Trudeau must fight for Keystone like he did for aluminum

[Twin_Moose]

There are 2 sources of light crude and 2 areas it is sourced from a third is trying to get developed but cannot find funding in todays environment. East central Sask. is estimated to have over a Billion barrels of reserve of light crude waiting to be extracted.

Do you know where the first place Canada drilled for Oil was? It wasn't Leduc, it's in an area that was abandoned due to geographic location and politics at the time. There is a large pool of light Oil there to this day.

 

[petros]

There are 2 sources of light crude and 2 areas it is sourced from a third is trying to get developed but cannot find funding in todays environment. East central Sask. is estimated to have over a Billion barrels of reserve of light crude waiting to be extracted.

Do you know where the first place Canada drilled for Oil was? It wasn't Leduc, it's in an area that was abandoned due to geographic location and politics at the time. There is a large pool of light Oil there to this day.

Thank you Commie Douglas

WCS isnt straight oil sands either. WTI is the bench mark Canada goes by.

 

[Nick Danger]

WCS isnt straight oil sands either. WTI is the bench mark Canada goes by.

Not exactly accurate. WTI is an American benchmark for American light crude oil. WCS is a Canadian benchmark for heavy crude oil made made up of dliuted bitumen and lighter synthetic crude or upgraded bitumen. What is of concern to Canada is the price difference between the two benchmarks, which more and more has favoured the American refineries that upgrade the diluted bitumen. The lion's share of Canadian oil exports to the US are WCS, over 80%. Our frustration in getting our oil to markets other than the US is rooted in pipeline politics. Alberta has the production capacity to offset foreign imports into eastern Canada. Alberta's products could fetch a better price on the global market than they get from the US. Certainly plenty of room for head scratching there.

 

[Danbones]

Trudeau considers Canada to be a post national country, so what he is actually fighting is Canadians.

 

[Twin_Moose]

Thank you Commie Douglas

WCS isnt straight oil sands either. WTI is the bench mark Canada goes by.

Yep therefore the discounts, Brent is an unfair man somedays Lol, on a side note I was talking to one of your farm neighbors a month or so ago, he was saying they are about to sign an Oil deal for North of us and along the valley for you. Interesting

The neighbor I mentioned they have a symbolic cabin in the Pee Paw plains for our clarification on why they are able to sign the deal for North of me

 

[petros]

Not exactly accurate. WTI is an American benchmark for American light crude oil. WCS is a Canadian benchmark for heavy crude oil made made up of dliuted bitumen and lighter synthetic crude or upgraded bitumen. What is of concern to Canada is the price difference between the two benchmarks, which more and more has favoured the American refineries that upgrade the diluted bitumen. The lion's share of Canadian oil exports to the US are WCS, over 80%. Our frustration in getting our oil to markets other than the US is rooted in pipeline politics. Alberta has the production capacity to offset foreign imports into eastern Canada. Alberta's products could fetch a better price on the global market than they get from the US. Certainly plenty of room for head scratching there.

Learn what heavy oil is then try again.

Heavy oil isnt bitumen and bitumen isnt heavy oil.

Keep trying.

 

[Nick Danger]

Learn what heavy oil is then try again.
Heavy oil isnt bitumen and bitumen isnt heavy oil.

Bite me farm boy

Bitumen and synthetic crude (upgraded bitumen) account for most of our exports to the US by a huge margin, and that's what we're talking about here.

 

[Nick Danger]

"Western Canadian Select is Canada's largest heavy crude oil stream, comprised of bitumen, conventional oil, synthetic crude and condensate. Learn more about this unique benchmark crude produced exclusively in Western Canada."

Western Canada Select Explained

 

[petros]

Yep therefore the discounts, Brent is an unfair man somedays Lol, on a side note I was talking to one of your farm neighbors a month or so ago, he was saying they are about to sign an Oil deal for North of us and along the valley for you. Interesting

The neighbor I mentioned they have a symbolic cabin in the Pee Paw plains for our clarification on why they are able to sign the deal for North of me

Possibly. Assinoboine Valley is not under the grips of potash turf although there is SFA stopping PCS or Mosaic or even CPR or CNR from exploration.

 

[petros]

Bite me farm boy

Bitumen and synthetic crude (upgraded bitumen) account for most of our exports to the US by a huge margin, and that's what we're talking about here.

We are? You were babbling about heavy oil fruit packer.

 

[petros]

"Western Canadian Select is Canada's largest heavy crude oil stream, comprised of bitumen, conventional oil, synthetic crude and condensate. Learn more about this unique benchmark crude produced exclusively in Western Canada."

Western Canada Select Explained

Heavy crude oil

Description​

Heavy crude oil is highly-viscous oil that cannot easily flow to production wells under normal reservoir conditions. It is referred to as "heavy" because its density or specific gravity is higher than that of light crude oil. Heavy crude oil has been defined as any liquid petroleum with an API gravity less than 20°

Bitumen is 40 to 80°

 

[Nick Danger]

We are? You were babbling about heavy oil fruit packer.

