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Oil sands price differential

HomeSherraden46942Oil sands price differential
04.03.2021

In-situ projects, which use wells and underground steam injection to extract oil from the sands in place, usually carry a break-even price near US$60 per barrel. CALGARY — Cenovus Energy Inc. said Thursday it has been running its oilsands operations at reduced production rates and storing excess barrels due to wider-than-normal light-heavy oil price Western Canadian Select (WCS) is the reference price for heavy crude oil from the oilsands delivered at Hardisty, Alta. Price differential: Canada’s heavy crude usually trades at a discount because of refining and transportation costs, so a price gap or differential is typical between WTI and WCS. According to data reported by Oil Sands Magazine, in October, on average, Brent crude, a global benchmark, rose to US$81 while WTI, a benchmark for U.S. oil prices, surpassed US$70. Yet despite the global recovery in energy prices, Canadian oil prices (WCS) went in the opposite direction, dropping to US$27. That's why prices are spiking just about everywhere. The Brent oil price, considered the global benchmark, has surged above $85 US per barrel. In the U.S., West Texas Intermediate cruised past $75 US. NOT ALL OIL IS EQUAL: EXPLAINING PRICE DIFFERENCES You’ve probably heard people quote the price of “West Texas Intermediate” or “Brent” oil in news or business reports. Although these price benchmarks have significance in oil markets, it may surprise you to learn that Alberta does not receive these prices for its oil. Given the expected production growth from oil sands project and lack of new pipeline anytime soon, we would expect the WCS differential to stay at US$15-US$20 range in 2018 and 2019.

The regional differences suggest that some provinces will hurt and some 7 CERI Study 141, “Oil Sands Supply Costs and Development Projects (2014-2048 )”.

9 Oct 2019 For example, a decade ago, the average price differential between Higher oil prices will extend access to Canada's oil sands since they are  9 Nov 2018 EDMONTON – As debate continues to rage over pipelines and the current price differential for Alberta's oil, a new Corporate Mapping Project  Industry leading oil sands operating costs and sustaining capital cases using flat price assumptions of $45 WTI and $12.50 WTI-WCS differential, $60 WTI and   helped to narrow the price differential between WCS and WTI, however they are not considered from Alberta's Oil Sands – has major implications on the.

12 Oct 2018 The "differential" they talk about is the difference between the price of a barrel of sweet crude in Cushing Oklaholma (WTI or West Texas 

The differential of WTI over WCS was US$20.86 in January 2020. Economic Indicators. View data for: Select an indicator  Much of the oil produced from the oil sands is delivered to market in various blends of bitumen and diluents (which are used to help the bitumen flow in the pipeline)  13 Jan 2020 The recent price decline heightens the troubles of an oilsands industry that holds the world's third-largest reserves but lacks the capacity to ship  13 Feb 2020 In Canada's major crude oil producing region, the Western Canadian Sedimentary Basin, heavy crude and oil sands bitumen at a storage terminal in Hardisty, Alberta. Average Annual Oil Prices and WCS-WTI Differential. 1 Aug 2019 oilsands barrels and oilsands cash operating costs. "Dearth of pipeline capacity drives Canada/U.S. oil price differential to widest point on.

9 Nov 2018 EDMONTON – As debate continues to rage over pipelines and the current price differential for Alberta's oil, a new Corporate Mapping Project 

The differential of WTI over WCS was US$20.86 in January 2020. Economic Indicators. View data for: Select an indicator  Much of the oil produced from the oil sands is delivered to market in various blends of bitumen and diluents (which are used to help the bitumen flow in the pipeline)  13 Jan 2020 The recent price decline heightens the troubles of an oilsands industry that holds the world's third-largest reserves but lacks the capacity to ship 

12 Nov 2019 Despite production rising by 11% year over year to 1.2 million barrels daily and a lower price differential for Western Canadian Select (WCS), 

Download Citation | The dynamics of crude oil price differentials | Crude oil price differentials The Impact of Spatial Price Differences on Oil Sands Investments. 12 Nov 2019 Despite production rising by 11% year over year to 1.2 million barrels daily and a lower price differential for Western Canadian Select (WCS),  Wide price differentials for Canadian crudes to WTI disappeared quickly and The weeks-long shutdown at Syncrude Canada's oil sands production facility in