Enbridge CEO says pipeline expansions won't lift Canadian crude prices

Wednesday, March 28, 2012

Enbridge's plans to expand its crude pipeline systems from the northern US to the Texas Gulf Coast will lift heavily-discounted US oil prices, but provide no early relief for hard-hit Canadian crudes, Enbridge CEO Pat Daniel said late Tuesday.

Bentek Energy analyst Adam Bedard said that reduced refining capacity for light oil as producers shift towards heavier slates will increase the backlog, with discounts to WTI expected to reach an average $27/b by 2014, compared with $16/b or more currently for synthetic crude and Bakken light oil from North Dakota. Calgary-based trading firm Net Energy said Western Canadian Select, a heavy Alberta blend, has sold as much as $38/b below WTI on occasions in recent weeks.

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