Registered User 
Small improvements in takeaway capacity are good, but they are more likely to result in decreased curtailments than increased WCS price. Both are positive, but they provide benefits to some producers more than others.
AB Govt announced no production quota on new oil wells, trying to stimulate drilling activity. If that's successful, it'll eat up some more capacity pretty easily.
Originally Posted by killramos
This quote is hidden because you are ignoring this member. Show Quote
Registered User
Luckily rail has been hitting record highs this month, we'll see if they can keep it up during Dec. Econs to the gulf are open after keystone went down.This quote is hidden because you are ignoring this member. Show Quote
Conventional wells haven't broken through 500kbpd for the past few years so I doubt there will be much growth with them with this new rule. Only a handful of players would be able to take advantage of this new provision anyway.This quote is hidden because you are ignoring this member. Show Quote
Last edited by The BMW Guy; 11-08-2019 at 05:07 PM.
Registered User
Yeah it’ll help a bit.
We’re still stuck with one customer who sets our price. We need to get product across the pond.
The increase in revenue from trans Mountain alone will be mind boggling - without increase or production.
"The most merciful thing in the world, I think, is the inability of the human mind to correlate all its contents... some day the piecing together of dissociated knowledge will open up such terrifying vistas of reality, and of our frightful position therein, that we shall either go mad from the revelation or flee from the light into the peace and safety of a new Dark Age."
-H.P. Lovecraft
Registered User
Will it? I don't know much about the industry, but have heard there aren't many places that use our type? Of oil. Is that accurate or can anywhere use it if it's mixed? Is mixing it difficult? Can some one clear this up a bit for meThis quote is hidden because you are ignoring this member. Show Quote
Registered User
That's bullshit eco-lies. Yes there are different grades of oil in the world, but Canadian heavy oil is similar to what's produced in Venezuela, parts of the middle east, and even California. There are hundreds of refineries around the world specifically designed for this common type of oil, and they prefer to run that over other lighter grades.
The market is there if the product can be delivered.
This quote is hidden because you are ignoring this member. Show Quote
Registered User
Is the heavier grades of oil better for different things? Like asphalt or can any grade make anything...know what I'm talkin' about?
coffee shop soy boy
Depends what you want and how much effort ($$$) you want to put into it.
Fun fact. We produce LOTS of different grades of oil in Canada. We aren’t just a province wide oil sands pit.
Originally posted by Thales of Miletus
If you think I have been trying to present myself as intellectually superior, then you truly are a dimwit.
Originally posted by Toma
fact.This quote is hidden because you are ignoring this member. Show Quote
Registered User
The thing is that "oil" is made up of a lot of different length hydrocarbon chains. There's a distribution of different length chains in all oils. so "heavier" oil just has that distribution more skewed towards longer chains.This quote is hidden because you are ignoring this member. Show Quote
As for what you can make with it, depends on what equipment you have at your refinery. If your refinery is set up right, you can make almost anything with the heavy stuff, from asphalt to Diesel to gasoline to plastics. "light" oil is better for things like gasoline and plastics AFAIK.
killramos is right, WCS is a well-publicized heavy grade, but there's many other Canadian benchmarks grades.
https://oilprice.com/oil-price-charts#prices
another Fun fact, there's more energy per barrel in "heavier" crude than light.
This quote is hidden because you are ignoring this member. Show Quote
Registered User
So what's in a barrel of California Buena Vista to make it the most expensive oil in the world at $66.73? Does it require less effort to get a final product out of it?
Will fuck off, again.
Registered User
Good question, not entirely sure. Extraslow did a great job explaining about grades and refining.This quote is hidden because you are ignoring this member. Show Quote
We do produce a lot of different grades, getting our primary product - WCS - out to the world will help tremendously.
@speedd og I think some of the most expensive oil in the world is near China. Some of the off shore projects there are returning 80-90/bbl right now. Why specifically, I’m not sure.
Very pure good stuff I suppose.
"The most merciful thing in the world, I think, is the inability of the human mind to correlate all its contents... some day the piecing together of dissociated knowledge will open up such terrifying vistas of reality, and of our frightful position therein, that we shall either go mad from the revelation or flee from the light into the peace and safety of a new Dark Age."
-H.P. Lovecraft
Registered User
The local price of any crude grade is heavily effected by the local refinery capacities plus transportation options. The same way our oil is far from refineries, a grade priced near a refinery hub could be worth more.
There are also some "boutique" grades out there that are traded in relatively low volume. The high price isn't really a reflection of some intrinsic purity or anything.
This quote is hidden because you are ignoring this member. Show Quote
Registered User
Looks like the "smart money" is now betting on an upswing in worldwide oil price. If my thesis about US shale dropping is correct that make sense.
https://calgaryherald.com/pmn/busine...f-36d47791bd66
This quote is hidden because you are ignoring this member. Show Quote
Registered User
I looked into this, and here's the reason. It's a really small "boutique" grade that represents something like 3000 barrels per day produced relatively near to the California refiners. For reference, California has more than a dozen oil refineries that process something like 1.9 million barrels of oil per day, the vast majority of it brought in via tanker. So, really, nothing special about the oil except that it's close and scarce.This quote is hidden because you are ignoring this member. Show Quote
This quote is hidden because you are ignoring this member. Show Quote
Registered User
fun graph from Enerlead regarding Texas well counts:
Clearly November is a partial month, but .....
This quote is hidden because you are ignoring this member. Show Quote
Director of Awesomeness
Don't have any knowledge of the Canadian oil market, but I was always under the assumption there isn't any rail capacity to move significant amounts of oil for export but this was interesting to see:
https://calgaryherald.com/business/e...venezuelan-oil
---
Registered User
If only we had a pipeline that could ship our energy products east. Perhaps we could even call it Energy East.This quote is hidden because you are ignoring this member. Show Quote
Registered User
ftfyThis quote is hidden because you are ignoring this member. Show Quote
This quote is hidden because you are ignoring this member. Show Quote
coffee shop soy boy
Pipeline that ships Environment and Social Justice from the east. Sounds like the CBC to me.
Originally posted by Thales of Miletus
If you think I have been trying to present myself as intellectually superior, then you truly are a dimwit.
Originally posted by Toma
fact.This quote is hidden because you are ignoring this member. Show Quote
Registered User
Was going to post the repsol article here too.
That’s amazing if true. Also read Aspen project will not go ahead until the curtailment ends.
Would love to see that project go ahead.
"The most merciful thing in the world, I think, is the inability of the human mind to correlate all its contents... some day the piecing together of dissociated knowledge will open up such terrifying vistas of reality, and of our frightful position therein, that we shall either go mad from the revelation or flee from the light into the peace and safety of a new Dark Age."
-H.P. Lovecraft
Registered User
Well... USA continues to blow expectations out of the water.
New production record today, 12,800.
Rigs are down, fine. They had thousands of wells ready to go from what I understand. And they’re coming online now that the pipeline capacity is a available down there.
Lord Emperor Trump.
"The most merciful thing in the world, I think, is the inability of the human mind to correlate all its contents... some day the piecing together of dissociated knowledge will open up such terrifying vistas of reality, and of our frightful position therein, that we shall either go mad from the revelation or flee from the light into the peace and safety of a new Dark Age."
-H.P. Lovecraft
Posting Permissions
Quote