• 3 days Nuclear Bomb = Nuclear War: Saudi Arabia Will Develop Nuclear Bomb If Iran Does
  • 2 days Statoil Changes Name
  • 3 days Tillerson just sacked ... how will market react?
  • 2 days Russian hackers targeted American energy grid
  • 2 days Is $71 As Good As It Gets For Oil Bulls This Year?
  • 3 days Petrobras Narrows 2017 Loss, Net Debt Falls Below $85bn
  • 3 days Proton battery-alternative for lithium?
  • 3 days Ford Recalls 1.38 Million Vehicles (North America) For Loose Steering Wheel Bolt
  • 2 days Oil Boom Will Help Ghana To Be One Of The Fastest Growing¨Economies By 2018!
  • 2 days Country With Biggest Oil Reserves Biggest Threat to World Economy
  • 3 days I vote for Exxon
  • 2 days HAPPY RIG COUNT DAY!!
  • 3 days UK vs. Russia - Britain Expels 23 Russian Diplomats Over Chemical Attack On Ex-Spy.
  • 3 days Why is gold soooo boring?
  • 3 days South Korea Would Suspend Five Coal - Fire Power Plants.
  • 2 days Spotify to file $1 billion IPO
Alt Text

OPEC President: Oil Cut Extension Hasn’t Been Discussed

OPEC President al-Mazrouei has said…

Alt Text

Russia Could Pull The Plug On The OPEC Deal

Russia may leave the OPEC…

Alt Text

Will Rosneft Move Forward In The Arctic Without Exxon?

U.S. sanctions against Russia have…

Irina Slav

Irina Slav

Irina is a writer for the U.S.-based Divergente LLC consulting firm with over a decade of experience writing on the oil and gas industry.

More Info

Trending Discussions

Canadian Oil Prices Surge As Upgrader Goes Offline

Oil Sands

An unscheduled suspension of operations at Syncrude’s upgrader in Alberta has lifted Canadian oil prices substantially, also strengthening U.S. blends that make up WTI, as the bulk of Canadian synthetic crude and heavy oil sands crude is exported to its southern neighbor.

As a result, prices of Canadian heavy crude jumped to the highest in two years, while the price of synthetic crude, which is what the Syncrude facility produces and a lot of oil sands producers use, rose to a four-year high. The spread between WTI and Western Canadian Select shrank to $9.80 per barrel, the narrowest since 2015, Bloomberg said.

The suspension was prompted by a fire at the upgrader last month. The fire put a temporary stop to oil production at the Syncrude project, majority-owned by Canadian Suncor, which will be in effect throughout April. However, a Suncor spokeswoman told Bloomberg that pipeline deliveries of “finished product” from the upgrader will be restored at up to 50 percent of the usual rate later this month.

The Syncrude upgrader, which processes bitumen from the Alberta oil sands, producing synthetic oil, is the second-largest such facility in Canada, with a daily throughput of 350,000 bpd. Related: Tanker Traffic Points At Much Tighter Oil Markets

As a result of the fire and consequent suspension for repairs, ConocoPhillips, which produces heavy crude from bitumen extracted at its Surmont project, has had to shrink its 140,000 bpd output. Conoco has to mix its Surmount output with synthetic oil from the Syncrude facility, and quite a lot of it—40-60 percent of the end product—in order for the oil to be shipped south via pipelines. The disruption comes as Conoco plans to bring the total daily production rate of Surmount to 150,000 bpd by the end of this year.

Aggravating the problem of Canadian crude supply are other upgraders who are undergoing scheduled maintenance, which has so far taken off 76,000 bpd from daily output.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:

Back to homepage

Trending Discussions

Leave a comment
  • Bill Simpson on April 10 2017 said:
    Those Canadians had better get the pipelines into the USA finished, while the business friendly Republicans are still in total power in the United States. No US government is likely to shut down working pipelines. (It is probably illegal.) Building new ones, could be a different story. Get er done, Canada.
    China can get oil from next door Russia, and the Middle East. The excessive debt China is creating, and the coming effects of their long one child policy, could cause them severe economic problems not too far down the road. The USA will be a great oil market for the rest of this century, even if there are wars and revolutions in China, and all over the planet. And both the US and Canada believe in human rights. The communist dictatorship who run China, not so much. They and Putin make a great pair.

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News