In a monumental shift for the energy markets, China recently became a bigger oil importer than America. The U.S. is switching to more fuel efficient cars and driving less, while China's per capita GDP continues to grow and spur more demand for oil. The world's oil consumption is shifting, and smart investors are helping bring oil to Asia.
Canada's oil producers are facing a smaller U.S. market, and the next logical place to turn is Asia. The problem is that oil sands producers are separated from B.C.'s ports by the Rocky Mountains. A number of new pipelines are on the drawing boards, but the permitting process takes a number of years. For the immediate future railroads will provide the critical link between the Canadian interior and the coast.
West Coast refiner Tesoro has positive news for investors. The Port of Vancouver recently approved Tesoro's rail offloading oil terminal with an initial capacity of 120 thousand barrel per day (mbpd). It will allow cheaper land-locked crudes be used as feedstock for Tesoro's refineries. The facility is not expected to be completed until 2014, but it is a positive catalyst for the company. While the facility calls for the transport of Bakken crude from North Dakota, there is no reason why Canadian crudes could not be transported as well.For investors, there are a lot of other ideas at the linked story.
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As long as we've linked one Motley Fool story, we might as well link another: can Chesapeake Energy beat COP and EOG to big profits? I didn't read the article and I did not care. This is the real story, and I'm sure Motley Fool did not even mention it: look how big EOG has gotten. EOG sold for less than $10/share in 2000. EOG is now close to $200/share.
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