Breitling Oil and Gas Morning Podcast #172 10-17-12

Although China gets most attention as an alternative buyer of heavy oil from Alberta, Canada’s top energy official has taken a trip that deserves notice.

Canada has reciprocated the interest since the US, its default market, turned balky about extending the Keystone pipeline system to serve high-conversion refineries on the Gulf Coast.

An increase in westbound exports depends on completion of Enbridge’s Northern Gateway Pipeline. The pipeline would carry 525,000 b/d of Albertan oil to Kitimat, BC.

Furthermore, the ability of Chinese refineries to process Canadian heavy oil remains limited to “a few hundred thousand barrels per day.  All of that makes a foray by Canadian Minister of Natural Resources Joe Oliver to India especially interesting.

Canada is well-positioned to fulfill India’s rapidly increasing need for energy, minerals, metals, and wood products,” Oliver said, specifically mentioning his country’s potential as an exporter of LNG.

Comments are closed.