We are once again at that stage where prices for the fuels needed to power our vehicles, heat our homes and keep our world in general moving are volatile. Hairs on our heads have whitened and stress levels beneath our flesh have climbed at the progress in the price per squirt of gasoline throughout North America.
Some experts have opined that the per litre rate for petroleum is just mounting its charge from current levels around $1.25 to as high as $1.50 some time this summer.
In short, the petroleum industry again warrants our attention. It is perhaps an index on how the economy is growing that the industry is again appearing hale, even if events in the Middle East threaten to add to this volatility by encroaching on inventories.
Given our resource-based economy here in Canada, it is worthy of mention that one of the beasts of the oil industry came through with cheerful news this week. Calgary-based Canadian Natural Resources (T.CNQ) reported full year results on March 8, declaring that gross proved crude oil, SCO, bitumen and NGL reserves increased 8% to 4.09 billion barrels. Company gross proved natural gas reserves increased 4% to 4.45 Tcf. Total proved reserves increased 7% to 4.83 billion Barrels of Oil Equivalent (BOE).
Commenting on the results, Canadian Natural's Chairman Allan Markin said, "In Q4/11, we drilled a record number of crude oil wells and achieved record quarterly production of over 657,000 BOE/day. We increased our barrel of oil equivalent reserves on a Company Gross proved plus probable basis by 9% to 7.54 billion barrels, replacing 390% of our 2011 production.
"Our vast, diverse asset base continues to grow economically," Markin continued, "and will provide value and upside to shareholders for years to come."
Cash flow from operations was approximately $6.5 billion in 2011 compared to approximately $6.3 billion in 2010. The increase in cash flow was primarily a result of higher crude oil and NGL netbacks and higher North America exploration and production crude oil and NGL sales volumes.
This increased activity added to a net earnings figure of $2.6 billion, head and shoulders above the fiscal 2010 reading of $1.6 billion. Per-share earnings came in at $2.41 in 2011, towering over the $1.54 in the prior-year.
Profits in the quarter to end the year resulted in a quarterly dividend enhanced by 17% to 10.5 cents per share. The company also looks to restart operations at its Horizon oil sands project in Alberta.
Last month, the project was shut due to problems with a fractionator unit. The company had earlier said the plant will not return to full output until mid- to late March.
The extended outage forced it to cut its 2012 production target for the operation to 93,000-103,000 barrels a day from the previous forecast of 105,000-115,000 bpd.
Investors are cheering this week; the price rebounded Friday by 16 cents to $35.51, in about the middle of a 52-week price range that peaked on March 21 of last year at $48.94, having bottomed out at $27.25 last October.
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