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Mexico to end Oil Exports from 2023

Humphrey Bogart

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Plan is to cut Oil Exports in half next year and phase them out completely in 2023 to meet Mexico's Nationalist goal of energy self-sufficiency.

Canadian Oil just got quite a bit more valuable!
 

Plan is to cut Oil Exports in half next year and phase them out completely in 2023 to meet Mexico's Nationalist goal of energy self-sufficiency.

Canadian Oil just got quite a bit more valuable!
It’s a fungible commodity, so whatever they no longer export to someone, they’ll no longer buy from someone else. Unless there‘a a marked inefficiency in refining domestic oil (like why we don’t ship Alberta oil to New Brunswick), I doubt this will affect spot prices much.
 
It’s a fungible commodity, so whatever they no longer export to someone, they’ll no longer buy from someone else. Unless there‘a a marked inefficiency in refining domestic oil (like why we don’t ship Alberta oil to New Brunswick), I doubt this will affect spot prices much.
There is a marked inefficiency. Different refineries are fine tuned to process different grades of petroleum.
 
I have never understood the minimal refining capability in Alberta compared to their oil production (as I understand it, refinery capacity in AB is under 20% of production); I would have thought that there would have been more investment in adding value.
 
I have never understood the minimal refining capability in Alberta compared to their oil production (as I understand it, refinery capacity in AB is under 20% of production); I would have thought that there would have been more investment in adding value.
I asked that precise question to someone I know in O&G and he told me the answer (at the time) was that it wasn’t worth the investment for Amy more intermediary refinement.

I suspect that Net Zero and the drive by other producer nations/companies to derive maximum residual value during the sunsetting of petroleum may give cause to re-evaluate aforementioned calculus…
 
My other confusion is why nuclear power hasn't been employed in the oil sands, as an inexpensive source of steam generation (with related electric power). That said, I'm not a geologist; there may be valid reasons from that engineering perspective.
 
My other confusion is why nuclear power hasn't been employed in the oil sands, as an inexpensive source of steam generation (with related electric power). That said, I'm not a geologist; there may be valid reasons from that engineering perspective.
Probably a deep dive on the virtuously poor optics of combining dirty oil and Satan’s power…

Nice idea, just not pragmatic…in Canada.

Perhaps if someone trans-provincially shipped some of the BC coal they’re ripping up the Rockies currently to send to Asia, to cleanly (and greenly, of course) clean that oil, then that would be seen as acceptable to the Left Coast survey target audience of the current Government. Then the Government would just increase tax on the oil sands output to fund more bike lanes in BC. Win-win all around!


/s
 
My other confusion is why nuclear power hasn't been employed in the oil sands, as an inexpensive source of steam generation (with related electric power). That said, I'm not a geologist; there may be valid reasons from that engineering perspective.
Maybe watch this space and see what happens with Small Modular Reactors over the next decade…
 
I have never understood the minimal refining capability in Alberta compared to their oil production (as I understand it, refinery capacity in AB is under 20% of production); I would have thought that there would have been more investment in adding value.
We don't do value-added in Canada. 'Hewers of wood and drawers of water' and all that.
 
I have never understood the minimal refining capability in Alberta compared to their oil production (as I understand it, refinery capacity in AB is under 20% of production); I would have thought that there would have been more investment in adding value.
That's a real easy question to answer. There are a 137 refineries in the United States, almost all the crude oil produced in Alberta + Saskatchewan is destined for those refineries.

The entire impetus for developing the Oil Sands was to serve those refineries. In fact the entire existence of the oil sands in the first place is due to American Interest in the Oil Sands and it was Americans who started the entire thing.

Alberta and Saskatchewan have enough refining capacity to meet their own needs but, as we have seen with Trans-Mountain, Keystone + Energy East, they have no way to get their product to market so why build more capacity without a distribution network?

As to your idea of using Nuclear Energy, it was originally conceived that nuclear bombs would be used via underground detonation to heat the bitumen to the point it could be recovered using conventional oil techniques.

This was abandoned due to the rise of the Anti-Atomic Movement in Canada and Canadian Government opposition to nuclear detonations in Canada.

 
We don't do value-added in Canada. 'Hewers of wood and drawers of water' and all that.
We aren't innovators and we aren't creators in this Country. We provide the workforce but that's about it.

The largest oil refinery in Canada is in Saint John, NB. Irving wanted to build a second 300,000 bbl/d in anticipation of Energy East but that got canned when Eastern Canada snubbed their nose at Energy East.

Our decision-making is illogical.
 
Lots of potential in this country but Canadians don't see opportunities anywhere and for the most part would rather "feel good"
 
Gas rationing in BC seemed to do nothing
It’s because they sleep soundly knowing they’re helping the Paris Accord’s Net-Zero target with the “clean, green” B.C. coal they’re exporting to China and other parts of Asia…no matter what other truly environmentally-conscious Canadians point out to them.
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BC only has two, a 56,000BPD one here in Vancouver and anther 30,000 in Prince George. From the Trans mountain pipeline 40% of feedstock is diverted across the US border which goes into making refined fuels, which then are barged back into the Lower Mainland market.

Vancouver international airport at it's pre-Covid peak was consuming 375 fuel trucks worth of fuel everyday, a C Class ferry consumed about two to three large tanker trucks (11,000gals each I think) every week. The trend is to convert these ferries to natural gas, which will free up a lot of refining capacity as there was a shortage of diesel in the Lower mainland in 2017.
 
BC only has two, a 56,000BPD one here in Vancouver and anther 30,000 in Prince George. From the Trans mountain pipeline 40% of feedstock is diverted across the US border which goes into making refined fuels, which then are barged back into the Lower Mainland market.

Vancouver international airport at it's pre-Covid peak was consuming 375 fuel trucks worth of fuel everyday, a C Class ferry consumed about two to three large tanker trucks (11,000gals each I think) every week. The trend is to convert these ferries to natural gas, which will free up a lot of refining capacity as there was a shortage of diesel in the Lower mainland in 2017.
Ah yes, let's convert everything to natural gas, then we need more LNG......by pipeline...oh wait....

So long as Canadian governments do not view natural resources as strategic assets we will continue to shoot our selves in the foot.
 
Gas rationing in BC seemed to do nothing

It wasn't rationing. Some pumps were programmed to shut off at 30L; some had notes posted asking people to limit themselves to 30L. Anyone wanting more than 30L could just drive to another station. I never encountered any extraordinary line-ups. Demand obviously never really exceeded supply; what the measure did likely achieve was to prevent unnecessary stockpiling.
 
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