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The price of Canadian crude just went up.

Discussion in 'Off Topic' started by Bigfoot, Apr 5, 2012.

  1. Bigfoot

    Bigfoot Clack Co. OR Well-Known Member

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    The US had a monopoly on Canadian crude so we got it at a price lower than the international rate. Harper doesn't like bowing to the whims of a single customer (Keystone delay) so he's going ahead with the Asia pipeline and we'll have to compete with China. No more discounted oil for the US.

    Don't expect to see this story on the evening news.

    Sun News : Harper determined to get Canadian oil to Asia

     
  2. John H

    John H Whatcom County Well-Known Member

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  3. Bigfoot

    Bigfoot Clack Co. OR Well-Known Member

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    We export refined fuels. For example, Europe has many diesel cars so we refine the crude, keep most of the gasoline for domestic use and export much of the diesel there.

    Venezuela crude is very similar in composition to the Canadian Oil Sands crude. We refine it on the gulf and sell much of the gas here (CITCO) and sell some, and other refined fuels on the international market. Wouldn't it be better to do business with Canada rather than Chavez?

    The argument that we wouldn't profit from Canadian crude and that we wouldn't get the market advantage of the additional supply is false.

    Edit: John H I might have misread your post. I'll leave this out here because someone will come along and say that the Keystone pipeline crude would go straight to China.
     
  4. John H

    John H Whatcom County Well-Known Member

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    Are you saying it won't go to China??
     
  5. Bigfoot

    Bigfoot Clack Co. OR Well-Known Member

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    If by "it" you mean all of it then I say no. Yes some crude will go straight to China, but even then we will benefit from it in several ways.

    The Gulf Coast refineries that were built to refine the heavy Venezuela crude are running under capacity. It takes several years and billions in investment to convert a refinery to use heavy crude that's why even the Canadians won't do it in this decade. If the oil goes through the gulf as much as possible will be refined there.

    Exporting refined fuels helps our balance sheet.
     
  6. ATCclears

    ATCclears Seattle area, WA Well-Known Member

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    I've been tracking this issue for a while since I'm originally from BC/Canada and I still have many friends up there. The general sentiment there is to build a pipeline West across Northern BC and send the oil direct to China if the US doesn't want to play ball. I believe Kitimat, BC would be the port, and they're estimating 220 tankers going through there per year.

    Peter