Oilweek Magazine online newsfeeds http://www.oilweek.com TORONTO _ The Toronto stock market was little changed early Tuesday afternoon as Scotiabank handed in a better than expected earnings report and commodity prices weakened.The S&P/TSX composite index dropped 18.1 points to 11,945.7.The Canadian dollar rose 0.33 of a cent to 97.64 cents US, approaching the highest level of the year.Scotiabank (TSX:BNS) turned in a first-quarter profit of $988-million, up 17 per cent from a year earlier. Scotiabank said that was the equivalent of 91 cents a diluted share or 93 cents on a cash basis, five cents a share better than analysts had forecast. Revenue came in at $3.9 billion, also above expectations.Provisions for credit losses were $371 million, down from $420 million in the prior quarter. Scotiabank`s shares were down 57 cents at $49.53, but that was after having risen over the past week as earnings reports from other banks lifted financials.Scotiabank was the last of the big banks to report quarterly earnings. All save Royal Bank (TSX:RY) handed in earnings that beat analyst expectations.Canada`s five biggest banks saw their profits soar in the first quarter compared to the previous year when the recession battered earnings. Combined, they raked in $5.09 billion in profits in the quarter.For the first quarter, one of the standouts was the retail and commercial banking, said John Kinsey, portfolio manager at Caldwell Securities.That is sort of the nuts and bolts of their business (and) for most of them, the loan loss provisions were down. So those two things put together make a good case for recovery in the Canadian economy.Crude prices fell back after rising about 15 per cent over the last month on hopes for rising demand. The April oil contract on the New York Mercantile Exchange was down 25 cents at US$81.62 a barrel and the energy sector pulled back 0.48 per cent. Suncor Energy (TSX:SU) declined 55 cents to C$31.48 while Canadian Oil Sands Trust (TSX:COS.UN) slid 31 cents to C$27.84.The gold sector was down 0.33 per cent as a stronger U.S. dollar helped send the April gold contract on the Nymex $2.40 lower to US$1,121.60 an ounce. On the TSX, Kinross Gold Corp. (TSX:K) faded 11 cents to C$19.25.The base metals sector eased 0.33 per cent as May copper was unchanged at US$3.41 a pound. Teck Resources (TSX:TCK.B) was down 47 cents at C$41.10.The tech sector was supportive, up 0.54 per cent with Celestica (TSX:CLS) ahead 14 cents at $11.15 and CGI (TSX:GIB.A) gaining 22 cents to $15.25.The cautious trading on markets Tuesday came 12 months after the market hit bottom in the depths of the financial crisis, which was sparked by the collapse of the U.S. housing sector. Stocks have surged since hitting multi-year lows on March 9 of last year, with the turnaround starting a day later when U.S. bank Citigroup said it was turning a profit.Since then, evidence of so-called green shoots and signs of a tentative recovery have sent indexes surging. The S&P/TSX composite is up 58 per cent from a year ago, while the Dow Jones industrial average is ahead 61.2 per cent.But the markets have found it harder to gain traction since the beginning of this year as investor expectations have grown and stocks are seen as more fairly valued now. That means it will take more than just an occasional upbeat economic report or earnings release to send stocks higher.Things turned out an awful lot better than we had thought, added Kinsey.Most of the good news is out. I think what we`re hoping for this year is that we will have modest, but kind of steady growth.The TSX Venture Exchange moved 0.49 of point lower to 1,561.44.Financial and tech stocks helped support U.S. markets as the Dow Jones industrials climbed 48.9 points to 10,601.4.The Nasdaq composite index gained 17.63 points to 2,349.85 while the S&P 500 index was up 5.8 points to 1,144.3.In other corporate news, shares in Cisco Systems Inc. rose 21 cents to US$26.34. The computer networking gear company said that it was upgrading one of its biggest pieces of networking hardware, a router that`s used to power the most trafficked parts of the Internet backbone. Its new model is three times faster.Bombardier Inc. (TSX:BBD.B) has cancelled a plan to buy back up to US$550 million of its outstanding debt securities and issue new notes. The transportation giant said that current market conditions are such that the offering is unattractive and unsatisfactory to Bombardier at this time. Its shares were down 23 cents at $5.86.Shares in Alimentation Couche-Tard Inc. (TSX:ATD.B), Canada`s largest convenience store operator, lost 75 cents to $19.29 as it reported its third-quarter profits fell to US$54.8 million from $71.1 million as the company was hit with lower fuel revenues in the United States.Major Drilling Group International Inc. (TSX:MDI) shares were down $1.02 to $26.90 as the company narrowed its fiscal 2010 third-quarter loss to $4.5 million or 19 cents a