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

[davidI]

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Another reason to get our products to tidewater is so we can be morally superior to climate scum like the australians. They are exporting coal out of their assholes to china who then burns it to produce power. If we can get our gas to LNG terminals, then we could lobby our WEF/UN overlords to pressure aus. to stop shipping coal.

If you want to really hate yourself (and hypocritical BC lefties) then read up on Robert Banks Superport (North America's busiest coal export terminal). Of course, it mostly exports US coal, because Canadians hate themselves.

[ZenOps]

"Consequences" Yeah, it does kind of make sense for the USA to invade the middle east. Just sayin.

[mr2mike]

Trump was a loose cannon but could work people and countries.
Biden, not so sure he even knows what country he's in.

[zechs]

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. We can then sell at market price, rather than taking the super discounted price the americans pay us. .

Good lord

[g-m]

haha right? That's not a thing, its a commodity and if there weren't a glut on one end of the constrained transport then we WOULD be getting market price less transport fees. And we SHOULD be trying to sell MORE oil to the americans. As much as the market will bear.

[ZenOps]

Uh huh. So when is Canada going to cut output? Time to make money.

[ExtraSlow]

Canada is smrt. Let's lower energy security.

[jutes]

Invasion of Canada is all but a certainty under a woke government. We can’t sit on all these natural resources forever, people will come wanting them.

[suntan]

I wonder if this will actually lower his poll numbers, considering the price of gas in the woke provinces.

[zechs]

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I wonder if this will actually lower his poll numbers, considering the price of gas in the woke provinces.

10-20 years ago, we'd be having an election over this.

Nowadays the left in the Liberal leaning provinces have drank so much of the woke kool-aid, I don't think they can even understand how the PM has directly contributed to high gas prices.

They all just scream "oil company subsidies and greedy corpos!" and that's that.

[suntan]

In that case Russia will invade us next. Whoo!

[Sentry]

[littledan]

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Good lord

Are you saying that tidewater access for Alberta would not reduce the differential between WTI and WCS? (not talking about what the americans pay but what we could sell for at a deepwater port)

[g-m]

No. Do you understand how commodities work? If there were additional ports we would still sell the bulk to the Americans. Their refineries have cokers and are well set up to process Canadian heavy oil. Not the case for a lot of overseas refineries.

Since our oil is supply constrained, customers who have pipe space can buy oil from anyone in Hardisty or Edmonton. Since there are less people with pipe space than sellers in the market there is a surplus of the oil driving the price down.

Customers will only ever pay the commodity price plus transport adjustment. You're telling me that customers in Asia or Europe would rather buy our oil at say $80/bbl then pay $15/bbl to transport it rather than pay $80 to Saudi for example and pay only $5/bbl to transport it? Why? Goodwill? This narrative on the news all the time is so ridiculous. Look at a map.

Edit: further, do you realize that TMX is just going to ship oil to Vancouver where it will be loaded on partially full afromaxes, because we can't fully fill them at Westridge, and shipped to.... The US? Because it's closer and tooled for our oil? It's not magically preferentially going to Japan.

[pheoxs]

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No. Do you understand how commodities work? If there were additional ports we would still sell the bulk to the Americans. Their refineries have cokers and are well set up to process Canadian heavy oil. Not the case for a lot of overseas refineries.

Since our oil is supply constrained, customers who have pipe space can buy oil from anyone in Hardisty or Edmonton. Since there are less people with pipe space than sellers in the market there is a surplus of the oil driving the price down.

Customers will only ever pay the commodity price plus transport adjustment. You're telling me that customers in Asia or Europe would rather buy our oil at say $80/bbl then pay $15/bbl to transport it rather than pay $80 to Saudi for example and pay only $5/bbl to transport it? Why? Goodwill? This narrative on the news all the time is so ridiculous. Look at a map.

Edit: further, do you realize that TMX is just going to ship oil to Vancouver where it will be loaded on partially full afromaxes, because we can't fully fill them at Westridge, and shipped to.... The US? Because it's closer and tooled for our oil? It's not magically preferentially going to Japan.

It's not like we've ever gotten to a point where we've run out of pipeline capacity and then had to sell oil at a discount to the US. That'd never happen in Alberta.

[ExtraSlow]

What are we arguing about here? I'm confuzzled

[killramos]

TIL there is no market for Canadian petroleum outside the United States because Coker’s and tanker costs.

So we might as well just take it raw dog.

[suntan]

Fungible is just a kind of mushroom.

[zechs]

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Are you saying that tidewater access for Alberta would not reduce the differential between WTI and WCS? (not talking about what the americans pay but what we could sell for at a deepwater port)

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We can then sell at market price, rather than taking the super discounted price the americans pay us.

What is market price for WCS?

[littledan]

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.