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May 20, 2016 | Will the Crude Rally Continue?

Keith Schaefer

Keith Schaefer is editor and publisher of the Oil & Gas Investments Bulletin.

Questions surround Trans-Canada pipeline conditional approval

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Archives May 20th, 2016

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One Comment

  • Avatar Alfred Winkler says:

    Nothing drive me crazy as bad or incorrect information . For Jim Goddard the leak on the Keystone pipeline in South Dakota was about was about 400 barrels — or just under 17,000 gallons. or half rail tanker car worth in volume terms. The Keystone which started pumping oil in 2009 and can handle 550,000 barrels, or about 23 million gallons, daily. Jim the XL pipeline was never built you are talking original Keystone pipeline. Good god what are thinking Jim a trench with earthen dam around it around , the back fill around the pipe is the earthen dam that slows any leaks in the pipeline Keith Schaefer should know better we do not sell WTI oil but western canadian select crude oil price and use that differential to Brent Oil price and discount equation for grade different or even better use a similar heavy grade that has tide water access as Mexican Maya heavy crude grade ( that is very close to WCS grade in API gravity and sulfur content and other grade factors ). The price for WCS averaged US$35.28 per barrel in 2015. For 2015, WCS price was US$8.71 per barrel lower than the average price of Maya.. So we are selling WCS at about 25 % discount to Americans than what world market price willing to pay for a very similar barrel of heavy crude oil . Once WCS has tide water access this 25 % discount will close but will not totally disappear the American will have to pay closer to world price for Canadian heavy crude in the order of 4 billion dollars a year more, if close the gap by half or $ 115 US per Canadian .

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