share from $5.1 million or 21 cents in the comparable 2009 period. Revenue for the three months ended Jan. 31 was $72.5 million, down from $87.4 million the previous year. http://www.oilweek.com/news.asp?ID=27178 Chevron Corp. (NYSE:CVX) said Tuesday it will cut 2,000 jobs this year and sell some overseas operations as it revamps its struggling refinery, marketing and transportation operations.The job cuts represent almost 12 per cent of its 17,000 workers in the so-called downstream part of its business and just over three per cent of its overall workforce.Executives of the second-largest U.S. oil producer are still deciding where and when they will eliminate the jobs as they try to complete the restructuring by the third quarter, company spokesman Lloyd Avram said. Additional cuts are expected next year.Chevron said it will also seek bids for the Pembroke refinery in southwest Wales, and fuels marketing, aviation and lubricants businesses in the Caribbean and some markets in Central America.Oil refineries, which turn crude into gasoline, diesel and other fuels, struggled amid rising oil prices and falling demand last year. In addition, new refineries are being built.Downstream conditions are likely to be difficult for the next several years, Mike Wirth, executive vice-president of Chevron`s global downstream business, said in a statement.Argus Research analyst Phil Weiss said he believes Chevron is making the right move but he questions whether the producer will get a good price for the assets in the difficult business environment which has affected the entire sector.Chevron has said it will reduce spending by $1 billion this year on downstream businesses, which include refining, marketing and transportation.Chevron wants to focus its downstream portfolio in North America and the Asian-Pacific region, and is shifting its production toward natural gas and Asian assets.In addition to seeking bids for the Pembroke refinery and for fuels marketing, aviation and lubricants businesses in the Caribbean and Central America, Chevron said it is reviewing refinery operations in Hawaii and other undisclosed operations outside South Africa, Avram said.Chevron has growing operations in Canada, where it is a minority partner in the Athabasca oilsands project in northern Alberta, a project operated by Shell Canada and which includes Marathon Oil Corp.The company also has major interests in oil and gas exploration and production offshore Newfoundland and Labrador on Canada`s East Coast.It also owns a 75-year-old refinery in suburban Vancouver, where it refines diesel and gasoline to supply its 150 gasoline stations in British Columbia. There has been some speculation that Chevron might consider selling that refinery, located in Burnaby, B.C., just outside VancouverA Chevron spokesman declined comment on how the cuts announced by the parent company will affect Canada.The company, which is based in San Ramon, Calif., said severance charges are expected to range between $150 million and $200 million on an after-tax basis in the first quarter.The company has about 60,000 employees worldwide, including about 17,000 in downstream operations that include refining, marketing and retail operations. It laid off 1,900 employees in refining and gasoline marketing operations last year.Shares of Chevron fell four cents to US$74.60 in trading Tuesday on the New York Stock Exchange. http://www.oilweek.com/news.asp?ID=27177 CALGARY _ Vero Energy Inc. (TSX:VRO) raised its production guidance for the current quarter, the company said Tuesday as it announced a reduced quarterly loss.The Calgary-based oil and gas producer says it`s currently producing above its target for the first quarter.As a result, the target has been increased to 9,500 barrels per day at the end of March, up from 9,000 barrels per day in the previous guidance.Vero also cut its loss for fourth quarter ended Dec. 31 to $932,000 or a penny a share compared with a loss of $1.1 million or three cents a share in the same 2008 period.The Calgary company`s production revenue was slashed to $22.5 million compared with $30.9 million in the fourth quarter of 2008.Full-year loss totalled $20.1 million or 50 cents a share, reversing net income of $21.9 million or 67 cents a share in the prior year period.Twelve-month revenue fell 44 per cent to $78.1 million.Vero Energy`s shares were up 10 cents to $7.50 on the Toronto Stock Exchange. http://www.oilweek.com/news.asp?ID=27176 Chevron Corp. (NYSE:CVX) said Tuesday it will cut 2,000 jobs this year and sell some overseas operations as it revamps its struggling refinery, marketing and transportation operations.The job cuts represent almost 12 per cent of its 17,000 workers in the so-called downstream part of its business and just over three per cent of its overall workforce.Executives of the second-largest U.S. oil producer are still deciding where and when they will eliminate the jobs as they try to complete the