Global Investment In Oil And Gas Soars - OilPrice.com

Global Investment In Oil And Gas Soars | OilPrice.com

1. Canada Wildfires Curb Gas Output

- Canada’s ongoing state of emergency that was triggered by rampant wildfires across the province of Alberta is taking a heavy toll on gas production in the country, shedding some 15% from production levels in April.

- Seven oil and gas producers announced production curtailments totaling 319,000 barrels of oil equivalent per day, followed by shut-ins of gas processing plants.

- The decline in natural gas production has pushed Canadian gas prices higher in both Alberta and British Columbia, both up 60-70 cents per mmBtu compared to last week and trading around 2.5 per mmBtu.

- Simultaneously, Canadian gas exports to the US have dropped from 5.2 BCf per day to 3.9 BCf per day, and even though there has been some upside, supplies into the Pacific Northwest depend on the weather in Alberta.

2. Lithium Merger to Create Battery Metal Major

- The $10.6 billion merger of two lithium-focused mining companies, Australia’s Allkem and the US-headquartered Livent, is set to create the world’s third-largest lithium miner.

- Livent CEO Paul Graves will become chief executive of the new company, to be US-based and listed on NYSE, whilst Allkem’s non-executive chairman will be its chairman.

- The deal has buoyed shares of other lithium producers as more M&A deals are now on the table, in a bid to consolidate production lines and ease sourcing for EV carmakers globally.

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