November 06, 2015

In 2015 US denies oil market access to its ally Canada but grants access to Iran

The US administration rejected the Keystone Pipeline which hinders the closest ally of the USA, Canada, from getting its oil to markets While the US administration previously made a deal to get Iranian oil to market

“It’s ironic that the administration would strike a deal to allow Iranian crude on the global market while refusing to give our closest ally, Canada, access to U.S. refineries,” said Jack Gerard, president of the American Petroleum Institute, in a statement.

This does not impact Canada much in the near future.

The Gulf refineries have tripled their processing supplies of Canadian crude since 2010 to more than 300,000 barrels a day, according to Andy Lipow, president of Lipow Oil Associates, a consulting firm based in Houston.

“The urgency for the pipeline is certainly down because oil prices are $45 and not $100 a barrel, and you are seeing a decline of investment in Canada, which means that increases in expected future growth are simply not going to be there,” Mr. Lipow said.

Other pipelines and rail have been adapted to service the movement of oil

The Seaway Crude Pipeline System (SCPS), commonly known as the Seaway Pipeline, is an oil pipeline system which transports crude oil between Cushing, Oklahoma and Freeport, Texas, and though the Texas City, Texas Terminal and Distribution System on the Gulf Coast of the United States. The Seaway is an important crude oil transfer link between two petroleum regions within the United States.

Although Seaway shipped oil north (to Cushing) for many years, in June 2012 the flow of the system was reversed to ship oil south (out of Cushing), instead.

Plans have been announced to increase Seaway's capacity to 400,000 barrels per day (64,000 m3/d) in 2013 (completed as of 11 January 2013) and, in 2014, adding 450,000 barrels per day (72,000 m3/d) additional capacity via a "twin" long-haul pipeline. As well as for an 85 miles (137 km) lateral to the ECHO crude storage facility in southwest Houston and the Port Arthur/Beaumont refining complex.

Canadian crude oil producers continue to build new markets for their expanding production. New market opportunities include Eastern Canada, the U.S. and growing economies in Asia.







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