restructuring by the third quarter, company spokesman Lloyd Avram said. Additional cuts are expected next year.Chevron said it will also seek bids for the Pembroke refinery in southwest Wales, and fuels marketing, aviation and lubricants businesses in the Caribbean and some markets in Central America.Oil refineries, which turn crude into gasoline, diesel and other fuels, struggled amid rising oil prices and falling demand last year. In addition, new refineries are being built.Downstream conditions are likely to be difficult for the next several years, Mike Wirth, executive vice-president of Chevron`s global downstream business, said in a statement.Argus Research analyst Phil Weiss said he believes Chevron is making the right move but he questions whether the producer will get a good price for the assets in the difficult business environment which has affected the entire sector.Chevron has said it will reduce spending by $1 billion this year on downstream businesses, which include refining, marketing and transportation.Chevron wants to focus its downstream portfolio in North America and the Asian-Pacific region, and is shifting its production toward natural gas and Asian assets.In addition to seeking bids for the Pembroke refinery and for fuels marketing, aviation and lubricants businesses in the Caribbean and Central America, Chevron said it is reviewing refinery operations in Hawaii and other undisclosed operations outside South Africa, Avram said.Chevron has growing operations in Canada, where it is a minority partner in the Athabasca oilsands project in northern Alberta, a project operated by Shell Canada and which includes Marathon Oil Corp.It also owns a 75-year-old refinery in suburban Vancouver, where it refines diesel and gasoline to supply its gas station network in British Columbia and Alberta. There has been some speculation that Chevron might consider selling that refinery, located in Burnaby, B.C.The company, which is based in San Ramon, Calif., said severance charges are expected to range between $150 million and $200 million on an after-tax basis in the first quarter.The company has about 60,000 employees worldwide, including about 17,000 in downstream operations that include refining, marketing and retail operations. It laid off 1,900 employees in downstream operations last year.Shares of Chevron fell 4 cents to $74.60 in midday trading Tuesday. http://www.oilweek.com/news.asp?ID=27175 CALGARY _ NuVista Energy Ltd. said Tuesday it will continue to pursue acquisition opportunities in the current fiscal year despite disappointing fourth-quarter and full-year profits due to lower revenues.The Calgary-based oil and gas producer said net income for the October-December period was $10.5 million or 12 cents a share, down nearly 60 per cent from $24.4 million or 31 cents in the same 2008 period.NuVista (TSX:NVA) saw its production revenue for the quarter fall to $96 million from $107 million due to lower commodity prices. It produced 28,345 barrels of oil equivalent per day in the quarter, up from 25,688 barrels the previous year.For all of last year, it produced 26,958 boe per day versus 24,320 boe in 2008.Full-year earnings were $2.5 million or three cents a share, down from $88.2 million or $1.18 a share in 2008. Production revenue totalled $345.3 million versus $515.3 million.For 2010, our base capital program is primarily focused on exploration and development activities, however, we will continue to pursue acquisition opportunities in what is expected to be an active mergers and acquisitions market, NuVista said in a release.In June, the company acquired some properties in the Martin Creek area of northern British Columbia and in northwest Alberta for about $176 million.NuVista shares were off 28 cents at $13.52 in midday trading Tuesday on the Toronto Stock Exchange. http://www.oilweek.com/news.asp?ID=27174 WINNIPEG _ The Manitoba and Saskatchewan governments have agreed to more than double the capacity of the power grid that connects the two provinces.Saskatchewan Energy Minister Bill Boyd says a preliminary deal has been signed that will eventually see new transmission lines and other infrastructure built, so that power can flow either way _ depending on demand.The aim is to add 150 megawatts _ enough electricity to power 150,000 homes _ to the grid`s current capacity of 105 megawatts.Boyd says Saskatchewan needs to strengthen its energy supply because of the province`s growing population and economy.Manitoba Hydro Minister Rosann Wowchuk says the extra power could also help in the event of a shortage caused by a storm or drought.The provinces still have to work out details such as when the power grid can be completed and how much it will cost. http://www.oilweek.com/news.asp?ID=27173 NEW YORK _ Oil prices reversed a two-day rally and fell sharply on Tuesday, driven by a stronger U.S. dollar, a lacklustre stock market and rising crude supplies.Benchmark crude for