TSXV:HWK.A - Post by User
Post by
InvestLargeCon Jan 02, 2015 9:12am
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Post# 23279149
The new Flanagan South Pipeline Helps WCS & HWK.A.V
The new Flanagan South Pipeline Helps WCS & HWK.A.V It is not a secret that Canadian heavy oil prices trade somewhat independently of light oil and WTI due to different supply/demand dynamics.
The heavy differentials have shown steady contraction since 2013 due in most part to increased shipment of heavy oil by rail as well as incremental heavy oil processing capacity in the U.S. Midwest.
And a key new project will help further the WCS pricing and eventually the heavy oil producers like HWK.A.V. The 585 mbbl/d Flanagan South pipeline was commissioned during Q4-2014 providing Western Canadian heavy oil producers with direct pipeline access to the Gulf Coast.
This is why, the price differential between WCS and WTI was below $10/bl in Q4 2014, and it will remain at these single digit levels in 2015 thanks to Flanagan.