Oil prices to surpass $US100 by 2040: report

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Canada's Oil Patch
Pumpjacks at work pumping crude oil near Halkirk, Alta., June 20, 2007. The Conference Board of Canada says oil and gas producers are expected to dive into the red this year, but begin crawling back to profitability in 2016 as cost-cutting efforts bear fruit.

TORONTO – The National Energy Board says crude oil prices are projected to rise to more than US$100 a barrel by 2040.

Peter Watson, the board’s chairman and CEO, says in a prepared text of a speech that the regulator is taking a long-term view of the country’s energy future in a report to be released today.

Watson, who is set to speak before the Toronto Region Board of Trade, says the outlook is a challenging undertaking given the current, uncertain economic environment.

Since mid-2014, the global price of crude has fallen about US$80 a barrel down to about US$30 a barrel.

The board projects oil prices will rise to about US$80 a barrel in four years and up to about US$105 by 2040.

Watson says if oil prices remain lower for longer — staying closer to US$55 a barrel in 2020 and only reaching US$80 a barrel by 2040 — production will be essentially flat after 2020, plateauing at about 4.8 million barrels daily for the next 20 years.

But the board projects that won’t be the case and Canada’s overall energy production will grow significantly over the next 24 years.

By 2040, Canadian oil production is forecast to increase 56 per cent to 6.1 million barrels daily, and natural gas production to grow 22 per cent to 17.9 billion cubic feet daily.

That could be different if no pipeline projects, such as Keystone XL or Energy East, proceed in the future, the board says.

The more expensive alternative of using rail to ship oil would cause lower prices for Canadian producers, but many projects would still remain profitable, the board added. In this scenario, it projects Canadian oil production to be eight per cent lower with 5.6 million barrels daily by 2040.

The report also said Canadians’ energy consumption is expected to grow about 20 per cent by 2040, with fossil fuel consumption and greenhouse gas emissions anticipated to increase.

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Al-Jazeera sues Egypt over crackdown
January-27-16 11:31 AM

CAIRO – Al-Jazeera is suing Egypt over its crackdown on the Qatar-owned broadcaster’s activists and reporters, including Canadian journalist Mohamed Fahmy, following the 2013 overthrow of Islamist President Mohammed Morsi.

The network said Wednesday in a statement posted online that it had “no other option” but taking legal action through the International Centre for Settlement of Investment Disputes (ICSID) in Washington DC. It said the move came months after Cairo declined to respond to the network’s complaints.

The network says Egyptian authorities have caused it to incur losses of $150 million.

Egyptian government spokesman Hossam Qawish declined to comment, saying authorities haven’t seen the report.

Al-Jazeera was widely seen as a mouthpiece for Morsi’s Muslim Brotherhood group. After his 2013 overthrow, Egypt revoked Al-Jazeera’s press credentials, raided its offices and arrested several reporters.

“A large number of journalists working for Al Jazeera were subjected to harassment, arrest and detention, either without charge or on clearly spurious and politically motivated charges,” the statement said.

Fahmy and two of his colleagues — Australian correspondent Peter Greste and Egyptian producer Baher Mohamed — were arrested in Cairo in December 2013 and accused of terror-related offences. The arrests and the trial sparked an international outcry.

They were sentenced to up to 10 years imprisonment in June 2014 on charges of affiliation with the Brotherhood — now outlawed as a terrorist group — and fabricating images to harm Egypt. All three were released last year.

Fahmy has filed a $100-million lawsuit against Al Jazeera Media Network, accusing the company of negligent conduct, negligent misrepresentation and breach of contract.

In its lawsuit against Egypt, Al-Jazeera detailed other violations, including attacks by soldiers, police and what it described as “gangs supporting the military government” in addition to the jamming of transmissions and broadcasts.

“Egypt’s actions have placed it in clear breach of its obligations under the Qatar-Egypt Bilateral Investment Treaty,” it said.

— With files from The Canadian Press.