One Well Coming Off Confidential Today -- September 6, 2023

Locator: 45536B.  

WTI: $86.31.

Wednesday, September 6, 2023: 66 for the month; 268 for the quarter, 513 for the year
39614, conf, Kraken, Gladys 29-20-17 4H,

Tuesday, September 5, 2023: 65 for the month; 267 for the quarter, 512 for the year
39295, conf, Slawson, Banshee 3-1H,
39032, conf, Liberty Resources, McGinnity 159-95-31-30-10MBH,
37929, conf, BR, Parrish 3A TFH,
37473, conf, SOGC (Sinclair), Saetz Federal 2-36H,
36573, conf, Hess, EN-Kiesel-155-94-1918H-6,

RBN Energy: Canadian crude "re-exports" from the USGC surge on pipeline access, overseas demand.

For many years now, the U.S. has been buying — and piping or railing in — virtually all of the crude oil Canada has been exporting, in part because Canadian producers have only very limited access to coastal ports. More recently, greater pipeline access from the Alberta oil sands to the U.S. Gulf Coast (USGC) has created an attractive pathway — a “Carefree Highway,” if you will — for Canadian crude oil to be “re-exported” to overseas customers. This year, much stronger international demand has sent re-export volumes to record highs — and provided Alberta producers very attractive price differentials for their oil sands crude. That overseas demand appears to be sustainable, but with the looming startup of the 590-Mb/d Trans Mountain Expansion Project (TMX), which will increase the capacity of the Trans Mountain Pipeline system to 890 Mb/d and enable much more Alberta crude to be exported from docks in British Columbia, the re-export surge from the USGC may be in for a pullback, as we discuss in today’s RBN blog.

It looks like Canada’s crude oil exports are finally showing off their stuff and stepping out on the town. For a couple of decades, the U.S. has been the overwhelmingly dominant buyer of Canada’s crude oil exports, funneling millions of barrels per day into Midwest refineries and, in recent years, sending more down to refineries in the Gulf Coast region. In the past couple of years — and most especially this year — this near-exclusive export relationship has finally begun to diversify from the standpoint of Canadian producers, who have been finding other customers in increasing quantities in overseas markets.