In Canada’s North Atlantic, New Oil Frontier Shows Life Beyond Shale

The deficit for the month grew to C$1.98 billion ($1.93 billion) from C$1.35 billion a year earlier, the finance department said in a statement . Revenue fell 2.6 percent and public debt charges increased 3.8 percent to C$2.48 billion. Finance Minister Jim Flahertys annual budget, released in March, projected a deficit for the current fiscal year that began April 1 of C$18.7 billion, down from C$25.9 billion the previous year, in large part by reducing direct program expenses. The government anticipates direct program expenses, which dont include transfers to provinces or individuals, to fall to C$119.2 billion this year from C$122.1 billion. Spending on that component in the first four months of the current year rose 5.5 percent to C$34.2 billion. The budget gap for the first four months of the fiscal year widened to C$4.54 billion from C$4.16 billion. The finance department said the government is still on track to meet its 2013 budget targets. Total program expenses including transfers are up 3.4 percent in the four-month period, while revenue has increased 2.6 percent. Spending rose 0.1 percent in July. To contact the reporter on this story: Theophilos Argitis in Ottawa at targitis@bloomberg.net To contact the editor responsible for this story: David Scanlan at dscanlan@bloomberg.net More News:

Canada Stocks Rise as Oil Producers Offset Drop in Phone Shares

aWe came here to get the gold, not just to qualify so it feels like we still have a job to do right now. aWe truly feel like weare a team on the rise and weare a force to be reckoned with in womenas basketball. To continue what weave been doing in the last few years, we knew we couldnat just come here and not play our best and not qualify … We feel like weare good enough to be in the finals and thatas what we came here to do.a The Canadians will play Cuba for gold on Saturday. Canada opened up the contest with a late 12-0 run to lead 26-8 after the first 10 minutes of play. Puerto Rico outscored Canada 18-13 in the second quarter to cut into the lead, but the Canadians held a 39-26 advantage at halftime. Puerto Rico continued to apply pressure in the third, trimming the lead to single digits on two occasions. Canada finished the third with a 10-1 stretch to go ahead 58-40, and closed-out the match by holding Puerto Rico to eight points, while scoring 15. Natalie Achonwa of Guelph, Ont., added 11 points and 10 rebounds for Canada, while Brampton, Ont., product Tamara Tatham tallied 10 points and seven rebounds as Canada out-rebounded Puerto Rico 49-23. aUs winning this game is almost a relief a so much excitement a but also a relief that we did qualify,a Achonwa said. aTo be able to get rid of the jitters of qualifying and now to play for the gold, it will be a great experience.a Carla Cortijo was the top scorer for Puerto Rico with 22 points. Cuba, meanwhile, advanced to the final by upsetting Brazil 72-68 on Friday. Clenia Noblet scored 18 points for the Cuban squad while Leidys Oquendo added another 17. With 15 points, Adriana Pinto was Brazilas top scorer. The top three teams from the tournament advance to the 2014 championship.

Statoil said it may not be able to return to the region to drill more wells until 2015 because of rig availability; as rival drillers move in, it will be harder to get hold of the labor and winterized rigs essential to operate in the North Atlantic. “A discovery like this, which is the biggest in the world since 2010, will raise some attention. We are a little bit ahead of the game but expect increased competition,” said Geir Richardson, vice president of Statoil Canada Exploration. The state-owned Norwegian company is developing the field in a joint venture with Canadian partner Husky Energy Inc, which owns 35 percent of the field. U.S. oil based Chevron is already drilling its third exploration well in the Orphan basin, roughly 50 km northeast of the Flemish Pass, although a company spokesman said Chevron plans to keep the results confidential. Royal Dutch Shell, meanwhile, spent has C$970 ($940) million acquiring exploration rights on four parcels of land off the southwest shore of the province of Nova Scotia. The company shot three-dimensional azimuth seismic in the area over the summer, the first time such technology had been used in Canada, a Shell spokesman said. Newfoundland and Labrador’s Department of Natural Resources said geoscience data indicates a further 6 billion barrels of potential oil reserves remain undiscovered, in addition to the 3 billion barrels already found in the province’s waters, while the government of Nova Scotia said it has 8 billion barrels of oil potential offshore. Typically oil fields are only able to pump a third or less of total reserves. While that may appear paltry to Alberta’s vast oil sands, where output is expected to hit 5.2 million barrels a day by 2030, it also offers some advantages: Offshore production neatly sidesteps the issue of congested pipelines in landlocked Alberta that have driven down the price of oil sands crude, and provides easy access to markets in Europe and India. “It’s an escape hatch for companies producing in Canada,” Gheit added. ICEBERG ALLEY It isn’t without challenges, however, primarily rig availability and harsh environmental conditions. The Jeanne d’Arc basin is in “Iceberg Alley”, an area described on Statoil’s website as being characterized by sub-zero temperatures, severe sea states, intensive seasonal fog, pack ice and enormous icebergs.

Canada, Cuba to clash for gold

The Standard & Poors/TSX Composite Index (SPTSX) rose 2.46 points, or less than 0.1 percent, to 12,844.08 at 4 p.m. in Toronto. The benchmark Canadian equity gauge has jumped 5.9 percent this quarter, the biggest gain since September 2012, and is up 3.3 percent in 2013. Theres a lot of anxiety going into the weekend, said Andrew Pyle , fund manager with ScotiaMcLeod Inc. in Peterborough, Ontario. He manages about C$210 million ($204 million). Nobody should be naive out there, to think if we get a worst-case scenario with respect to the U.S. budget impasse that Canada comes out of this unscathed. You could see some very heavy losses in the TSX. The U.S. Senate voted to finance the government through Nov. 15, sending the bill to the House and setting up a weekend of negotiations and brinkmanship three days before federal spending authority runs out and a few weeks until the country reaches its borrowing limit. Destabilizing Effect President Barack Obama said in a televised statement that Congresss failure to approve funding would have a destabilizing effect on the economy.

Canada PM Won’t Accept US Rejection of Keystone XL

This won’t be final until it’s approved and we will keep pushing forward.” Harper, who made the remarks at a Canadian American Business Council event, said he’s been in regular contact with President Barack Obama. Harper said it will create 40,000 jobs in the U.S. “The logic behind this project is simply overwhelming,” the prime minister said. Harper said politics has cast doubt on whether the pipeline will be approved but said he’s optimistic it will be approved. “Ultimately, over time, bad politics make bad policy,” he said. “The president has always assured me that he will a make decision that’s in what he believes is in the best interests of the United States based on the facts. I think the facts are clear.” The Obama administration is considering whether to approve the pipeline, which would carry 800,000 barrels of oil a day from Alberta across six U.S. states to the Texas Gulf Coast. A decision late this year or early next year. Republicans, and business and labor groups, have urged the Obama administration to approve the pipeline as a source of much-needed jobs and a step toward North American energy independence. Environmental groups have been pressuring President Barack Obama to reject the pipeline, saying it would carry “dirty oil” that contributes to global warming. They also worry about a spill. Obama’s initial rejection of the pipeline last year went over badly in Canada, which relies on the U.S. for 97 percent of its energy exports. The pipeline is critical to Canada, which needs infrastructure in place to export its growing oil sands production.