BILLIONS LOST: Massive Gap Between Canadian Crude Prices & West Texas Intermediate Grows Again

Discount to West Texas Intermediate hits biggest level since late 2013.

Canada is deprived of billions of dollars every year because of how much cheaper Canadian crude oil is compared to West Texas Intermediate.

According to Bloomberg, the gap in price (also referred to as the ‘discount’) has reached the largest level since December of 2013.

A report notes “Prices dropped a day after Suncor Energy Inc.’s Chief Executive Officer Steve Williams said at a conference Wednesday that repairs on the Syncrude Canada Ltd. upgrader, which shut after a power disruption in June, were complete and the last of three sections of the plant was ready to start operation. He also said that Suncor’s new Fort Hills oil sands mine was ramping up faster than planned after oil production started earlier this year. The mine is expected to operate at 90 per cent of its capacity by October.”

An additional factor is that the BP refinery in Indiana will soon be undergoing maintenance – resulting in lower demand for Canadian crude oil. This is an example of how Canada’s lack of refining capacity within our own country is a serious economic weakness.

Of course, the ongoing pipeline debacles, and lack of pipeline capacity is a key cause of the long-term price discount we’ve seen for many years in Canadian crude prices. This results in billions of dollars lost every year, meaning less money for tax cuts, fewer jobs, less money for the military, less money for infrastructure, and less money to help Canadian Citizens in need.

Spencer Fernando

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Our governments must get big kick backs from USA buyers ? Or maybe people need to realize our so called oil companies are all American owned and they prefer it this way no refineries as they make even more money at Canada’s expense

Ron Voss

How about disloyalty of our high-paid energy industry leaders to Canada, like Suncor CEO Steve Williams, and indifference to lost livelihoods for their workers?

How big oil helped create “Leave it in the Ground” legislation by another name

Jacob Hiller

Yes Ron. In 1947 Earnest Manning said that, “The international oil companies must not get it’s hands on our oil.”. Then he went and sat on the boards of three big oil companies and sold us out. CREEnergy oil and gas is our only hope of ever regaining control of our oil.

Gonzo the Magnificent

Ron, thanks for the Rebel Youtube. I haven’t been on their site over the weekend – as I am a member – and missed Sheila’s commentary on this phoney creep. Probably a sitting member on some high ranking climate change council.

Jacob Hiller

How typical of Canadians. This article is stating that we get less for our oil then USA or Saudi. Naming fake issues like our ability to supply and nepotism. Never once was the real issues mentioned. The API of our heavy crude mixing with our very light crude to become Western Select. The demand for this crude is low because the refineries need to scrub out the sulpher and find it not economical. How ever there are a few refineries that tool up for this and depend on the low price to compensate them for taking the trouble to refine… Read more »

Dale Barry

Rockafeller and Tide are bent on burning us then picking up the pieces for 10 cents on the dollar, and turbo is handing it to them on a silver platter!