West East Canadian Pipeline Confirmed
- Thread starter captain morgan
- Start date
I must repeat.........
This is good news.
Now that we will have the West-East Pipeline in Canada we will see jobs created and prices at the pump go down............
I wouldn't think that an explanation would be required, but, obviously it is.
Note the 2 gentlemen pissing their pants laughing. This was obviously posted to show that the preceding statement was facetious and far from factual.
OK, that makes it 'win' 'win'..:lol:
Cooper's a pundit, not an expert. The 'heavy glut' at Henry hub lowers ( in theory)
consumer fuel prices in the US Midwest.
I would disagree... The bottle neck at Henry Hub restricts supply to a consistent demand.
Regardless, Cooper's comment that Que and NB won't have to source offshore crude from the Brent market bodes well for seeing lower gas prices in the East.
That's not a disagreement , that is a rewording.
choose your weapon, sir....:lol:
I'm saying that this bottle neck may have upwards pressure on prices (as compared to no glut and higher outputs)
Alberta heavy crude trades at a 20- 40%
discount at Cushing, compared to Brent .
NEB - Energy Reports - Canadian Energy Overview 2007 - Energy Market Assessment
Ideally, a 'superrinery ' should be built form scratch to handle heavy crude.
http://events.gtforum.com/digital_assets/7197/Tuesday_1045_Nicolas_Thevenot.pdf.
Alberta and Edmonton Select trade at a discount to WTI (even accounting for the grading differences). Opening the markets to the East (Europe/India) will reflect in a stronger price there as it will be graded against Brent and in NorAm, that event will (likely) translate into a stronger benchmark against WTI
Where I see an additional opportunity is in the refining and perto-chemical business that can be developed in Canada, like you mention, a heavy refinery will have to be developed... At any point along the p/l, a facility can be constructed to accommodate this market
Where I see an additional opportunity is in the refining and perto-chemical business that can be developed in Canada, like you mention, a heavy refinery will have to be developed... At any point along the p/l, a facility can be constructed to accommodate this market
Should? We have three in Regina (2 upgraders 1 refinery). One upgrader sits idle while the other and refinery run at 40% of capacity.
Then there is another heavy oil upgrader in Lloydminster running at 30% capacity.
Last edited:
Your refineries aren't in Ontario or Quebec, so they don't count
And they don't use French supplied nuclear reactors, so they are Obsolete
Check which prairie city the transcanada line runs through and where it starts. You'll get a bigger picture. This line is a SK heavy oil line. No bitumen from "oil sands". If the news knows only AB and oil sands, the news needs to be shot.Your refineries aren't in Ontario or Quebec, so they don't count
And they don't use French supplied nuclear reactors, so they are Obsolete
Yeah, that's kind'a what I'm seeing as the potential benefit here... getting the crude into the hands of Canadian refineries so they can be the ones to be selling to whoever the value-added refined products.
Of course that's a bit hyperthetical if Canadians don't own the refineries, in which case it's just a few extra jobs for Canadian refinery workers, but there should be another spin-off.
Specifically, it gets the crude to refineries that are closer to Montrael, and although most people know that refined petroleum products are the building-blocks of everything from plastics to paints to medicines, what they tend to forget or not know is that 80% of Canada's chemical industry is around Montreal (meaning, if you're a Chem major and you want to stay in Canada, you'd better learn French and get used to poutine).
If the Canadian chemical industry can get access to refined products at even a slightly cheeper price, they can make cheeper plastics, paints, and medicines.
The cheeper plastics go off to China for toy-production (or maybe to native reserves, where their tax-free status should, theoretically, enable them to compete with China), the cheeper paints get splashed everywhere, and the cheeper medicines tick-off Swiss and Americans even more than they are already about Canada's affordable pharmaceuticals.
Canadians have been watching the US collapse because the yanks let their manufacturing sector go, therefore Canada should be learning-by-example that keeping Canadian manufacturing in-country while maintaining competativness under the burdens of free-trade is a good thing, and the simple fact is, most manufacturing is still back east.
Actually, they have and done.
I know a few cases where Canadian petrochemical companies bought-out US refineries, but then turned around and sold them off a couple years later, and you're never going to believe what one of the biggest heaches causing them to do so was...
It was that in Canada they were accustomed to hiring in a mixed-shop environment, meaning a combination of unionized and non-unionized workers.
For some jobs, like maintenance workers and secretaries, it made more sense to hire unionized workers, because having them be unionized simplified things, like explaining to them how much they were going to be paid, and when they got lunch breaks, and could take vacations, whereas for other positions, like accountantants and IT, it made more sense to hire non-union workers, otherwise it would be like trying to herd cats.
In some states, they found themselves dealing with situations where the locals demanded a plant to be 100% unionized, while in others the locals demanded it be 100% non-unionized, and it was too frustrating for the Canadian managers, so they'd sell of and go back north.
Last edited:
In Canada it's irrelevant. But in the US, some states make it *very* relevant, which is why Canadian petrochemical companies would rather operate refineries in Ontario and Quebec than in the deep south.
You stated: "Tell me why a Canadian Companies like Potash Corp or CO-OP Refineries SHOULD NOT set up shop and production of a full line of salt and petrochemical based agricultural products on the gulf coast at the bottom of the Mississippi watershed instead of on top of it?", and so I answered.
It's part of the reason why Canadian refinery management would rather operate a plant in Ontario or Quebec rather than buy a plant in the southern US and pipe the crude south to be refined there.