RE: RE: RE: RE: Sawn Lake I've been following Southern Pacific for some time, and they make up a chunk of my portfolio, so I'm fairly knowledgeable about their operations.
It's not just the increased spread on price, it's the fact that they need less diluent to ship via rail versus pipeline, and consequently they spend less. As well the rail cars they've contracted can be used to ship diluent back from the coast as well, so they are saving on both sides.
You're right on the availability, but Southern Pacific has had this in the works for some time now, and they have the cars they need. They will be producing about 12000 bbl a day from McKay and 4000 a day from Senlac, though Senlac is linked to a pipeline as well as some production by rail inter province, so its the 12k from MacKay that will be shipped to the coast. Currently, MacKay is only at 1000 or so a day as its in the midst of ramp up, full production isn't expected until early 2014 at the earliest (18 months from October 2012).
Neu Grufti
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