European Energy Crisis, Foreshadowing for the rest of the world?

[ThePenIsMightier]

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I just don't understand why an overseas refinery wouldn't tool up to process WCS if the price + transport + processing cost was lower than WTI or Brent. Once you pay down your cap cost of the refinery upgrade then you would have cheaper feedstock forever. If the WCS to WTI gap is $20-$30/bbl, and the transport differential cost between say saudi and the customer vs vancouver and the customer is $10/bbl, over time if we had capacity I would expect the WCS to WTI differential to trend toward that $10/bbl. I understand that it would never reach that based on the additional cost to process but I don't buy that pipeline capacity + a deepwater port would not help us.

The "tool up to process" cost starts at about $500 Million USD.

[suntan]

That's not even 10 Peace Bridges.

[mr2mike]

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That's not even 10 Peace Bridges.

You factoring in "up keep" costs?

[g-m]

"cheaper feedstock forever"

[ExtraSlow]

WCS is not uniquely heavy guys. Not at all. Same shit comes from multiple regions around the world and is processed at dozens of tidewater port refineries.
Heavy crude from Iraq, Australia, USA Columbia, Peru, Indonesia and Venezuela is already on the world market. WCS is not at all unique.

[ThePenIsMightier]

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WCS is not uniquely heavy guys. Not at all. Same shit comes from multiple regions around the world and is processed at dozens of tidewater port refineries.
Heavy crude from Iraq, Australia, USA Columbia, Peru, Indonesia and Venezuela is already on the world market. WCS is not at all unique.

I only agree with Venezuela on that list, but I'm not that current.
15 years ago, Iraq's idea of "heavy oil" was adorable.

[suntan]

https://www.britannica.com/science/h...-and-tar-sands

[zechs]

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WCS is not uniquely heavy guys.

I'd say WCS as a product is extremely unique, and it has little to do with the actual physical product.

https://www.oilsandsmagazine.com/mar...iscount-to-wti

[suntan]

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I'd say WCS as a product is extremely unique, and it has little to do with the actual physical product.

https://www.oilsandsmagazine.com/mar...iscount-to-wti

You are misanalysing.

The article basically admits that shipping constraints are the main factor in the discount.

It even says that "quality" of the product doesn't map to pricing.

[Yolobimmer]

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I only agree with Venezuela on that list, but I'm not that current.
15 years ago, Iraq's idea of "heavy oil" was adorable.

Venezuela and a lot of California.

Ours is mainly tar. Literally tar. I've held various conditions in my hand. Some like molasses, some like peanut butter. Most needs to be cut with essentialy gasoline to pipe. Thats why it explodes. Its not the tar, its the the thinner that is volatile.

And the thicknes of WCS has increased over time as a greater fraction is from the oil sands, it has changed tremendously over the last 20 years (thicker and more sulfur. )

It's literally one of the top 3 dirtiest oils in the world.

[zechs]

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You are misanalysing.

The article basically admits that shipping constraints are the main factor in the discount.

It even says that "quality" of the product doesn't map to pricing.

I think you need to read what I said again. I said WCS is unique, and it has nothing to do with the physical product. So quality is off the table.

I never said shipping constraints weren't a factor.

Once again I ask, "what is the market price of WCS?"

[littledan]

"However, transportation discounts would be minimized by expanding capacity to BC's West Coast, either to Vancouver via the Trans Mountain Expansion, or to Kitimat, using Northern Gateway. Both offer the shortest distances to tidewater, minimizing pipeline tolls. Once seaborne, crude can be inexpensively shipped to Asia or California, two very large buyers of heavy, sour crude."

So wouldn't that help?

[ThePenIsMightier]

Speaking of Kitimat - Kitimat Clean Refinery is the best idea to go nowhere in several years. It's about 70x better than NWR which we will be paying for for a about a decade after it's moth balled...

[Yolobimmer]

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So wouldn't that help?

California is the only place that oil was going, or ever going to go, and that's still the US, and heavy oil is still discounted.

Plus, California hit peak oil use in 2014, it's been curbing back since.

China doesn't like us, has no reason to do us a favor. Especially since we take part in the anti China rhetoric and kidnap their business leaders, ban their computers etc.

China does business with friendly countries. It buys oil from 45 different regions, but 60% comes from 5 long standing allies.

There's no market for our molasses. This whimsical thinking of "build it and they will come " is a fairy tale.

The US has cranked up prduction and is self sufficient. More cheap Canadian oil would just fatten their wallets with sales of their refined products. We would see no benefit as we are alergic to Royalties.

[mr2mike]

What's the deal with westjet adding direct flights Calgary to Terrace?
Has to be LNG related in Kitimat?

[ExtraSlow]

From mountain biking, rock climbing and sport fishing in the summer to skiing, snowshoeing and snowmobiling in the winter, Terrace is a hub of outdoor activity year-round. Beyond its lush landscape and wealth of outdoor activities, the city is also rich in culture. You can browse artisanal goods, local products and handmade crafts at the Skeena Valley Farmers' Market.

Sounds delightful

[Tik-Tok]

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Sounds delightful

I've never met anyone from Terrace who would use those words to describe it.

[mr2mike]

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I've never met anyone from Terrace who would use those words to describe it.

I knew a bunch of people from Terrace. Been up there once for a visit. Typical small town BC.

Maybe this hot springs gets up and running again.
https://www.theskeena.com/2021/06/02...-near-terrace/

The fiberglass UFO stuff was all over the place. Definitely odd.

[ThePenIsMightier]

I read it as "Skeet Valley Farmers Market" and that made it sound not as good...

[ExtraSlow]

Skeet skeet brrrrrr