RE: RE: what is the bitumen spot priceBitumen pricing is something that Canada needs to get a grip on, or the US will stick it to us on Oil the same way they are sticking it to us on NG.
For all those that think the Keystone pipeline is the answer, a far better answer would be to run a Pipeline to the West Coast (Kitimat) right beside the NG line they are planning. That is what the Russions did with the ESPO (Eastern Siberia - Pacific Ocean) Pipeline, and almost the day it opened, Brent Crude differential to NYMEX and WTI spiked. Until then, the EU was hosing them and they had no other market.
If we don't have an alternative customer for our Oil, the US will keep supply high and price low. Shipping all that Bitumen to the US for them to upgrade hurts even more. If we built more upgraders and at least had the ability to send oil to the coast, we would probably get 65-70% of Brent pricing for HO we shipped to the states. You don't need to ship it to China - just need to have the ability to, and the price would climb.
Take a look at this chart and tell me what is wrong:
In June of this year, Light Oil was 93.44 but bitumen was only $66.41. In Dec 2010, Light Oil was only $82 and bitumen was $66.7.
Imagine what NG price would be if we could ship part of it to China? When you only have one customer, they can dictate the price. Keystone will only mean that $20-30 from every bbl we produce in Alberta will go to refiners in Texas and everytime there is any disruption or Turnaround work, the price will tank.
If we had a Pipeline to the coast we could get 65% of Brent for bitumen which would be$75, but more importantly, you wouldn't see the wild fluctuations in pricing (In Feb we were only getting $49, when WTI was $79).
I'm all for good relations with the States, but they are hosing us for our NG and our Oil. Wake up Canada.