This is actually last week's "This Week In Petroleum".
I didn't post it last week but thought the topic worthwhile.
Posted on 06/05/2013 5:19:05 AM PDT by thackney
Canadian refineries, like those in the United States, are working to increase their use of growing production of crude oil from Texas and North Dakota. Monthly exports of crude oil from the United States to Canada have historically averaged 24,000 barrels per day (bbl/d) and were principally delivered to refineries in central Canada. However, U.S. exports to Canada averaged nearly 100,000 bbl/d over the first 3 months of 2013 (Figure 1).
While the Midwest (PADD 2) has been the traditional delivery source for U.S. crude oil exports to Canada, the recent increase in exports is being led by deliveries from the Gulf Coast (PADD 3) and the East Coast (PADD 1). Nearly all of the PADD 3 crude exports to Canada were light crude oil. Trade press reports indicate that Suncor Energy, Irving Oil, Trafigura, and Valero are among the companies that have already shipped, or will soon ship, crude oil from the U.S. Gulf Coast to refineries in eastern Canada. PADD 1 exports were barrels that moved east from North Dakota's Bakken region by rail and then were exported through New York state.
According to the Canadian Association of Petroleum Producers, Canadian refineries in 2011 processed 878,000 bbl/d of western Canadian crude, 110,000 bbl/d of eastern Canadian crude, and 680,000 bbl/d of imports. The imports primarily supply refineries in eastern Canada that have limited access to western Canadian production or are configured to run light crude oil.
Rapidly growing crude oil production in western Canada, North Dakota and Texas has overloaded crude oil transport infrastructure, resulting in discounted pricing for Western Canadian Select, Bakken, and Eagle Ford barrels. Crude movements by rail are addressing some of the midcontinent supply overhang, but rail alone cannot keep up with the rising production. Refiners in eastern Canada are starting to make logistical changes needed to replace imports of Atlantic Basin crudes with lower-priced oil produced in North America.
Texas crude oil production has risen sharply since 2009. After averaging 1.1 million bbl/d from 2000 to 2009, production reached just over 2 million bbl/d in 2012. Much of this growth is attributable to light sweet crude oil production in the Eagle Ford shale formation in South Texas. Roughly half of the refinery capacity in the United States is located in PADD 3, but many of these refineries are configured to run heavy sour crude, and thus may not be well-suited to absorb increasing light crude production. At the same time, the opportunity for "like for like" displacement of imported light sweet crude into the Gulf Coast market is rapidly being exhausted as PADD 3 light sweet crude imports dropped from 886,000 bbl/d in 2010 to 279,000 bbl/d in 2012 and have fallen substantially lower in recent months.
Changes in pipeline flow patterns are also occurring. Last July, Canada's National Energy Board approved Enbridge's proposal to reverse the flow of crude oil on a portion of its Line 9 pipeline, which runs from Sarnia, Ontario, to Montreal, Quebec. Upon completion of this first phase of the project, crude oil will move east from Sarnia to North Westover Station, Ontario. A second Enbridge project will extend the flow reversal from North Westover Station to Montreal and increase capacity on the line from 240,000 bbl/d to 300,000 bbl/d. Once both projects are completed, Enbridge expects the pipeline to primarily transport light crude oil from west to east. Line 9 currently moves crude imported to Canada from the North Sea, West Africa, and the Middle East from east to west. This reversal would enable eastern Canadian refineries to process more North American crude while backing out other Atlantic Basin crudes.
Gasoline and diesel fuel prices both decrease
The U.S. average retail price of regular gasoline decreased three cents to $3.65 per gallon as of May 27, 2013, also down three cents from last year at this time. Prices were up a cent on the East Coast to $3.50 per gallon, and a nickel in the Rocky Mountain region to $3.73 per gallon. The largest decrease came in the Midwest, where the price dropped nine cents to $3.78 per gallon. On the Gulf Coast the price is $3.37 per gallon, a decrease of three cents from last week. Rounding out the regions, the West Coast price is lower by two cents at $3.93 per gallon.
The national average diesel fuel price decreased one cent to $3.88 per gallon, two cents lower than last year at this time. The Gulf Coast price is $3.78 per gallon, unchanged from last week. The Rocky Mountain price increased two cents to $3.86 per gallon. The West Coast price decreased two cents to $3.99 per gallon. Rounding out the regions, the East Coast price is $3.86, a penny lower than last week.
