Pressure To Build Another Pipeline: Canada's Alberta Sands Oil to California

Two weeks ago I did not even know what WCS stood for ... now, I see it everywhere.

RBN Energy has a very, very interesting story this morning. It begins with this lede:

The pipelines transporting Western Canadian crude oil to US markets are full to overflowing. Space on the main lines is being rationed. As much as 250 Mb/d of new production is expected online during 2013. The price of Western Canadian Select heavy crude fell to nearly $40 under NYMEX WTI during the first week of January 2013. The pressure is on to build new takeaway capacity to Canada’s west coast. Today we look at the Trans Mountain Pipeline expansion project.

Bakken mineral rights owners are very, very aware of what happens to the price of oil when it's landlocked. Bakken oil was taking a $30 discount due to lack of takeaway capacity not too long ago.

For Canadian oil sands it deja vu all over again: Western Canadian Select is being priced at a $40 discount.

There is pressure to build another pipeline. This time, from Canada to California. This is even better than more solar panels and more wind turbines.

Another great post from RBN Energy; must read; great graphics including a great map.