evnow
Well-known member
Why Transcanada really wants Keystone pipeline ? To extract more money, ofcourse.
http://www.theglobeandmail.com/report-on-business/commentary/jeff-rubins-smaller-world/oil-price-spread-costing-canadian-producers-big-bucks/article2230517/" onclick="window.open(this.href);return false;
http://www.theglobeandmail.com/report-on-business/commentary/jeff-rubins-smaller-world/oil-price-spread-costing-canadian-producers-big-bucks/article2230517/" onclick="window.open(this.href);return false;
While refineries in Cushing pay WTI prices for their feedstock, refineries 640 kilometres south pay about $20 per barrel more for Light Louisiana Sweet, which like all fuels heading into U.S. ports, trades at or near the Brent-based world oil price. Incidentally, those prices have been in triple-digit territory since the beginning of the year.
That is a great deal for the refineries in Cushing that get a crack spread of around $25, compared to a spread of about $5 for those that have to pay Brent-type world oil prices for their fuel.
But for Canada’s oil patch, which exports more than two million barrels a day to the U.S., the $20 or more price discount that has prevailed all year amounts to $40 million a day, or about one and a quarter billion dollars a month in lost petro-dollars.