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BP has secured U.S. government permission to ship U.S. crude oil to Canada, and Shell (RDS.A,...

BP has secured U.S. government permission to ship U.S. crude oil to Canada, and Shell (RDS.A, RDS.B) has applied for a U.S. export license, signs of how the boom in U.S. oil production from shale rock is reshaping its role in the global energy marketplace. Shell declines to say how much oil it planned to export or to which destinations.
Comments (8)
  • I am confused. Why would you ship crude to a country that is loaded with crude? Unless maybe that is not the final destination.
    12 Oct 2012, 08:26 AM Reply Like
  • And why would you ship crude gathered here somewhere else when we're still importing oil from abroad? Seems more than a bit odd.
    12 Oct 2012, 08:40 AM Reply Like
  • auto44,

     

    My thought exactly (that Canada may not be the "final" destination). It wouldn't amaze me if at least some the oil didn't end up in Asia/China.
    12 Oct 2012, 07:20 PM Reply Like
  • Old Trader,

     

    The geography and settlement pattern of Canada are at the centre of this issue.

     

    Historically Canada has imported oil from many countries, including the US, to help supply the needs of its Provinces to the east of the Manitoba-Ontario border while exporting to the US much of the oil produced in Alberta and Saskatchewan. Alberta and Saskatchewan oil also supplies the needs of Provinces to the west of the Manitoba-Ontario border. This reflects the economics derived from the great distances from east to west (approximately 5500 miles) and the narrow band of Canada's 34 million population along the US-Canada border and within about 100 miles of that border.

     

    There is a complex debate growing within Canada whether (and, if so, how) to increase the delivery or export export of Western Canadian oil to Eastern Canada, the US and further abroad to reflect the growing production capacity of the Oilsands in Alberta and Saskatchewan. In the meantime the increased capacity of US production to supply cheap oil to serve Eastern Canadian needs (i.e. displacing other offshore sources to some extent in that regard) is to be expected.

     

    Canada exports little or no oil through facilities on its east coast. It's exports of Western Canadian production currently is essentially to the US by pipeline. There simply are no facilities at present for Canada to export significant quantities of its oil production overseas through Canadian ports (let alone export US production overseas through those ports). This will not change anytime soon regardless of how the debate to which I refer above is eventually resolved.

     

    There are further complexities (i.e. different natures and types of oil, distribution of refining capacity throughout North America etc.) which accentuate the pattern I have tried to outline above but these don't really change the pattern itself.
    15 Oct 2012, 12:57 AM Reply Like
  • You naysayers! You excoriated President Obama when he killed the Keystone Pipeline. Now what do you have to say for yourselves when he's been proven right as we now need to reverse the flow of that pipeline and send crude to Canada?

     

    Can a little be sent to California?

     

    Yeah, I know, it's a refining problem, not a crude-supply problem. Just funnin' ya.
    12 Oct 2012, 09:05 AM Reply Like
  • I agree ...why are we shipping our subsidized oil to Canada when we import oil here...this is ridiculous.
    12 Oct 2012, 10:03 AM Reply Like
  • You are wrong, 35% of Canadian oil has to be brought in and at brent pricing. The oil goes to locations on the coasts where pipelines don't come into. Think of the Canadians that have to pay those prices with the country sitting on 175 billion barrels of oil.
    12 Oct 2012, 06:39 PM Reply Like
  • Canadian oil is heavy, and depending on what US oil is going there it may make sense from refining perspective
    14 Oct 2012, 02:19 AM Reply Like
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