Home › Forums › Coking › News: DCU, Upgrader › 3.Upgrader (registered users only) › Shell Could Scrap/Downsize Scotford Upgrader 2 & take Bitumen to Coast Refineries Deer Park/Martinez › RE: Shell Could Scrap/Downsize Scotford Upgrader 2 & take Bitumen to Coast Refineries Deer Park/Martinez
Shell is looking at Scrapping or down-sizing 400 MBD Scotford Upgrader (2) near Edmonton & re-routing Bitumen crude to Deer Park &/or Martinez. Shell Deer Park runs Mexico Mayan crude but supply was recently cut by 15% due Pemex production problems. (see coking.com post – coker section)
Some of this could be negotiation strategy or leverage against Pemex crude cuts but slumping crude production is real issue and will likely continue until Mexico opens exploration up to foreign investors who have the needed technology. And if the New Pemex Grassroots refinery goes into construction – eventually its crude demands could prompt additional round cuts to Refinery JV’s in US.
Recent news also indicates that Shell has canceled its plans for new Canadian refinery in Sarnia.
Perhaps these are both reactions to uncertainty over Canada’s New Royalty tariff, proposed Carbon Taxes, New Environmental attacks cancel Oil Sands use US, and renewed emissions push on Kyoto failures, combined with near term crude supply exposure in its larger coastal refineries. <see coking.com post Dec 17 – upgrader section>