Integrated oil and crude resource centric companies in Western Canada have shifted investments to heavy oil/bitumen production and reduced spending on upgrading projects in consideration of the light crude production ramp-up across North America.  SAGD and bitumen mining (XOM Kearl project) projects continue to expand albeit with growing concern about market access limitations and the outlook for light – heavy crude price spreads.

EAI, Inc. tracks and analyzes Western Canada production streams, upgrading projects, and heavy/bitumen production projects for which the outlooks are integrated with an assessment of current supply logistics, pipeline capabilities, and projects.  Rail projects are expanding to transport heavy crude to market reducing the need for condensate and routing to markets that are currently not accessible via pipeline.

The U.S. – Gulf Coast heavy crude market will continue to grow as the most valuable outlet for growing Canadian heavy crude production potential.   Increasing heavy crude needs in the Midwest and Midcontinent coupled with replacement of Latin American-origin crude and increasing Gulf Coast refinery take of heavy crude will shift southbound movements from predominately light crude to predominately heavy crude movements during the mid-term part of EAI, Inc.’s latest outlook.

Western Canada is featured extensively in EAI, Inc.’s latest North American Crude study release.