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There is plenty of pipeline capacity for Canadians heavy crude. It is running into different problems, over which officials have little control, further down the production line, including maintenance and emergency refinery issues in the U.S. Canadian heavy crude prices plunged to their biggest discount to futures since 2018 and, this time, the collapse has little to do with a shortage of pipelines. Article content Heavy Western Canadian Select’s discount to West Texas Intermediate widened US$1.50 to US$32.50 a barrel at Hardisty, Alta., on Wednesday, the widest since November 2018, data compiled by Bloomberg show. That was just before massive pipeline bottlenecks prompted Alberta’s government to impose production caps on local oil companies. (As of Friday, the spread had closed somewhat to US$29.50.) Article content For years, Alberta’s oilsands producers blamed big discounts for Canadian heavy crude on the province’s lack of pipelines, forcing companies to sell at reduced prices locally. But a new export pipeline called Enbridge Inc.’s Line 3 that started operation last year has largely solved that problem. Instead, today’s growing price discount is related to a broader set of issues that Canada has less control over, according to traders. Article content Maintenance and emergency shutdowns […]
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