Rio Tinto names Shell’s Katie Jackson as new copper chief
Jackson, who is the current president of National Grid Ventures, an energy group, joins Rio Tinto on September 1.
Keystone XL should bring Canadian crude, which at the moment sells at a $30 discount, in line with global prices. At the same time a huge slice of the record profits announced this week by Chevron, ConocoPhillips and Exxon Mobil will we wiped out.
Dow Jones reports the price discrepancy between the US crude contract West Texas Intermediate, which is priced at the Cushing hub in Oklahoma where almost of Canada’s oil ends up, and international prices has brought record profit margins to US oil companies.
Refiners in Oklahoma, West Texas and North Dakota are able to buy oil at prices tied to WTI which on Friday traded at $93/barrel. They then sell the processed fuel at prices pegged to the more expensive Brent which is priced in Europe and sells for $110/barrel.
When completed Keystone XL will have the capacity to carry 1.3 million barrels per day to the US. At the moment only 100,000 barrels of Canadian crude – Western Canada Select in turn sell for $12 less than WTI – goes to Gulf coast refineries.
The price of gasoline and diesel in the market served from Cushing oil already reflects the international price, so consumers won’t be hurt James Williams, an energy economist at WTRG Economics told MarketWatch. “The only losers in this would be the refiners in the area which have benefited from the below-market price of WTI.”
Reuters reported on Wednesday ConocoPhillips, (NYSE:COP) the third-largest US oil company, reported a much higher-than-expected quarterly profit on strength in its refining business while the world’s most valuable company, Exxon Mobil’s (NYSE:XOM) recent report showed profits grew $3 billion boosted by stronger refining margins. On Friday, number two Chevron (NYSE:CHV) announced its profits more than doubled.
Click here for MINING.com’s dedicated Keystone XL page.
MINING.com has argued that the lack of pipelines may not be the greatest threat to the oil sands:
Even if both TransCanada’s (NYSE:TRP) Keystone XL and Enbridge’s (TSE:ENB) Northern Gateway pipelines are built bitumen is expensive to extract, upgrade and refine and cannot compete with the many new shale oil plays – particularly in the Bakken oil basin – which have pushed US production to its highest level in a decade and could see it become the planet’s number one producer of crude.
6 Comments
Ron
Nice to see, Build those pipelines and pay us what our resources are worth.
Railgrade
The Bakken oil basin to become the number 1 producer of crude? I think you are smoking shale oil…..
FoodProcessorVillain
Isn’t it a bit of a non-issue considering all the aforementioned big oil companies also have fairly important presences in the oilpatch?
Clark
Scrap the Xl line and build pipelines to the Canadian West Coast and then whoever wants the oil can pay world market pricing for it. The benifits for Canadian Resources will be for Canadians, where it should be
ELISSAJUNG2
BESIDE THE BIG OIL COS. LOOSING SOME OF THEIR PROFIT, OUR DEAR ELECTED OFFICIALS (FROM THE TOP DOWN) WILL ALSO LOOSE THEIR INCENTIVE MONIES FOR RE-ELECTION CONTRIBUTIONS. CHECK OUT WHO ARE THE BIGGEST CONTRIBUTORS TO THE UP AND COMING ELECTIONS. PREHAPS AFTER THE ELECTION THINGS COULD BE DIFFERENT.
Richricardo
I live in Alberta. I work in the Oil Sands for an Oil Giant!! I am in the meetings were these discussions take place. The Oil Sands in Alberta are what keeps this struggling economy going. We should and are looking to export to Asia as they don’t oppose the pipeline and are willing to pay market value. Unlike the U.S. that receives it vast majority of Oil (90%) through the Mid-West & Gulf Cost refineries are from the Alberta Oil Sands at minimal cost. (Discounted). So I say go for it. If we can benefit from it and the U.S looses there competitive edge, so be it. Remember, we are Canadians!! So look out for the best interest of Canada’s markets, not the Poverty stricken U.S……….
They make nonbusiness savy decisions on there counties needs, WHY SHOULD WE!!!
Regards,
Bobby….