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Alberta’s OPEC-style cuts draw down oil backlog, analysis firm says

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Concerns with the fallout from Alberta’s OPEC-style cuts may persist, but an energy data analysis firm says the mandatory oil curtailment appears to be drawing down crude inventories.

The province this month imposed an 8.7-per-cent oil-production cut on industry, or roughly 325,000 barrels a day, in order to clear a huge backlog of crude that was punishing Alberta oil prices.

Government officials haven’t released statistical updates on the effectiveness of the strategy, but a senior oil analyst at Genscape Inc. said its research indicates the curtailment is working as intended so far.

« We are seeing it through January 19th roughly in line with what the government has stated as their goals to draw down inventories, » Mike Walls said in an interview.

« For the most part, we saw significant builds [in inventories] basically throughout 2018, and now we are starting to see draws. So I can say that they are having an impact already. »

Premier Rachel Notley has pointed to the narrowing gap between Canadian and American benchmark oil prices as evidence of the impact of the government’s strategy. (Jason Franson/Canadian Press)

On Twitter Friday, Genscape said inventories in Western Canada fell 603,000 barrels to 34 million barrels for the week ending Jan. 18, pointing to it as « further evidence that Alberta production cuts continue to impact the market. »

The privately held U.S.-based firm uses both public data and proprietary research to gather information for clients on storage hubs, pipeline flows and crude-by-rail shipments in Western Canada.

The province did not confirm Genscape’s figures. The government gets its data from a third party and the information is not publicly available.

« We’re currently reviewing how much has been drawn down from all storage levels across Alberta, » government spokesperson Mike McKinnon said in an e-mail. « More information, including the next steps, will be available soon. » 

Alberta is matching its production levels to what its estimated export capacity is while also encouraging a drawdown in storage levels. For January and February, this production limit is 3.6 million barrels a day of raw crude and bitumen, which is slightly lower than the province’s estimated export capacity.

Premier Rachel Notley has pointed to the narrowing gap between Canadian and American benchmark oil prices as evidence of the impact of the government’s strategy.

Peter Tertzakian, executive director of the ARC Energy Research Institute, said he believes the province’s policy is working. (Monty Kruger/CBC)

On Friday, the difference was under $10 US a barrel. In the fall, it spiked to over $50.

Energy economist Peter Tertzakian, executive director of the ARC Energy Research Institute, said he believes the policy is working and that the price is a good gauge. 

« The differential has rebounded, » said Tertzakian.

« I’m optimistic we’re through the worst of it and hopefully we won’t need government intervention in the future. But the extraordinary action that they took at that time was appropriate.

« We were facing catastrophic layoffs had the situation gone on for several more weeks. I believe that was averted. Now, the situation is still not healthy, but I believe the government prevented something far worse from happening. »

Alberta announced in early December that it would temporarily impose production cuts on the industry in 2019.

The decision followed calls from some oil company CEOs — and United Conservative Party Leader Jason Kenney — for the province to enact a mandatory curtailment to bolster prices, improve cash flow and stem job losses.

But opponents of the policy — including Suncor, Husky Energy and Imperial Oil — said the market was working and that taking such a step could have implications for future investment in Alberta.

Hundreds of oil tank cars are waiting to be loaded at a terminal near the border of Alberta and Saskatchewan. For January and February, Alberta’s production limit is 3.6 million barrels a day of raw crude and bitumen, which is slightly lower than the province’s estimated export capacity. (Dave Rae/CBC)

Conference Board of Canada chief economist Pedro Antunes wrote this month that intervening in industry production plans « could hurt the province’s attractiveness for future investment over the long term. » 

But he also said the near-term solution « will likely be effective in shoring up prices and heading off a decline in royalties and a larger pullback in activity in the oilfield services sector. »

Industry and government will also be mindful of any significant interruption to rail or pipeline movement, which could have major impacts on the effort to reduce the oil glut if they occurred. 

Kevin Birn, an oilsands analyst with IHS Markit, said Alberta’s curtailment policy is probably something that’s going to be judged over a longer period of time.

« Yes, differentials have narrowed and that’s a positive metric because the prices we saw prior to Christmas were unsustainable, » Birn said. « But curtailment needs to be measured over a longer period of time. »

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Nostalgia and much more with Starburst XXXtreme

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Get a taste of adventure with Starburst XXXtreme based on the legendary NetEnt Game. The nostalgic themes are sure to capture fans of the classic version as they get treated to higher intensity, better visuals, and features. The most significant element of the game is its volatility. Patience will not be an essential virtue considering the insane gameplay, and there is a lot of win potential involved. It retains the original makeup of the previous game while adding a healthy dose of adrenaline. 

Starburst Visuals and Symbols

The game is definitely more conspicuous than before. The setting happens over a 5-reel, 3-row game grid with nine fixed win lines, which function if a succession from the left to the right reel is present. Only those players that that attain the highest win per bet line are paid. From a visual standpoint, the Starburst XXXtreme slots illustrates lightning effects behind the reels, which is not surprising as it is inherited from the original version. Available themes include Classic, Jewels, and Space. The game is also available in both desktop and mobile versions, which is advantageous for players considering the global pandemic. According to Techguide, American gamers are increasingly having more engaging gaming experiences to socialize to fill the gap of in-person interaction. Starburst XXXtreme allows them to fill the social void at a time when there is so much time to be had indoors. 

