Thoughts on Keystone Pipeline?

[sumdumguy]

Just reading Gasbuddy blog and one of the
questions asked was for opinions on the pipeline.
Q response was, "Canada should build its own
refinery" instead of shipping raw crude. Good
idea?

[oneoff]

Now while there hasn't probably been a refinery built in North America in the last 40 years; its a lot like planting trees.
Should have been done years ago; but realistically now is the second best time.

And the location as far as Canada goes; should be within Canada. Those oil trains are just hauling away wealth that could be multiplied before shipping out to the world.

The ideal spot in the heart of the oil reserves; with access to the US market; US rail line service (and Canadian potential railbeds) was pretty easy to pick out. Other than speculators and speculation we have not a shred of progress; nor control.

And the regulatory municipal approval has to be done by next April.

Sorry by I'm starting to break up with sadness..............

Where is the vision and the planning?

[Ronski]

Isn't Northwest Upgrading building a plant near fort sask? (partner with CNRL I believe it was on talk radio a month or two ago)

[Ronski]

Got it
http://www.northwestupgrading.com/images/pdf/nwr_sanction_november_7_2012.pdf

I don't know how to post proper links so you'll have to cut and paste. The project starts at 50,000 and peaks at 150,000 barrels per day. Not all but its a start at least.

[TOM4CWB]

Oneoff,

To say there hasn't been a refinery built in 40 years in
Canada ... Is simply WRONG. I could go on an on and
on about the 100's of BILLIONS spent on new
refineries. Heavy Oil Upgraders are Refineries. They
make at the very least Jet and Diesel Fuel.

Part of what makes me upset about the AB Gov... is
that they are spending 10's of billions of AB taxpayers
money... to build refineries by 2020. Billions on Co2 of
Canadian and AB taxpayers $$$... IS all about NEW
refineries in Alberta... then dumping that Co2 back
under the ground into oil formations to pump up
previously unrecoverable oil.

Shell Scotford FtSask... Imperial Oil Strathcona....
Federated Co-op Regina... Petrocan Strathcona...
Suncor Ft Mac... Plus a half dozen others Upgrading in
FtMac... Husky Lloyd Ethanol AND Upgrader...
Parkland at Boden is upgrading Natural Gas Fluids...
Joffrie/Red Deer PETRO CHEMICAL facility...

At times the price of oil in Ab and Sk is up to $25 per
barrel UNDER International prices... simply because
Keystone and the Pr. Rupert Pipe Lines Arn't in place...
which costs taxpayers Billions in lost taxes and IS
revenue transferred to the general public... in essence
a simple subsidy.

[TOM4CWB]

A. ‘Massive’ $2.66B expansion project complete at
Regina refinery
By Bruce Johnstone, The Leader-Post October 26,
2012
Read more:
http://www.leaderpost.com/Massive expansion proj
ect complete Regina refinery/7455271/story.html#i
xzz2FVTBr2XK
B. Husky energy ... Corporate

1 Production in 2013 is expected to be in the range
of 310,000 to 330,000 barrels of oil equivalent per day
(boe/day), compared to estimated average annual
production of 301,000 boe/day for 2012.
The Company is on track to meet its five-year
compound annual production growth goal of 3-5
percent as set in 2010. A new target has been set for
the plan period 2012-2017 at an increased compound
annual growth rate of 5-8 percent.
2 The $4.8 billion capital expenditure program for
2013 is comparable with the $4.7 billion program in
2012. Approximately 50 percent of Upstream spending
will be directed towards the Company's growth pillars.
Foundation

3 The Rush Lake heavy oil thermal project has been
sanctioned and the production capacity has been
increased to 10,000 barrels per day (bbls/day)
compared to the originally planned 8,000 bbls/day.
First oil is expected in 2015.
4 Production from heavy oil thermal is expected to
achieve 55,000 bbls/day by 2017 with an additional
four thermal projects planned to come on stream,
including the 3,500 bbls/day Sandall project, now
under construction.
5 Two new heavy oil thermal projects, the 8,000
bbls/day Pikes Peak South and 3,000 bbls/day
Paradise Hill, came online ahead of schedule in 2012
and are currently achieving production levels
approximately 40 percent higher than their design
rates.

