• 4 minutes Is The Three Gorges Dam on the Brink of Collapse?
  • 8 minutes The Coal Industry May Never Recover From The Pandemic
  • 11 minutes China Raids Bank and Investor Accounts
  • 3 hours Why Wind is pitiful for most regions on earth
  • 37 mins Is OilPrice a cover for Green Propganda
  • 22 mins During March, April, May the states with the highest infections/deaths were NY, NJ, Ma. . . . . Today (June) the three have the best numbers. How ? Herd immunity ?
  • 4 hours Sources confirm Trump to sign two new Executive orders.
  • 17 hours In a Nutshell...
  • 2 days Joe Biden to black radio host, " If you don't vote for me you ain't black". That's our Democratic Party nominee ?
  • 3 days Happy 4th of July!
  • 2 days Putin Paid Militants to Kill US Troops
  • 2 days Putin Forever: Russians Given Money As Vote That Could Extend Putin's Rule Draws To A Close
  • 3 days Tesla Model 3 police cars pay for themselves faster than expected, says police chief
  • 9 hours Coronavirus hype biggest political hoax in history
  • 2 days Apology Accepted!
  • 3 days Victor Davis Hansen on Biden's mental acuity " . . unfit to serve". With 1 out of 5 Democrats admitting it. How many Dem's believe it but will not admit it?

Will Canada Cap Its Oil Production?

A normal person’s November is mostly associated with Thanksgiving, preparation for Christmas and New Year, perhaps enjoying the last days of Indian summer for those lucky enough to live in warmer places. A Canadian oilman’s November is a month brimming with dread and horror about what is to come next. When the Western Canadian Select outright price hit 14 USD per barrel on November 14, it marked the lowest point since Argus started assessing the crude in 2006. Similarly bituminous grades with a higher TAN number plummeted even lower – for instance, the Access Western Blend has hit a single-digit number that same day at 9 USD per barrel. As producers experience serious difficulties to keep production afloat against highly adverse conditions, the only genuinely burning question is - when will all this stop?

Let’s start with a bit of crude basics. Western Canadian Select is a blend of roughly 25 crude streams, combining heavily bituminous, sweet synthetic and condensate streams. Its API gravity level oscillates between 19 and 22 degrees, whilst Sulphur content amounts to 3-3.5 percent. It is also quite acidic – even though its total acid number (TAN) never surpasses 1 mgKOH/g, it is only thanks to blending heavily acidic streams with sweeter ones so as to deliberately keep it that way. But do not think that the Canadian plight has hit only bituminous crudes – Syncrude Sweet Premium (SSP), which is a 32-33 degree API and 0.2 percent Sulphur…




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