Starburst XXXTreme Features

Players get to alternate on three features which are Starburst Wilds, XXXtreme Spins, and Random Wilds. The first appears on reels 2,3, or 4. When these land, they expand to cover all positions while also calculating the wins. They are also locked for a respin. If a new one hits, it also becomes locked while awarding another respin. Starburst XXXtreme offers a choice between two scenarios for a higher stake. In one scenario with a ten times stake, the Starburst Wild is set on random on reels 2,3, or 4, and a multiplier starts the respin. The second scenario, which has a 95 times stake, starts with two guaranteed starburst wilds on reels 2,3, or 4. it also plays out using respin game sequence and features. The game also increases the potential with the Random Wilds feature to add Starburst Wilds to a vacant reel at the end of a spin. Every Starburst Wild gives a random multiplier with potential wins of x2, x3, x5, x10, x25, x50, x100, or even x150.

The new feature is sure to be a big hit with the gaming market as online gambling has shown significant growth during the lockdown. AdAge indicates the current casino customer base is an estimated one in five Americans, so Starburst XXXtreme’s additional features will achieve considerable popularity. 

What We Think About The Game

The gambling market has continued to diversify post-pandemic, so it is one of the most opportune times to release an online casino-based game. Thankfully Starburst XXXtreme features eye-catching visuals, including the jewels and space themes. These attract audience participation and make the gameplay inviting. The game also has a nostalgic edge. The previous NetEnt iteration featured similar visuals and gameplay, so the audience has some familiarity with it. The producers have revamped this version by tweaking the features to improve the volatility and engagement. 

That is characterized by the potential win cap of 200,000 times the bet. Starburst XXXtreme does not just give betting alternatives for players that want to go big. The increase of multipliers also provides a great experience. If the respins in the previous version were great, knowing that multipliers can go hundreds of times overtakes the game to a new level. 

Players should get excited about this offering. All of the features can be triggered within a single spin. Whether one plays the standard game or takes the XXXtreme spin route, it is possible to activate all of the features. Of course, the potential 200,000 times potential is a huge carrot. However, the bet size is probably going to be restricted and vary depending on the casino. It is also worth pointing out that a malfunction during the gameplay will void all of the payouts and progress. Overall, the game itself has been designed to provide a capped win of 200,000 times the original bet. 

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Anglais

‘We’re back’: Montreal festival promoters happy to return but looking to next year

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In downtown Montreal, it’s festival season.

In the city’s entertainment district, a musical act was conducting a sound check on stage Friday evening — the second day of the French-language version of the renowned Just For Laughs comedy festival. Tickets for many of the festival’s free outdoor shows — limited by COVID-19 regulations — were sold out.

Two blocks away, more than 100 people were watching an acoustic performance by the Isaac Neto Trio — part of the last weekend of the Festival International Nuits d’Afrique, a celebration of music from the African continent and the African diaspora.

With COVID-19 restrictions continuing to limit capacity, festival organizers say they’re glad to be back but looking forward to next year when they hope border restrictions and capacity limits won’t affect their plans.

Charles Décarie, Just For Laughs’ CEO and president, said this is a “transition year.”

“Even though we have major constraints from the public health group in Montreal, we’ve managed to design a festival that can navigate through those constraints,” Décarie said.

The French-language Juste pour rire festival began on July 15 and is followed by the English-language festival until July 31.

When planning began in February and March, Décarie said, organizers came up with a variety of scenarios for different crowd sizes, ranging from no spectators to 50 per cent of usual capacity.

“You’ve got to build scenarios,” he said. “You do have to plan a little bit more than usual because you have to have alternatives.”

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MELS new major movie studio to be built in Montreal

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MONTREAL — MELS Studios will build a new film studio in Montreal, filling some of the gap in supply to meet the demand of Hollywood productions.

MELS president Martin Carrier said on Friday that MELS 4 studio construction will begin « as soon as possible », either in the fall or winter of next year. The studio could host productions as early as spring 2023.

The total investment for the project is $76 million, with the Quebec government contributing a $25 million loan. The project will create 110 jobs, according to the company.

The TVA Group subsidiary’s project will enable it to stand out « even more » internationally, according to Quebecor president and CEO Pierre Karl Péladeau. In the past, MELS Studios has hosted several major productions, including chapters of the X-Men franchise. The next Transformers movie is shooting this summer in Montreal.

Péladeau insisted that local cultural productions would also benefit from the new facility, adding that the studio ensures foreign revenues and to showcase talent and maintain an industry of Quebec producers.

STUDIO SHORTAGE

The film industry is cramped in Montreal.

According to a report published last May by the Bureau du cinéma et de la télévision du Québec (BCTQ), there is a shortage of nearly 400,000 square feet of studio space.

With the addition of MELS 4, which will be 160,000 square feet, the company is filling part of the gap.

Carrier admitted that he has had to turn down contracts because of the lack of space, representing missed opportunities of « tens of millions of dollars, not only for MELS, but also for the Quebec economy. »

« Montreal’s expertise is in high demand, » said Montreal Mayor Valérie Plante, who was present at the announcement.

She said she received great testimonials from « Netflix, Disney, HBO and company » during an economic mission to Los Angeles in 2019.

« What stands out is that they love Montreal because of its expertise, knowledge and beauty. We need more space, like MELS 4, » she said.

There is still not enough capacity in Quebec, acknowledged Minister of Finance, the Economy and Innovation Eric Girard.

« It is certain that the government is concerned about fairness and balance, so if other requests come in, we will study them with the same seriousness as we have studied this one, » he said.

Grandé Studios is the second-largest player in the industry. Last May, the company said it had expansion plans that should begin in 2022. Investissement Québec and Bell are minority shareholders in the company.

For its part, MELS will have 400,000 square feet of production space once MELS 4 is completed. The company employs 450 people in Quebec and offers a range of services including studio and equipment rentals, image and sound postproduction, visual effects and a virtual production platform.

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