Our observation: A rail line between Alberta and Alaska could export Oil Sands crude through Alaska and backhaul North Slope condensate. (See story below). We’ll leave it to others to consider economic feasibility of different routes and modes. We will observe that the backhaul idea might make any Canadian export project more feasible. Furthermore, the Oil Sands new challenge of requiring heavy oil to be thinned by about a third, with condensate, and Exxon’s new Point Thomson condensate production does create more condensate for sale…and does reveal a nearby market from Alaska’s perspective. -dh
Calgary Herald by Dan Healing. High prices for condensate, a diluent that allows sticky oilsands bitumen to flow in a pipeline, are expected to remain a thorn in the side of producers already reeling from low prices.
In first-quarter results last week, both Cenovus Energy Inc. (TSX:CVE) and MEG Energy Corp. (TSX:MEG) complained their losses were magnified by the high cost of condensate. For every 10 barrels of raw bitumen, about three barrels of condensate are required.
While bitumen prices tumbled briefly to below US$10 a barrel in the early part of 2016, condensate prices in Canada were at or near the much higher price of West Texas Intermediate crude in New York.
“Oilsands growth into 2019-20, with its heavy weighting towards non-upgraded bitumen, remains the driving force behind rising condensate demand in Alberta,” said RBC Dominion Securities in a research report released Monday.
“Although the North American condensate market appears in equilibrium with adequate pipeline import capacity for now, we envision a wider supply gap emerging in Western Canada over time bridged by mounting U.S. rail imports.”
More here: http://calgaryherald.com/business/energy/strong-bitumen-blending-prices-expected-to-continue-to-hurt-oilsands
Dave Harbour, publisher of Northern Gas Pipelines, is a former Chairman of the Regulatory Commission of Alaska, a Commissioner Emeritus of NARUC, NARUC's Official Representative to IOGCC and Vice Chairman of NARUC's Gas Committee. He served as Gas Committee Chairman of the Western Conference of Public Service Commissioners. He also served as commissioner of the Anchorage Bicentennial Commission and the Anchorage Heritage Land Bank Commission.
He earned a Bachelor of Arts Degree: English, at Colorado State University, a Master of Science Degree: Communications-Journalism at Murray State University and graduated from Utility Regulatory School for Commissioners at Michigan State University. He served as a Vice President for Communications and Public Affairs at Alaska Pacific University, taught bank marketing classes at the University of Alaska and was an English teacher at Los Alamos High School.
Harbour served in ranks of Private - Captain during a 4-year assignment with the Army in Korea, Idaho, Georgia and Fort Meade and received the Meritorious Service Medal among other commendations.
Harbour is also a past Chairman of the Alaska Council on Economic Education, the Alaska Oil & Gas Association Government Affairs Committee, the Anchorage Chamber of Commerce, the Export Council of Alaska and the Department of Commerce's District Export Council. He is a past President of the Alaska Press Club, American Bald Eagle Foundation, Consumer Energy Alliance-Alaska and Common Sense for Alaska.
Harbour was instrumental in founding the American Bald Eagle Research Institute (UAS), the Alaska Support Industry Alliance, the Downtown Anchorage Business Partnership, and Arctic Power.
He also served as CEO of several small Alaska organizations, including the Anchorage Parking Authority and Action Security, Inc. Harbour is also Chairman Emeritus of the Alaska Oil & Gas Congress.
Harbour's wife, Nancy, is a professional, performing arts administrator and his three boys, Todd, Benjamin and William work in the fields of environmental management, energy marketing and medicine.
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