April delivery fell 81 cents to $81.06 per barrel on the New York Mercantile Exchange. Earlier, oil dropped as low as $80.16. Crude has risen steadily over the last two trading sessions and has gained 18 per cent over the past month amid signs the U.S. economy is emerging from last year`s recession.Those gains were trimmed Tuesday as news from Europe and China bolstered the dollar, making crude more expensive for investors holding foreign currencies.Tradition Energy analyst Addison Armstrong said the dollar strengthened against the euro ahead of talks between President Barack Obama and the Prime Minister of Greece, which has been reeling from financial turmoil.Phil Flynn of PFGBest said reports that China may stop tying its currency to the dollar gave a boost to the greenback, helping to bring inflated oil back down to earth.Investors are also awaiting reports from the Energy Information Administration for signs of better oil demand. The EIA releases its monthly short-term energy outlook at noon today. On Wednesday EIA will report its weekly petroleum inventory data. Armstrong expects a sixth consecutive increase in crude stockpiles.Retail gasoline prices climbed again ahead of the heavier driving spring and summer seasons. The nationwide average for gasoline rose 0.6 cents Tuesday to $2.759 per gallon, topping the 2010 high of $2.7583 per gallon reached on Jan. 14, according to AAA, Wright Express and Oil Price Information Service.Prices have risen 10.2 cents in the last month and are now 81.4 cents higher than levels of a year ago.In other Nymex trading, heating oil fell 2.07 cents to $2.0848 a gallon, and gasoline dropped 3.90 cents to $2.2502 a gallon. Natural gas lost 0.8 cent at $4.519 per 1,000 cubic feet.In London, Brent crude was down 92 cents at $79.53 on the ICE futures exchange.___(TSX:ECA), (TSX:IMO), (TSX:SU), (TSX:HSE), (NYSE:BP), (NYSE:COP), (NYSE:XOM), (NYSE:CVX), (TSX:CNQ), (TSX:TLM), (TSX:COS.UN), (TSX:CVE) http://www.oilweek.com/news.asp?ID=27172 TORONTO _ The Toronto stock market found it hard to gain traction Tuesday as commodity prices fell and a better than expected earnings report from Scotiabank (TSX:BNS) failed to encourage buyers.The S&P/TSX composite index dropped 36 points to 11,927.8.The Canadian dollar rose 0.14 of a cent at 97.45 cents US, approaching the highest level for the year.Scotiabank turned in a first-quarter profit of $988-million, up 17 per cent from a year earlier. Scotiabank said that was the equivalent of 93 cents on a cash basis, five cents a share better than analysts had forecast. Revenue came in at $3.9 billion, also above expectations.Provisions for credit losses were $371 million, down from $420 million in the prior quarter and its shares were down 37 cents at $49.73. However, its shares have risen over the past week as other banks` earnings reports lifted financials.Scotiabank was the last of the big banks to report quarterly earnings. All save Royal Bank (TSX:RY) handed in earnings that beat analyst expectations.Canada`s five biggest banks saw their profits soar in the first quarter compared to a year before when the recession battered away at earnings, raking in a combined $5.09 billion.For the first quarter, one of the standouts was the retail and commercial banking, said John Kinsey, portfolio manager at Caldwell Securities.That is sort of the nuts and bolts of their business (and) for most of them, the loan loss provisions were down. So those two things put together make a good case for recovery in the Canadian economy.Crude prices fell back after rising about 15 per cent over the last month on hopes for rising demand. The April oil contract on the New York Mercantile Exchange was down 89 cents to US$80.98 a barrel and the energy sector pulled back 0.4 per cent. Suncor Energy (TSX:SU) declined 58 cents to $31.45.The gold sector was down 1.13 per cent as a stronger U.S. dollar helped send the April gold contract on the Nymex $7.80 lower to US$1,116.20 an ounce. On the TSX, Barrick Gold Corp. (TSX:ABX) dropped 35 cents to $49.49 while Kinross Gold Corp. (TSX:K) faded 18 cents to C$19.18.The base metals sector eased 0.8 per cent as May copper slipped a penny to US$3.40 a pound. Teck Resources (TSX:TCK.B) was down 66 cents to C$40.91.The tech sector was supportive with Research In Motion Ltd. (TSX:RIM) up 70 cents to $76.18. The stock was up about five per cent Monday after BMO Capital Markets upgraded the BlackBerry maker to outperform from market perform.The cautious trading on markets Tuesday came 12 months after the market hit bottom in the depths of the financial crisis, which was sparked by the collapse of the U.S. housing sector. Stocks have surged since hitting multi-year lows on March 9 of last year, with the turnaround starting a day later when U.S. bank Citigroup said it was turning a profit.Since then, evidence of so-called green shoots and signs of a tentative recovery have sent indexes surging. The S&P/TSX