The Globe and Mail reports in its Thursday edition that a surge of Alberta heavy oil
may soon hit global markets
as new pipelines help companies
bypass a contentious ban on United States
crude exports.
The Globe's Jeff Lewis writes that with major export conduits
such as Enbridge's Northern Gateway and
TransCanada's Keystone XL stalled, some companies
have sought U.S. government
licences to re-export
Canadian crude from U.S. shores.
The shipments are rare but permitted
under U.S. rules so long
as the oil is not mixed with that
country's crude.
The volume of such exports
could explode over the next six
months as deliveries begin on
Enbridge's Flanagan South
pipeline, says FirstEnergy Capital vice-president Martin King. Enbridge expects to commence
shipments on the conduit as
soon as December. The pipeline
would carry about 600,000
barrels a day of mostly
heavy crude from Chicago to
Cushing, Okla., where the oil
would be transferred to other
pipelines for shipment to the U.S.
Gulf Coast.
Mr. King notes Europe and Asia are
potential markets for re-exported
volumes. He says crude "numbers could
really take off."
One observer says it is unclear how big the opportunity
might be.
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