| Rosco - 2/7/2025 18:59
You have been misinformed. The US imports about 8.6 million barrels/day of crude oil and oil products, and exports about 10.1 million barrels/day of crude oil and oil products. 60% of your imported oil comes from Canada, and it is largely heavy sour crude. This oil is discounted in price from your WTI crude oil, which makes it attractive to your midwest refineries. These refineries are set up to deal with Canadian heavy sour crude, and can’t just be switched over to refine your light sweet crude by snapping your fingers. Plus, many international refineries are designed to refine light sweet crude. So, at the end of the day, your oil companies buy Canadian crude, refine it into the products you need, and sell your American crude for a premium, making money all along the way.
Rosco
This is how I understand the situation with the sand crude oil too. Just to add though, this oil is sold at a discount to Midwest refiners now, good for USA (refiners get cheaper oil and consumers get cheaper fuel, in theory) bad for Canada. If the pipeline is completed, it’s only slightly better for Suncor/Canada, the oil will be sold at full price to export at the gulf, USA mostly loses and the pipeline is the big winner. |
Canada
