Trudeau's response: "I look up as I walk so the tears won't fall."
The story from Zacks: dearth of pipeline capacity plagues Canadian oil producers.
The new supply, which has arrived in the market from the start up of new oil sands, is facing transportation issues as Keystone pipeline lowered shipments in November 2017, thanks to a spill.
This has pushed the heavy Canadian crude prices to trade close to the largest discount to U.S. benchmark oil futures in more than four years [around $30 -- ouch]. Other existing pipelines are fully committed, while exporters shipping crude using rail have faced hindrances amid excess grain that is to be transported.
The heavy discount between Canadian crude prices and futures has forced the oil sands players to shut their plants this month for maintenance. For instance, Canadian Natural Resources’ Peace River oil sands site is currently under maintenance. Moreover, it has also reduced its pace of the ramp up and completion of some wells.
Per industry researcher Genscape Inc., Western Canadian crude production was more than the pipeline capacity to transfer it to markets by 87,000 barrels per day (bpd) in December 2017. This is expected to grow to 338,000 bpd by the end of 2018.
No comments:
Post a Comment