Quote:
Originally Posted by Frequitude
Huh? How would a refinery monetize the WTI-Brent differential? They don't produce crude, they consume it. The pipeline exploits that arb, not the refinery. As soon as that barrel hits tidewater it's priced on a Brent basis. That would increase the refinery's crude costs by $20 relative to Albeta refineries.
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This needs to be a partnership. Remember, it's likely that Keystone will get built...TransCanada may be able to convert one of their under utilized gas pipelines to crude and ship East. If BC builds a refinery, they will need to pay a fair price...Also, don't assume that all products shipped out of Kitimak needs to be refined...