OTCPK:VGIPF - Post by User
Post by
DayOfReckoningon Dec 19, 2012 3:33pm
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Post# 20752092
Helloo? McFly!
Helloo? McFly! All crude oil is not valued equally. Light oil that is low in sulphur (sweet) is more valuable to refiners than heavy oil with higher sulphur content (sour). Canadian producers market a wide range of crude oils, ranging from heavy sour bitumen blends from Alberta's oil sands to pentanes plus (C5+) primarily obtained from natural gas. The difference in value between light and heavy oil (the differential) is primarily determined in the market for each type. In general, a widening of the differential leads to poorer profitability for Canadian heavy oil producers.