https://oilprice.com/Energy/Energy-General/More-Bad-News-For-Canadas-Crumbling-Oil-Industry.html
Canada’s oil industry has had to deal with superlow prices resulting
from the lack of pipeline capacity, and with production cuts that have
shrunk bottom lines. Now the production cuts are being relaxed, but with
the new parliament set up, chances are Albertan producers may never see
the completion of the Trans Mountain pipeline or the replacement of
Line 3, not to mention Keystone XL, which is facing strong opposition on
both sides of the border.
Western Canadian Select is trading below
$40 a barrel, at a more than $15 discount to West Texas Intermediate.
This is nowhere near the $50 discount WCS suffered last year, before
Alberta ordered the production cuts. It’s a comfortable discount that
keeps Canadian crude attractive for U.S. refiners. Unfortunately, demand
for it may decline next year as the IMO enforces its new sulfur
emissions rules. And because of lack of pipelines to other export
markets, Canadian crude will be pressured further and the East-West
divide will expand.
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