WCS is a heavy oil stream. The topic is the Keystone XL which carries WCS more than anything else. My suggestion was that Trudeau would be better spending his time fighting for TMX completion or a revival of Energy East than starting a scrap over Keystone XL. Keystone XL would just add to the stranglehold the US has on our oil industry.

 

[petros]

Explain why AB and SK use WTI for their budget benchmarks?

While the Alberta government reduced overall spending by 2.8 per cent, the budget tabled last Thursday still relies on an anticipated 38 per cent increase in energy royalties as both oil production and pipeline capacity expand. The province set its WTI estimate at US$58 in Budget 2020.


Markets & Investment   Oil & Gas   Regulatory

Saskatchewan budget based on US$59.75 WTI​

By Brian Zinchuk, Pipeline News
Friday, March 22, 2019, 7:23 AM MDT
Regina – The Saskatchewan budget isn’t betting on an improvement in oil prices for this year.
In its key assumptions, the March 20 budget projects the benchmark West Texas Intermediate (WTI) oil price at US$59.75 per barrel, with total oil and natural gas royalties at $691.1 million.

 

[petros]

WCS is a heavy oil stream. The topic is the Keystone XL which carries WCS more than anything else. My suggestion was that Trudeau would be better spending his time fighting for TMX completion or a revival of Energy East than starting a scrap over Keystone XL. Keystone XL would just add to the stranglehold the US has on our oil industry.

How does a pipeline that doesnt exist carry oil in any grade?

Fresh fruit?

 

[Nick Danger]

Explain why AB and SK use WTI for their budget benchmarks?

Excellent question, since a small portion of Canadian exports to the US fall into a grade anywhere near WTI. The closest we have in terms of quality is Canadian Light Sweet. In 2019 Canadian exports for light crude vs heavy crude from all sources were only 24% of total. So yeah, good question as to why budgets would be based on that benchmark. A little government window dressing perhaps?

How does a pipeline that doesnt exist carry oil in any grade?

Sorry, you're right, that should have read "will" carry. Or perhaps more accurately "would have carried" had Biden not won the election. The current Keystone Pipeline carries oil east to Manitoba and then south towards the pipeline hub at Cushing Oklahoma. The Keystone XL would have taken a more direct route southeast from Hardisty, Alberta. Had it been completed it would have added another half million barrels per day capacity to Alberta's exports to the US.

 

[petros]

It's not baffling why they use WTI.

End use.

Keystone and future KXL dont only carry Albertan oil.

 

[Nick Danger]

Keystone and future KXL dont only carry Albertan oil.

I never said they did. I said "mostly". Which just happens to be mostly oilsands products.

 

[Nick Danger]

It's not baffling why they use WTI.

It was to me, but when I snooped around a bit I found that both WCS and WTI prices are often quoted together, the differential being a major sticking point to Canadian producers. It's my guess that when you see just the WTI price being quoted they aren't including WCS exports for some reason. Applying the WTI benchmark to all of Canada's oil exports would be misleading.

 

[petros]

It was to me, but when I snooped around a bit I found that both WCS and WTI prices are often quoted together, the differential being a major sticking point to Canadian producers. It's my guess that when you see just the WTI price being quoted they aren't including WCS exports for some reason. Applying the WTI benchmark to all of Canada's oil exports would be misleading.

Pipelines to Eastern Canada or piped and shipped to Asia wont up the value of WCS at all against WTI. The "US stranglehold" as you say isnt the the system of delivery. We simply dont have the upgrading and refining capacity or petrochemical industry to add value.

Imagine the political shit show of trying to build the upgrading and refining capacity.

Nobody is willing to invest in a freak and weirdo circus side show of a country.

We do get WTI rates for our light crude BTW and it's not insignificant amounts.

 

[Twin_Moose]

Excellent question, since a small portion of Canadian exports to the US fall into a grade anywhere near WTI. The closest we have in terms of quality is Canadian Light Sweet. In 2019 Canadian exports for light crude vs heavy crude from all sources were only 24% of total. So yeah, good question as to why budgets would be based on that benchmark. A little government window dressing perhaps?

Sorry, you're right, that should have read "will" carry. Or perhaps more accurately "would have carried" had Biden not won the election. The current Keystone Pipeline carries oil east to Manitoba and then south towards the pipeline hub at Cushing Oklahoma. The Keystone XL would have taken a more direct route southeast from Hardisty, Alberta. Had it been completed it would have added another half million barrels per day capacity to Alberta's exports to the US.

Who does KXL have the export contract with? That's the only way you will know what they intended to pump

The largest tank farm in Hardisty belongs to Husky and Husky is mainly heavy crude, their Bitumen comes down Enbridge pipes.

My bet will be on Husky having the largest contract to export their NW & NE heavy oil product coming from Lloyd. and Cold lake coming in on their own & IPL pipelines. IPL right now stays with Alberta borders so they don't have to deal with the NEB