composite is up 58 per cent from a year ago, while the Dow Jones industrial average is ahead 61.2 per cent.But the markets have found it harder to gain traction since the beginning of this year as investor expectations have grown, while stocks are seen as more fairly valued now. That means it will take more than just an occasional upbeat economic report or earnings release to send stocks higher.Things turned out an awful lot better than we had thought, added Kinsey.Most of the good news is out. I think what we`re hoping for this year is that we will have modest, but kind of steady growth.The TSX Venture Exchange moved 4.07 points lower to 1,557.86.New York`s Dow Jones industrials climbed 15.3 points to 10,567.8.The Nasdaq composite index gained 6.8 points to 2,338.75 while the S&P 500 index was up 1.65 points to 1,140.15.In other corporate news, Bombardier Inc. (TSX:BBD.B) has cancelled a plan to buy back up to US$550 million of its outstanding debt securities and issue new notes. The transportation giant said that current market conditions are such that the offering is unattractive and unsatisfactory to Bombardier at this time. Its shares were down 23 cents to $5.86.Major Drilling Group International Inc. (TSX:MDI) shares were down 93 cents to $26.99 as the company narrowed its fiscal 2010 third-quarter loss to $4.5 million or 19 cents a share from $5.1 million or 21 cents in the comparable 2009 period. Revenue for the three months ended Jan. 31 was $72.5 million, down from $87.4 million the previous year.In Asia, Tokyo`s Nikkei 225 stock average fell 0.2 per cent while Hong Kong`s Hang Seng added per cent.London`s FTSE 100 inched up 0.03 per cent, Frankfurt`s DAX rose 0.18 per cent while the Paris CAC 40 was up 0.16 per cent. http://www.oilweek.com/news.asp?ID=27171 DETROIT _ Chevron Corp. (NYSE:CVX) says it will cut 2,000 jobs this year and will continue reducing its work force through 2011.The nation`s second-largest oil producer revealed the cuts as it outlined corporate strategy and major capital projects Tuesday in a meeting with financial analysts in New York.California-based Chevron says its oil refining market conditions will be difficult for the next several years, so it plans to reduce costs and capital spending, improve efficiency and simplify its organization.Chevron also says it will concentrate its refining business in its North American and Asia-Pacific markets where it has the greatest competitive strength.CEO John Watson says in a statement that Chevron is poised for another decade of growth. The company expects to shift its portfolio toward natural gas and Asia.Chevron has growing operations in Canada, where it is a minority partner in the Athabasca oilsands project in northern Alberta, a project operated by Shell Canada and which includes Marathon Oil Corp. It also owns a 75-year-old refinery in suburban Vancouver, where it refines diesel and gasoline to supply its gas station network in British Columbia and Alberta. http://www.oilweek.com/news.asp?ID=27170 TORONTO _ Drilling company Foraco International SA (TSX:FAR) announced Tuesday it plans to acquire Chile-based Adviser Drilling SA in an effort to expand its global presence.The multi-faceted deal will see Foraco pay $5.5 million in cash plus 14.9 million shares, valued at approximately $41 million based on Monday`s closing price of $2.75 per share on the Toronto stock exchange.In addition, Foraco will provide up to 4.8 million warrants which would allow Adviser to either purchase further Foraco shares or claim an additional cash payment of approximately $9.7 million after two years.The total price could be adjusted by up to $5.5 million depending on Adviser`s 2010 financial performance, Foraco said.The deal, which is still subject to shareholder approval, is slated to close in May.Adviser`s current management team will continue to run the company`s day-to-day operations.This is a major step forward for Foraco to continue building a world class drilling services company, Foraco chief executive Daniel Simoncini said in a statement.This acquisition will allow us to improve significantly our global range of services offered to our Customers and will develop significant business synergies in the near future.Adviser`s management described the deal as a way to tap into new market opportunities while expanding its existing customer base in Central and South America.Foraco`s excellent reputation, strong financial performances and impressive diversified assets base have convinced Adviser shareholders to join the Foraco group as the best solution to maximize shareholder value in the future, said Adviser chairman Jorge Hurtado.Foraco is a global drilling services company with operations in 19 countries. The company provides services for energy, mining, water and infrastructure projects.Shares in the company were up two cents at $2.77 in morning trading on the Toronto stock market. http://www.oilweek.com/news.asp?ID=27169