Archive for March, 2015

Financial Post

A New York lawsuit is threatening to make Connacher Oil and Gas Ltd. a casualty of crude’s collapse in Canada’s oil sands as creditors squeeze small producers in one of the priciest places to extract the fuel.

As oil prices resumed their slide to a new six-year low this week, creditors filed suit on Monday demanding Connacher immediately repay a $128.4 million loan. If successful, the suit would make it difficult for the company to stay in business unless it finds some other source of capital, according to Moody’s Investors Service Inc.

Connacher is among smaller oil-sands companies that drew interest from debt investors willing to finance upstart developments when U.S. crude prices averaged more than $90 a barrel. With prices now about half that, those so-called junior developers are fighting to stay afloat.

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“In this new pricing environment, my view is it’s going to be a struggle…

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Financial Post

OTTAWA — Barring a lower-for-longer period for oil prices, the impact of the plunge in crude costs is both good and bad for Canada — a view that has gained traction since the collapse in energy markets almost a year ago.

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THE CANADIAN PRESS/Jeff McIntosh
About 1,000 construction workers employed by a contractor at Husky Energy Inc.’s Sunrise oilsands project were laid off unexpectedly on Wednesday, a union official confirmed.

Izzy Huygen, a Fort McMurray, Alberta, representative of the Christian Labor Association of Canada, said many of the workers had expected their jobs to last until summer but were informed of the layoffs on Wednesday morning.

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However, there is wide agreement the drop in oil prices will have economic implications across the country, one way or the other, industry leaders and economists told a House of Commons finance…

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