Caper11
Active VIP Member
Upgraders do not make diesel.
Refinerys do.
Upgraders make synthetic crude but it is still crude oil.
I agree adding any value to our oil is a good idea but right now there is no incentive to bring a upgrader online.
Hell Nexen won't even repair the one they blew up.
My vision
If our PM had some lady balls he would make a raw bitumen pipeline header and a finished product header (gasoline/diesel/jet) from the Pacific to the Atlantic.
Ship loading out both ends.
Each province could build their own refineries or upgraders and export as they wish.
It would benefit every single Canadian.
I did not say it was pure diesel, upgraded heavy oil crude like Suncors OSA smells and looks like diesel and flows to the refinery In Edmonton, there are different products and batches sent down that line.
There are very few refineries that can handle heavy oil, the redwater refinery is designed to handle it.
Our light sweet oil actually trades at close to WTI prices, so upgrading heavy oil here IMO is better for Alberta instead of sending it across the border to be refined and than sold back to us.
There is different methods to upgrade oil.
There is more than one reason why Nexan cold stacked there upgrader, as well.
It would be nice to see capital money put into upgraders and get the mod yards full again. Alberta needs another major project right now that does not rely on shipping our product out of alberta.