Prices are Rising

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Jackielou
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Re: Prices are Rising

Post by Jackielou » Tue Apr 30, 2019 2:31 pm

In case anyone is interested here is an article outlining the sale of heavy oil here in Canada to the U.S. Note the difference in prices...

https://nationalpost.com/news/as-canadi ... -mountain

itspennyc
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Joined: Thu Aug 27, 2015 9:37 pm

Re: Prices are Rising

Post by itspennyc » Tue Apr 30, 2019 6:03 pm

Jackie you are comparing two different grades of oil.

The refinery I am speaking of only refines heavy sour crude. Most refineries are built to refine sweet crude. They are unable to refine the heavy sour crude.

edited to add

The article compares West Texas Intermediate (WTI), also known as Texas light sweet with your heavy oil.


Penny

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Jackielou
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Re: Prices are Rising

Post by Jackielou » Tue Apr 30, 2019 6:46 pm

itspennyc wrote:
Tue Apr 30, 2019 6:03 pm
Jackie you are comparing two different grades of oil.

The refinery I am speaking of only refines heavy sour crude. Most refineries are built to refine sweet crude. They are unable to refine the heavy sour crude.

edited to add

The article compares West Texas Intermediate (WTI), also known as Texas light sweet with your heavy oil.


Penny
But that is how they bench mark the price for our heavy oil. The U.S. compares it to light crude and the enforces a discount on it because it is not light sweet crude.

This info is from my husband who worked for almost 40 years in the patch up here. Most of the time with a company that still exports heavy crude to the states.

The one refinery in Texas has always taken our heavy crude.

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Jackielou
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Re: Prices are Rising

Post by Jackielou » Tue Apr 30, 2019 6:53 pm

Here is a chart ( it is at the bottom of the page) explaining how the pricing works.

https://www.nrcan.gc.ca/energy/fuel-prices/crude/21711

itspennyc
Posts: 1938
Joined: Thu Aug 27, 2015 9:37 pm

Re: Prices are Rising

Post by itspennyc » Tue Apr 30, 2019 7:33 pm

by Jackielou » Tue Apr 30, 2019 5:46 pm

itspennyc wrote: ↑Tue Apr 30, 2019 5:03 pm
Jackie you are comparing two different grades of oil.

The refinery I am speaking of only refines heavy sour crude. Most refineries are built to refine sweet crude. They are unable to refine the heavy sour crude.

edited to add

The article compares West Texas Intermediate (WTI), also known as Texas light sweet with your heavy oil.


Penny
But that is how they bench mark the price for our heavy oil. The U.S. compares it to light crude and the enforces a discount on it because it is not light sweet crude.

This info is from my husband who worked for almost 40 years in the patch up here. Most of the time with a company that still exports heavy crude to the states.

The one refinery in Texas has always taken our heavy crude.
Jackie
http://inthelandofthelivingskiesii.blogspot.ca/
Jackie, I used to work for the company that built and owns that refinery.

I remember very well when they built that refinery. Because at the time the company I worked for only owned 50% of the refinery. It was a very rocky time for my company.

Later they spun off the natural gas component of the company which was the original company. I saw all the reports as I worked in the print shop where we printed them.

Penny

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Jackielou
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Re: Prices are Rising

Post by Jackielou » Tue Apr 30, 2019 7:48 pm

Penny did you even check out the second link I posted?

The last bit explains why they compare Canada Select to West Texas for pricing.

It wasn't always this way but has been for the last 25 years or so. The discount was not always this big either. That didn't happen until about 4 years ago.

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