Canada does NOT support pipeline.

[D suzuki]

thats right dexter funny huh?

[twobits]

We are currently discounting oil for US refineries to the tune of about 50$ a barrel. Unless the US has competition for our oil we will continue to give it away at subsidized rates. This makes no sense at all and from what I understand, much of the money used in the anti pipeline propaganda is coming from these very US refining companies.

LOL.....discounting $50 a barrel to the americans. Source please!!!

[twobits]

sorry but i disagree , the gulf disaster wasnt properly handled , if you think it was, then go talk to the people that live down there, the fishing industry brings in more to bc , than any royalty, which no oil company will pay any ways lol dream on

And you think an uncontrolled rupture a mile below the ocean surface is a valid comparison to an overland pipeline route that will shut off within minutes of a pressure drop only allowing the oil that is in the pipe to gravity drain until it stops running itself. The volumes we are talking about are several magnitudes apart in completely different applications. Pure fear mongering. Smoke another bowl.

[NAB]

"...Alberta bitumen sells into the U.S. Midwest at $10 to $20 a barrel less than the world price for oil, partly because a glut of oil there is pushing the price down."

http://www.globalnews.ca/alberta+oil/64 ... story.html

[Poindexter]

LOL.....discounting $50 a barrel to the americans. Source please!!!

My source is actually from the horses mouth. At a dinner party about 3 weeks ago with an old friend of my parents who's son is a senior manager in an oil company advised me what's going on. He told me we were selling for as low as 30$ a barrel. Can't find anything in print but it doesn't shock me that we aren't getting the whole story. Even this article says world prices were as high as 125$ a barrel at the time and we were selling it to them at 75$.

http://blogs.vancouversun.com/2012/03/2 ... -a-barrel/

[NAB]

That's "heavy oil" - the junk stuff that so many refineries are still not able to handle so won't buy at any price. The one's that can are oversupplied.

Nab

[Rwede]

sorry but i disagree , the gulf disaster wasnt properly handled , if you think it was, then go talk to the people that live down there, the fishing industry brings in more to bc , than any royalty, which no oil company will pay any ways lol dream on

Oil & gas royalties are the largest source of revenue of any industrial activity for the BC government. But yeah, I guess no oil company is paying them anyway, according to you. :137:

[Rwede]

removed - Jennylives

[NAB]

""This applies to conventional heavy oil in Alberta as much as it does to production in Saskatchewan. In today’s market, the commodity is sizzling, and the explanation lies in increased access to North American markets and declining imports of heavy Mexican and Venezuelan crudes into the United States, where refineries have been increasing their ability to process heavier oils. The result is record light-heavy differentials that have heavy oil producers smiling in the expectation that they are here to stay for some time.

Three years ago, producers had to contend with 42 per cent differentials, but since then the spread has steadily narrowed, averaging 28 per cent in 2008, about 17 per cent in 2009, and 13 per cent in January of this year, says Kevin Gibson, president and chief executive officer of Palliser Oil & Gas, which is involved in about five different heavy oil areas in the Greater Lloydminster area. “Heavy oil is almost priced the same as light oil now.”

In January, Flint Hills/Lloyd Blend gained more than $7 per barrel to an average of $72.30 per barrel with a differential of $6.71 per barrel, while another heavy benchmark, Bow River crude, averaged $73.30 per barrel with a differential of $6.40 per barrel.

In a report last year, analysts at Peters & Co. concluded that at US$69 per barrel, Lloydminster vertical wells were the most economic play in the Western Canadian Sedimentary Basin, with a 112 per cent rate of return on finding and development (F&D) costs.

For Alberta and Saskatchewan, the current market for conventional heavy oil is a bit like a winery selling this year’s plonk for 13 per cent less than a vintage wine. Like plonk compared to fine wine, heavy oil is intrinsically less valuable than Edmonton Par, the Canadian standard for light oil. In most refineries, after all, heavy feedstock results in less high-value-added gasoline and more low-value-added asphalt.""

http://www.swiftcurrentonline.com/index ... Itemid=185

[Poindexter]

[
removed - Jennylives

removed - Jennylives

How about you just read the article then, the prices are old but 125$/barrel in world markets vs 75$/barrel the US was paying. The pipeline will give Alberta oil access to world markets. Doesn't take a genius to know putting all your eggs in one basket or barrel so to speak doesn't make sense.

Thanks Nab, didn't consider the different grade of oil but good to see that gap in price is trending in a favourable direction.

[NAB]

Thanks Nab, didn't consider the different grade of oil but good to see that gap in price is trending in a favourable direction.

You're welcome. As more and more refineries upgrade their ability to process heavy oil (most particularly with respect to getting rid of its sulphur content which should be a huge concern with those driving modern vehicles vs vs choosing where they buy their fuel) that trend should continue. But upgrading old refineries doesn't come cheap, or even fast. Take a lot of care when travelling as to the fuel you are getting - particularly if running a newer diesel, ...even moreso across the line.

Nab