Stillwater Co-Authors Study on New and Existing Refining Markets for Canadian Crude

November 15, 2013 By

On December 15th the University of Calgary School of Public Policy released a comprehensive analysis of the effects of new pipeline capacity from Canada into the U.S. entitled “Catching the Brass Ring: Oil Market Diversification Potential for Canada”Catching the Brass Ring: Oil Market Diversification Potential for Canada”.

Stillwater Associates’ contribution to the paper included information on global supply and demand, and analysis of the US crude distribution system. Our analysis showed PADD 2 and PADD 4 refineries are running flat out on heavy Canadian crude oil. The analysis also showed some 2300 KBD of heavy crude imports to the Gulf Coast, although there is only about 120 KBD of Canadian supply into that market. Heavy crude margins are maximized by coking refineries and the next coker is on the Gulf Coast. The market is short of pipeline capacity from the north.

Take a look at our latest blog entry to find out more about this topic.