"CALGARY, ALBERTA--(Marketwire - May 17, 2012) -

Husky Energy (TSX:HSE) today made three significant
announcements in Lloydminster, Saskatchewan, which
build on its 65 years of successful operations in the
region.

Grand Opening of Husky Place

The new building is home to the Company's heavy oil
operations and will act as a regional data centre for
Husky's facilities in the Lloydminster area
The 105,000 sq.-ft. three-storey office building is
designed to accommodate 375 staff
Building features include solar panels and a high-
efficiency mechanical system to reduce energy
consumption
"Husky Place is a symbol of the long-term investments
we've made in this region and reflects continued
execution of our business plan," says CEO Asim Ghosh.
"The transformation of our foundation business toward
more long-life thermal projects and horizontal drilling
is on track, reinforcing our position as a leading
Canadian heavy oil producer."

$1.1 million Donation to the Lakeland College
Centennial Campaign

The Lakeland College donation will be directed
towards developing power engineering training and
certification programs and upgrades to the Oil and Gas
Technology Centre and Power Engineering Lab
"We've been a strong supporter of Lakeland College for
many years," says Ghosh. "This collaboration allows us
to improve educational opportunities in this
community as well as invest in the next generation of
industry employees."

CO2 Capture and Liquefaction Project

To further support and extend its heavy oil production
in the area, Husky has started capturing carbon
dioxide from its Lloydminster Ethanol Plant for use in
enhanced oil recovery projects in new and existing
reservoirs
This innovation provides a double benefit by allowing
more oil to be recovered while reducing CO2 emissions
Husky has a substantial resource position in the
Lloydminster area that includes two new thermal
projects, Pikes Peak South and Paradise Hill. Its asphalt
refinery, ethanol plant and upgrader in Lloydminster
add value to the Company's focused integration
strategy by providing a key link between its heavy oil
assets and the market."
http://www.huskyenergy.com/news/release.asp?
release_id=1590890... and we could spend all day
digging up projects in Canada.

Cheers

[cottonpicken]

You guys think people in that industry some how
missed this?

[Ronski]

Sorry Tom but you are wrong about Parkland at Bowden. Its mothballed, lines have 5 psi Nitrogen (inert gas) to hopefully stop corrosion in case they ever fire up again. (The operator I dealt with said they had no idea if the nitrogen was working but it was still holding pressure)
This summer they put in an unloading system for railcars as they've rented out tank space to co-op for railcars of diesel brought in from the US.
Doubtful if it will ever be anything more.

[ASRG]

Northwest Upgrader is probably the greatest example of "snake oil" we'll ever see in our lifetime!
It is a crony capitalism project to process the Alberta government BRIK(bitumin royalty in kind). Basically financed with government "green" grants and loan guarantees. Northwest Upgrader is guaranteed a profit for 30 years!
The upgrader uses very questionable technology designed to seperate C02 from the bitumin during the process. The Alberta government is spending at least $680 million to build a C02 pipeline for this plant to do a tertiary C02 flood into depleted oil fields!
Corporate welfare at it's best!

[TOM4CWB]

Ronski,

I think you can see that there are 100's of Billions $$$
being invested in our Oil and Gas sectors in western
Canada. Keystone is simply an arbitrage facility to
equalise supply to new refining capacity locally in
North America.

[TOM4CWB]

Watching BNN last night... Claim was now North
America has the LOWEST price for energy on the
planet. Between Natural Gas, Coal, and Oil... we have a
competitive advantage second to no one else they
claimed. Will spur development of many sectors.

Just reporting what is being said... don't shoot me... I
am just the piano player!

[ASRG]

Tom: That may very well be for the products at the wellhead, but after the government gets through taxing everything that moves we still pay quite a bit.
Venuzuala has the lowest price in the world at about 7 cents.
Our various provincial governments that produce oil and gas, as well as our federal government are going to have a hard time balancing their budgets because they have become addicted to high energy incomes.

[Burbert]

Tax on tax is another Comedian first.
Excise tax on booze, smokes, gasoline, and
fuel, then gst and in some cases hst on
top, what an f'n joke. Comedians are so
stupid and cowed by the gobermont, they
line up ta pay taxes, and are very, very
happy wit corrupt gobermont practices. Oh
well thats the way business is done, aint
it?