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Thursday, November 1, 2018

The Market, Energy, And Political Page, Part 2, T+80 -- November 1, 2018

Canadian producers turning to oil trucks: Bloomberg. Data points:
  • phenomenon has been noted for about three to four months
  • 500 miles by truck for Canadian producers to get oil to pipeline and rail terminals
  • most notable increase in truck traffic seen in Saskatchewan 
  • WCS selling for as much as $52.40 less than WTI -- the biggest spread/discount since 2008
  • August: 230,000 bbls by truck
  • a typical truck: 250 bbls of oil
  • cost, for 500 miles: $30/bbl one way if the tanker returns empty
  • Enbridge Line 3 expansion won't be completed by late next year (very, very iffy, in my mind)
  • record CBR: 230,000 bopd
  • constraints worsened when BNSF required more secure, hard-to-obtain tanker cars
  • impact on Bakken oil 
Canadian producers turning to US shale: Encana buys Newfield Exploration.

McDermott to sell storage tank and pipe business: Rigzone.

NuStar: to exit Europe; will sell storage terminals to Inter Terminals Ltd. I would not have posted this except for the fact we have a huge NuStar storage facility in our "neighborhood" here in north Texas.

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