Propane inventories gain
Total U.S. inventories of propane increased 1.2 million barrels last week to end at 45.1 million barrels, but are 10.5 million barrels (18.9 percent) lower than the same period a year ago. The Midwest region led the gain with 0.6 million barrels, while Gulf Coast stocks increased by 0.5 million barrels. Rocky Mountain/West Coast inventories increased by 0.1 million barrels, and East Coast inventories gained slightly. Propylene non-fuel-use inventories represented 7.6 percent of total propane inventories.
This is actually last week's "This Week In Petroleum".
I didn't post it last week but thought the topic worthwhile.
Black gold, Texas Tea...but Jed aint moving to Callyfornya. He’s is staying put this time.
They moved back to the hills when Jethro started dressing up like Jethrene.
Jethro was always the impressionable type.
Drill baby, drill!
North American production of crude petroleum is beginning to seriously affect the output of the Middle East, and all of OPEC nations, including Venezuela.
Odd, that Brazil has never chosen to join OPEC. They are a major exporter, too, since they have declared petroleum has only a more reduced role in motor fuels (ethanol production has displaced a LOT of motor fuel petroleum). They would export a LOT more ethanol, too, if its use were not so severely restricted and taxed in other countries.
There is an awful lot of sugar in Brazil, and they have to get rid of the surplus somehow.
One the spot, fellow prisoner of Mass. A lengthy article on the flow and distribution of OCEANS of oil, and ALL of it is “local” with not a single drop coming from an OPEC country that hates the USA.
What I find wonderful is the fact that WE have “found” all these oceans of oil and we have the positive need and use for all of it. Those OPEC people may have lots of oil, but it is ONLY good if they can get rid of it, and we don’t need it any more. I smile.
Jim Irving’s refinery in St. John, NB has the Balkan oil coming to it via tanker car over the BNSF/CN or CPRS railroad. It is a straight run across Canada all the way to New Brunswick.
The other major deal I have read about was a NJ refinery that was buying Balkan oil and also shipping it CPRS from SK to Albany, NY. It was then loaded on a barge and brought down the Hudson river to NJ.
No, they are not.
BRAZIL
http://www.eia.gov/countries/cab.cfm?fips=BR
While they are in the top 10 for total production, the use nearly all of what they produce.
Country Comparison > Oil - exports
http://www.indexmundi.com/g/r.aspx?c=br&v=95
Brazil's trade deficit hits record levels largely on recent oil import, sluggish exports
http://www.foxnews.com/world/2013/06/03/brazil-trade-deficit-hits-record-levels-largely-on-recent-oil-import-sluggish/#ixzz2VLhNeSrS
June 03, 2013
I believe you mean Bakken (North Dakota, Mountana) not Balkan (Southeastern Europe)
Ed Stych Digital Editor- Minneapolis / St. Paul Business Journal Email | Twitter | Google+ | LinkedIn
An American Indian tribal group has received approval to take over a piece of land in oil-rich North Dakota and build a $400 million oil refinery.
The Three Affiliated Tribes received approval from the Bureau of Indian Affairs and the Department of the Interior to take over a 469-acre piece of land near New Town in northwestern North Dakota, between Williston and Minot.
The tribes plan to use 190 acres of the land to build a refinery that will take crude oil from the nearby Bakken region and produce up to 13,000 barrels a day of diesel fuel, gasoline and propane, the Bismarck Tribune reported.
The rest of the land will be used to raise buffalo.....(yummy...Buffalo steaks...)
Correct, so sorry. I do not think the CN, CPRS or BNSF serve Europe:)
I also remember hearing of a refinery south of Sioux Falls, SD. Anyone know what ever happened with that?
That is a very small, simple refinery. As I understand it, they won’t make gasoline. Diesel and Naphtha to dilute Canadian Bitumen are their targeted products.
It still is good for business, but 13k (I’ve read 15k) BPD isn’t going to make much change in 3 million barrels we send to Canada (recent increase). We do get 3 million back; most of that is crude oil from other locations, but also gasoline, diesel and other products.
I meant a new refinery to be built south of Sioux Falls, north of Sioux City.
The keep limping along in the permitting process.
SD Supreme Court upholds Hyperion refinery permit
http://siouxcityjournal.com/news/local/a1/sd-supreme-court-upholds-hyperion-refinery-permit/article_3f249be0-2511-5a94-b0d8-b53b67f15404.html
January 24, 2013
They rarely post much in the way of updates:
Now that the US refines more petroleum product than we use, the pressure has been backed off from back in 2007 when they started.
Canadian ping
To all- please ping me to Canadian topics.
Canada Ping!
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