India to purchase Canadian Oil

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India will be taking one of the first tanker loads of oil off the expanded Transmountain Pipeline, which is scheduled to start shipping in May.

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Here is where California imports oil from. Although that load of oil going to India might be anomalous, when it leaves the port of Vancouver to go to India, it will pass a tanker of oil going more or less in the opposite direction originating in the Middle East and going to the port of Long Beach. So the question is, why not just ship it to California? Sure, but you have to pay more than India will pay. Notice also that 10% of California imported oil comes from Guyana, through the Panama Canal, up from zero just a few years ago.

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Crude oil from different oil fields and regions have their own unique properties. The Canadian stuff is real crud. A lot of refineries would never be able to process a steady diet of it. Probably the best quality crude comes from Nigeria, ideal for producing gasoline and diesel.
 
Crude oil from different oil fields and regions have their own unique properties. The Canadian stuff is real crud. A lot of refineries would never be able to process a steady diet of it. Probably the best quality crude comes from Nigeria, ideal for producing gasoline and diesel.
Was just about to type pretty much the exact same thing.

The bitumen being produced by CNRL and MEG on these loads is very thick nasty stuff. It is diluted with condensate and the like but it’s nothing at all like the light crude oil that the Cali refineries are designed for.

It’s easy to think it’s all politics but there’s a bit more to it.
 
Crude oil from different oil fields and regions have their own unique properties. The Canadian stuff is real crud. A lot of refineries would never be able to process a steady diet of it. Probably the best quality crude comes from Nigeria, ideal for producing gasoline and diesel.
Seventy eight refineries in the USA process this “ Crud “. If you recently took a ride on a jet plane chances are the jet fuel was processed from this.

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Seventy eight refineries in the USA process this “ Crud “. If you recently took a ride on a jet plane chances are the jet fuel was processed from this.

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Its expensive to process. Which is why it trades at a discounted price to Texas Intermediate and Brent. And, depending on the design of the refinery, the amount that can be processed per day may be limited.
 
Was just about to type pretty much the exact same thing.

The bitumen being produced by CNRL and MEG on these loads is very thick nasty stuff. It is diluted with condensate and the like but it’s nothing at all like the light crude oil that the Cali refineries are designed for.

It’s easy to think it’s all politics but there’s a bit more to it.
Skate to where the puck is going!

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The tankers that will be used are Aframax in size (600,000 bbls). Shipments will be one per week at first like it has been for several years, and then if all goes well, one per day. We’re expecting greenies in their Zodiacs to be buzzing the tankers but hopefully law and order will prevail.

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Here is the local situation. Washington State is no stranger to oil tankers, having received oil shipments from Alaska for the past 45 years. What’s not very evident is that crude from North Dakota is shipped to the refinery complex of Washington State on the BNSF line that goes by Seattle and then back north as far as the Cherry Point refinery.

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