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Why canadian crude oil Western Canadian Select is about $45 cheaper than WTI?

  • Last Updated:
  • Oct 19th, 2018 12:34 pm
[OP]
Banned
Jul 8, 2018
40 posts
6 upvotes

Why canadian crude oil Western Canadian Select is about $45 cheaper than WTI?

Today wti is $73 dollar

And our Canada oil is $27, western Canadian select

Is that mean for the same oil, our oil producers have to sell $45 cheaper?

I see statistics canada is posting huge profit for oil industry and are they faking the statistics?

I never see western Canada select increase much this year.

Is statistics Canada based on WTI for their published figure?
42 replies
Deal Addict
Sep 9, 2010
3718 posts
2311 upvotes
Burnaby
cannavaro wrote:
Oct 8th, 2018 9:28 am
Why canadian crude oil Western Canadian Select is about $45 cheaper than WTI?

Today wti is $73 dollar

And our Canada oil is $27, western Canadian select

Is that mean for the same oil, our oil producers have to sell $45 cheaper?

I see statistics canada is posting huge profit for oil industry and are they faking the statistics?

I never see western Canada select increase much this year.

Is statistics Canada based on WTI for their published figure?
Traditional reason: Why Canadian Crude Trades At Such A Steep Discount, oilprice dot com, Nov. 2017

Current reasons: 3 reasons why Alberta oil prices have sunk , CBC, Oct. 4, 2018

TL:DR:
  1. Refinery outages
  2. Pipelines full
  3. New marine fuel standards
.
.
WCS vs WTI 2017 2018.JPG
.
^ Notice how the current price gap is not normal
yare yare daze...
[space reserved for peddling, shilling, self-promotion advertising]
Insert here list of companies with referral programs
Deal Fanatic
Feb 9, 2009
7252 posts
4210 upvotes
cause the environmental whackos are not allowing new pipelines and refineries to be built here... we are just killing our own economy.
Deal Expert
User avatar
May 10, 2005
31943 posts
6437 upvotes
Ottawa
Only one buyer and they will tell you how much they will pay.
Life is short......Make sure you spend as much time as possible on the internet arguing with strangers about politics :). Anonymous
[OP]
Banned
Jul 8, 2018
40 posts
6 upvotes
Can’t we sell crude oil to China or Japan?

I always see our government attempt to sell machinery or electronics to China or Japan. Why not try to sell oil to them?
Pete_Coach wrote:
Oct 8th, 2018 12:20 pm
Only one buyer and they will tell you how much they will pay.
Deal Addict
User avatar
Jul 30, 2010
2013 posts
258 upvotes
cannavaro wrote:
Oct 8th, 2018 2:11 pm
Can’t we sell crude oil to China or Japan?

I always see our government attempt to sell machinery or electronics to China or Japan. Why not try to sell oil to them?
We've been asking the same question to BC and Quebec, but the selfish buggers don't care. We need to get the oil to the coast first.
Deal Expert
User avatar
May 10, 2005
31943 posts
6437 upvotes
Ottawa
cannavaro wrote:
Oct 8th, 2018 2:11 pm
Can’t we sell crude oil to China or Japan?

I always see our government attempt to sell machinery or electronics to China or Japan. Why not try to sell oil to them?
Need a pipeline.....
Life is short......Make sure you spend as much time as possible on the internet arguing with strangers about politics :). Anonymous
[OP]
Banned
Jul 8, 2018
40 posts
6 upvotes
Government should stop subsidizing those manufacturing companies that attempt to sell electronics or manufacturing products to China, Japan and Korea.

Invest more money to sell more natural resources to Asia! Sell more agricultural products to Asia!
Asia need these products. Not sure why when our priminister visit India and China, why he bring a lot manufacturing companies ceo and it companies ceo during his visit! He needs to bring the ceo of transcanada, agrium, potash, gold mine, even bring Mattamy ceo is way more better than bring those third class manufacturing company’s ceo!

Stop wasting effort to subsidize those manufacturing products! Canada’s engineering at least 20 years behind east Asia, 15 years behind South Asia!
Pete_Coach wrote:
Oct 8th, 2018 2:56 pm
Need a pipeline.....
Deal Fanatic
Nov 17, 2004
6336 posts
815 upvotes
Toronto
Alberta really needed that pipeline, they still need it. Eventually, that pipeline will be built as the economics of not building the pipeline is laid bare.
I workout to get big so I can pickup bricks and ****.
Deal Addict
Mar 10, 2011
2113 posts
260 upvotes
Toronto
The federal government killed off the Northern Gateway pipeline which would have brought oil to the BC coast to be shipped to Asia markets. The Trans Mountain pipeline project would bring more oil to the BC coast as well for shipping to Asia, so the Feds better get it built to better support the price of Alberta crude.
Member
Mar 6, 2014
470 posts
74 upvotes
Toronto
http://world.bymap.org/OilProduction.html

Canada is #7 oil producer in the world.

Some oil nations on the list are in turmoil, but some like Brunei and Norway are model nations that we should follow.


http://credbc.ca/norways-oil-gas-policy/

n 1990, the Norwegian government set up a sovereign oil fund, the Government Pension Fund Global, as a place to store the profits from its oil riches and save for future generations. The fund is largely financed by high oil taxes (oil companies are taxed up to a whopping 78% on their profits from Norway oil), and the government only spends 4% of the fund’s assets per year. In January 2014, the fund’s value exceeded 5.11 trillion crowns ($905 billion USD) making it worth a million crowns per person, or about $177,000 USD per Norwegian. By January 2015, it will be worth over one trillion dollars. In addition, Norway has no government debt or deficit, and education is free from pre-school through post graduate university.

https://en.wikipedia.org/wiki/Economy_o ... s_industry

"Brunei is a country with a small, wealthy economy that is a mixture of foreign and domestic entrepreneurship, government regulation and welfare measures, and village tradition. It is almost totally supported by exports of crude oil and natural gas, with revenues from the petroleum sector accounting for over half of GDP. Per capita GDP is high, and substantial income from overseas investment supplements income from domestic production. The government provides for all medical services and subsidizes food and housing."
Deal Guru
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Feb 24, 2007
13123 posts
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I would think the next PC government shall get things moving. With the feminist in power it is hard to get anything accomplished on a bigger scale except the pot.
Deal Fanatic
Oct 6, 2007
6766 posts
2843 upvotes
Kootenays
cannavaro wrote:
Oct 8th, 2018 9:28 am
Today wti is $73 dollar

And our Canada oil is $27, western Canadian select

Is that mean for the same oil, our oil producers have to sell $45 cheaper?

I see statistics canada is posting huge profit for oil industry and are they faking the statistics?

I never see western Canada select increase much this year.

Is statistics Canada based on WTI for their published figure?
There's a huge difference between WTI and Western Canada Select. It's much cheaper to refine WTI and there are more light ends which are more valuable. The spread is always there but it's much higher than usual right now because it's difficult to get it to a market other than the US and they are swimming in their own oil.
Deal Fanatic
Oct 6, 2007
6766 posts
2843 upvotes
Kootenays
Sanyo wrote:
Oct 8th, 2018 12:17 pm
cause the environmental whackos are not allowing new pipelines and refineries to be built here... we are just killing our own economy.
I think there would be far less opposition to a refinery being built and finished products being shipped via pipeline.

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