Canada Oil Expansion

Canada Oil Expansion

OilWhile the U.S. is thriving on exporting oils to other countries. Canada has emerged to be 60% cheaper than its neighbor the U.S. and the global market Brent. Chinese refiners are looking at Canada to become their first supplier for the oil.

Currently the demand to process oil has increased for China to manufacture material production for infrastructure construction (to be used to build roads, roofs etc.). As Venezuela’s Merey production is shrinking, it has forced China to look for an alternate supplier. In order to keep up with the economic boom in construction the obvious choice was to look for the Canadian crude.

With the impending American sanctions upon the Iranian exports and economic crisis in Venezuela shipments has been felt since May. There is a looming cloud over OPEC to ease such crunch.

China peak season for construction is late September and October, the demand needs to be supported accordingly.

China imported 1.58 mmbbl of Canadian crude in September, almost 50% higher than the 1.05 mmbbl in April.

China infrastructure spending has surged in the second half of this year compare to the first six month. The demand has boosted the prices of the material to a record high in the nation. With a lower cost the refiners are going to see their market profit margin grow.

Other producers like Brazil could be used as alternative suppliers. With the ever-growing demand in China new infrastructure the cheap Canadian crude oils have become a new alternative.

While new buyers are coming to purchase crude oil to Canada, Alberta government is supporting its industry by pledging financial support to ease the province’s bottlenecks in crude pipelines and rail shipping.

With new constructions and upgrades to oil-sands bitumen to help transport crude through pipeline. New plants construction to process crude into plastics, fabrics and fertilizers.  It also supported the expansion of the Trans Mountain pipeline to send more crude to British Columbia for export.

Canada has invested on upgrading and expanding their infrastructures to meet the demand. Taking advantage of the political mood to strive and gain international market shares.

One Reply to “Canada Oil Expansion”

  1. Thanks for every other informative website.

    Where else may I am getting that kind of information written in such a perfect way?
    I’ve a project that I am simply now operating on, and I have been at the
    look out for such information.

Leave a Reply

Your email address will not be published. Required fields are marked *