Crude oil discount? Explain

[farmaholic]

Bucket(Alex)....

What is "unfetterer and crony capitalism"!

[bucket]

Bucket(Alex)....

What is "unfetterer and crony capitalism"!

I thought the NDP sold the government share of the upgrader and saskferco.....

Wall gladly silver plattered potash to agrium. ....from protecting it as a strategic resource.....

From not allowing the sale at 39 billion to losing it at 18 billion.....

That Wall was brilliant.....as a 2 watt light bulb

[grassfarmer]

inferior product, higher impurities and metals, harder to move, more energy intensive to process, refineries to handle are far away etc etc. Lots of reasons its not top quality crude and deserving of some discount but not what we are currently seeing.

The chinese want it though but unrefined. They want their own facilities and people to upgrade it as usual thats why refining here is not an option. Thats the only market for this stuff.

But the oil companies are to blame as well when they shifted canadas oil business to mostly oil sands. There is lots of light sweet crude in the Bakken and shale that is left untapped while they went that route. They should abandon that idea and go back to little wells in the middle of nowhere in the prairies where Gore and celebrities cant see from their private jets.

At least Jazz is honest, this has nothing to do with Liberals or not even if SF3 is still mad he voted for them and wants to obscure that fact by piling hate on them. We're suffering because there has been a market downturn and our reserves are some of the most costly in the world to develop, produce and get to market. Only upside in my opinion is the fracking of shale gas is largely uneconomic now as that is an environmental disaster.

[jazz]

In the last 15 yrs, Canada aggressively went into the sands while the US went hard in the Bakken in ND and other similar plays. Now those fields are still highly productive when prices are low. Efficiencies and new drilling techniques have made the US super competitive, while we still work like buggers trying to turn sludge into oil and move it thousands of miles.

Now the US is refracking those wells and making huge gains.

Our best bet it to abandon these big steam plays in the sands, forget about ever building a pipeline again cause thats done, developing more oil out of the Bakken like crazy, piping it up to Fort Mac for blending and then trucking the rest across to ND where large US pipelines originate.

Otherwise our industry is good as dead.

[jazz]

And on the otherside, the envirowhacko whoe dream of a world run by windmills and John Lennon songs, you are way off base.

This world is going to add another 3 Billion people, like it or not. Even if world birth rates fall to 2 kids per person, 3B is certain. And those people will want cars and refrigeration and tvs. Who is going to deny them those basics. We will expend much more energy just to feed those people. Fossil fuels will be a major mix for a long time yet.

[SASKFARMER3]

Wow, What a Liberal Spin Grass.

You Prove again you have no Clue on Anything that goes on in Canada.

Were you this Clueless back home.



It is the Fault of One Fool Justin Trudeau and if you lived here grass when his old man was running Canada you would understand how that fool almost destroyed this country. People hated him by the time he was done.

But as a New Canadian your just like the rest you believe JT is the Ultimate and the rest of us have it all wrong.

Yes, I voted for Ralph once. We hung in the same circles so if someone you're hanging around with is running and you get along with that person you support their choice. He was in opposition at that time.

But he knows this time I will not be voting for him and last time when Trudeau won I wasn't voting for him because I believed Trudeau was similar to his father and western Canada would be hurt.

But like all new Canadians, you'll blindly support a Trudeau till the end not realizing they don't give a rats ass about western Canada or Canada in General. Its all about being a Trudeau and power.

I think ill Believe in the Oil Markets a guy like Dan Who studies oil and gas for a living. Not some flunky who cuts and pastes.

[SASKFARMER3]

Jaz your Theory is not going to work because your shipping fracked oil and gas north then back south to the USA. So again wouldn't all this shipping make Canadian oil way more expensive than the oil out of the sand? Plus if you have no way to get a second or third buyer of the product wouldn't you be selling at a discount or fun with math would make that work also.

Just saying math is fun and some have no clue.

[jazz]

Just saying math is fun and some have no clue.

Well I think all options need to be looked at otherwise we risk stranded resources.

Would have to reverse one of the main pipelines. Yes it would cost to ship it back, but by simple blending, you would have a partially upgraded product already. You could dump some more to the co-op refinery maybe for further upgrading and the rest to US midwest refiners. Yes still one customer, but a better product.

[Oliver88]

Nutjob and Groper both opposed the NEB approved Northern Gateway.
Trudeau brought in new regulations to kill Energy East to the cheers of loons in Quebec.
TransMountain was bought for $4.5 billion by the Liberals so they don’t have to make a decision before next federal election......they could ram this through with legislation if they wanted.

CN, CP are moving record amounts of oil.

How will grain move once Alberta and northern Saskatchewan finish harvest?

[jazz]

Nutjob and Groper both opposed the NEB approved Northern Gateway.
Trudeau brought in new regulations to kill Energy East to the cheers of loons in Quebec.
TransMountain was bought for $4.5 billion by the Liberals so they don’t have to make a decision before next federal election......they could ram this through with legislation if they wanted.

CN, CP are moving record amounts of oil.

How will grain move once Alberta and northern Saskatchewan finish harvest?

I would forget about TMX ever becoming a reality. I would bet there are no shippers that will want to put a barrel of oil on a pipeline controlled by crazy carbon taxing govts and obstructing, ransom holding native bands and envirowhackos. I wouldnt do a drop of business with that entity.

[chuckChuck]

Steven Harper a came to power in 2006, 12 years ago. He failed to facilitate significant pipeline capacity increases.

Trudeau has been in power for just 3 years. He approves of Keystone and wants Transmountain built.

One has to wonder what credible business plan would suggest increasing oil sand production with large investment in a very cyclical commodity, before securing the ability of getting the product to market?

One thing we know for sure is, we can't rely on the USA to buy all our extra oil. Thanks to new technology for horizontal drilling and fracking of tight oil, the US is producing more and more of its own oil. That was a market shift that wasn't predicted.

The oil sands are some of the most expensive to develop, low quality oil in the world.

As a farmer I would not invest a large amount of my capital to produce grain on the lowest quality land and then wonder why I couldn't make money.

Some farmers and some of the oil industry often get sucked into to believing the high prices and good times are going to last forever. A quick look at history would tell you otherwise.

[jazz]

Steven Harper a came to power in 2006, 12 years ago. He failed to facilitate significant pipeline capacity increases.

Ahh chuck, what time is Butts coming over for dinner.

https://calgaryherald.com/opinion/columnists/corbella-trudeau-plain-wrong-about-harpers-pipeline-legacy Trudeau plain wrong about Harper's pipeline legacy

One of his projects was on the existing transmountain pipeline.