Home › Forums › Refining Community › Refinery News › Enbridge purchase COP Seaway & reversal to provide early access to Gulf Coast – news results WTI hit › RE: Enbridge purchase COP Seaway & reversal to provide early access to Gulf Coast – news results WTI hit
Here is article on TransCanada Keystone XL P/L Delay (still expected finish 2013) with COP perspective of positive impact CA Crude & P/L will have to their Mid-Continent & Gulf Refineries (all with cokers). COP is eager replace Maya & Venezuelan crude to its Gulf refineries with Canadian Hvy Crude.
This feeling is shared by ExxonMobil, Valero & number of other Gulf Refiners as past PDVSA/Venezuelan JV partners whose assets were privatized /stolen by Chavez. <Note also see the Beaumont News/SETX article on Keystone Delays: SEXT officials argue for Keystone XL pipeline (http://www.beaumontenterprise.com/news/article/SETX-officials-argue-for-Keyston-XL-pipeline-2652176.php).>
COP has also recently sold half Seaway P/L ($1.5 Billion) to Enbridge a TransCanada rival (after COP Upstream-Downstream split whereby Upstream got make call on asset) which will now be reversed & moving 150MBD CA/Bakken crude into Gulf by mid- 2012 and potentially expanded 400MBD by 2013..so either way COP has lock on some increased CA Crude for its Ponca/Borger/Lake Charles/Sweeny refineries.
The Cushing Crude Glut has been drained somewhat by over 40MBD of Rail shipments a normally expensive non-starter (Requires $8-12/bbl break even rail transport cost) has dropped +$20/bbl WTI vs. Brent differential that has made WTI cheaper than heavy Maya and created temporary windfall
All these reports of course do not point out that Obamas delay Keystone until 2013 was pure political payback to liberal & environmental fringes of his support who have also been major roadblocks to this job creating, Mideast & Venezuelan freeing cheap crude supply that would otherwise end up being exported to China.Regards