Some real world facts that dispel a former Liberal environment minister’s anti-oil and anti-pipeline protester’s bogus claims that there is no business case for the Trans Mountain Pipeline, and that oil demand is dying. It is time the federal government to actually follow through on its claims of working for the middle class, building a strong economy, and jobs, or get out of the way and be replaced by one that will. Enough with the endless rhetoric, hollow words and platitudes, and weak leadership that has done nothing for this nation or it’s people except endless embarrassment.
Mr. Anderson repeated a common claim: that there is no market for Alberta heavy crude in Asia. That claim is bogus. As pointed out in BiV: more than $1 billion worth of Alberta crude was exported by oil tanker via Vancouver in 2018, with China accounting for about one-third of the sales. Remember, this is from constrained pipeline that often didn’t get a full marine allotment to Westridge.
As for Mr. Anderson’s argument that the world is awash in light oil and that heavy oil is somehow inferior to light oil. That is simply false. Heavy oil and light oil are different liquids with different chemical properties and different markets.
The proof of this is in the market. Asian refineries are buying up all the heavy crude they can get, often at a premium over lighter crudes.
Maya (the chemical twin to land-locked Alberta WCS) for export to Far East was selling at $51.16/bbl.
WCS (the Canadian heavy oil used to represent Alberta heavy) was $39.19/bbl and
West Texas Intermediate $48.96/bbl.
Look at those numbers. The high sulfur, heavy oil was selling at a premium over the lighter crude and Alberta was losing almost $12/bbl of value because its oil was land-locked. It doesn’t take a PhD in Economics to know that if the market is paying a premium for a product then clearly someone wants that product.