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Canadian heavy oil sells at a discount to other heavy crudes because of the high cost of delivering Alberta's heavy oil to the big US refining hubs. Therefore, the best way to increase the price of Alberta's heavy oil is to build more pipeline capacity, particularly to the US Gulf Coast (enter Keystone XL ) and reduce reliance on rail transport, which is expensive and inefficient.

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how much for that heavy oil? | oil sands magazine

How much for that heavy oil? | Oil Sands Magazine

Canadian heavy oil sells at a discount to other heavy crudes because of the high cost of delivering Alberta's heavy oil to the big US refining hubs. Therefore, the best way to increase the price of Alberta's heavy oil is to build more pipeline capacity, particularly to the US Gulf Coast (enter Keystone XL ) and reduce reliance on rail transport, which is expensive and inefficient.

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The refineries in the Gulf coast contribute about 45 percent of the refining capacity, and 30 percent total crude oil production in the US. Of late, the imports have declined in the Gulf coast, thanks to drilling in the Eagle Ford Shale in Texas and Bakken shale in ND .

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Since mid-2014, we have seen a dramatic fall in crude oil prices as the average Brent price went down from USD 112/bbl in June 2014 to USD 48/bbl in January 2015 (a more than 50% decline). However, refiners have generally not been reporting a sharp decrease in earnings and in some

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