The In­di­ca­tor: 1.5 mil­lion

Alberta Oil - - OBSERVER -

THAT’S THE NUM­BER OF BAR­RELS PER DAY OF

Cana­dian crude that U.S. Gulf Coast re­finer­ies could process if pipe­line ac­cess to the re­gion was ex­panded. This 50-per­cent in­crease over to­day’s ca­pac­ity is es­ti­mated by the Cana­dian En­ergy Re­search In­sti­tute (CERI). In the past 10 years, heavy crude im­ports from Mex­ico and Venezuela to those re­finer­ies have shrunk, leav­ing ex­cess ca­pac­ity that Cana­dian oil sands pro­duc­ers could fill. But ship­ping crude by rail from Canada to the U.S. Gulf Coast is wholly un­eco­nomic from the pro­ducer’s stand­point, ac­cord­ing to a CERI study. The study found that net rev­enues for Cana­dian pro­duc­ers av­er­age about US$13 per bar­rel be­fore trans­porta­tion costs.

A yard in Gas­coyne, U.S. houses hun­dreds of kilo­me­ters of pipe sec­tions that are sup­posed to make up the Key­stone XL pipe­line, should it ever be ap­proved. This photo was taken on April 22, 2015. The pipe sec­tions have been sit­ting at this lo­ca­tion for...

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