RE:RE:RE:RE:Tmx alone will double Suncors s/p...The biggest factor in the WCS discount is a lack of market access , we are captive to US demand and pricing . Keystone XL , EnergyEast and TMX would have solved that but this country can't get past itself . The US can plan , permit , build and commision a pipeline in 2 years , you can't even get a permit in Canada after 10 years of studies and court cases . Until political powers stop their hostility against our own interests , Canada will be hostage to a captive market denying needed revenue to all level of the economy .
Konaboy wrote: Can anyone shed some light on all of the factors contributing to, and maybe their relative weighting, on the spread between WCS and WTI?
My understanding is that the heavy crudes have a more complicated refining process, and require extra NG, which adds to processing cost. Also we are basically an island, and the US is effectively our only external buyer, so we are at the mercy of their demand. Other factors?
And once we have the ability to ship heavy crude, will other world refiners/markets still apply these discounts, or will the spread shrink considerably?
Thanks for your thoughts!
Wynjoe wrote: "Part"of the problem with Suncor is its access to foreign markets, tmx will help alleviate this problem. "Perception"in all stock markets is the biggest driver ,so I still believe the tmx pipeline can add more value to Suncor then financial accounting. I already believe s/p should be double from where we now sit, so any catylsts can double us very quick, let alone a pipeline to shipping lanes.Suncor is an EXTREMELY STRONG BUY. I also think dividends could and will go way up from here in the not too distant future.