The WTI oil price has fallen from more than US$70 per barrel to about US$52 per barrel very quickly in about two months. To make it worse, Canadian oil tends to sell at a discount to the WTI, partly because there are costs involved in transporting oil to the U.S. refineries. Natural gas prices also remain low in Canada. Low commodity prices have undoubtedly put a drag on many oil and gas producers, including Canadian Natural Resources (TSX:CNQ)(NYSE:CNQ). However, as one of the largest oil and gas producers in Canada, Canadian Natural Resources is holding up better than many others as it continues to be profitable and generates significant cash flow. Oil and gas producers are challenged by the lack of access to its markets with pipelines operating at full capacity. Some producers have even resorted to transporting oil by rail to the U.S. Therefore, Enbridge ’s Line 3 replacement project, which is expected to come online in the second half of 2019, will be warmly welcomed, as it’ll increase pipeline capacity. Canadian Natural Resources’s plans for 2019 Canadian Natural Resources estimates 2019 production levels of about 1.03-1.12 million barrels of oil equivalent per day and a product mix […]
