Results for: Oilsands Production

Suncor Energy Inc. has announced it will lease and operate Aframax oil tanker ships to transport crude from the recently completed Trans Mountain pipeline expansion to Pacific markets. This move aims to save on shipping costs and maximize profits for the company. The Trans Mountain pipeline expansion has increased Canadian oil shippers’ access to export capacity, boosting the profitability of Suncor’s oilsands production. It has also enabled future production growth for both Suncor and the oilsands sector. Suncor’s long-term contracts with customers along the West Coast and in Asia ensure a steady demand for the crude oil transported by the pipeline.

The recently completed Trans Mountain pipeline expansion is expected to provide a significant boost to Canadian oil prices, according to MEG Energy Corp. executive Erik Alson. The expansion, which was officially opened last week, gives Canadian oil shippers access to an additional 590,000 barrels-per-day of pipeline capacity and opens up new markets for oilsands product in Asia and along the U.S. Pacific Coast. MEG is one of the main beneficiaries of the Trans Mountain expansion, with 20,000 barrels per day of contracted capacity on the pipeline. Prices for Canadian heavy oil increased, and the WCS-WTI differential narrowed, in April in anticipation of the start-up of the pipeline expansion. Alson said Tuesday he expects that to be a long-term trend.