Quote:
Originally Posted by libtard
Apparently Kind Morgan's twinned pipeline would have a capacity of 890,000 barrels of oil per day, almost tripling production. I am much more in favor of this project than the Northern Gateway. Would all that increase in capacity be shipped by boat? Or would refineries in Burnaby and WA state see more product. And would lower prices on gas in the northwest be a side effect?
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First thing to note is that the Trans-Mountain pipeline is already over-subscribed every month by 60% - 70% over the past few years. IOW, too many sellers/buyers and not enough capacity.
The Trans-Mountain pipeline also has a branch pipeline extending south from Sumas, BC across the US border into WA State and the Cherry Point refinery. BTW, Cherry Point refinery sends jet fuel, etc. back across the border to YVR, etc. As an aside, I can see the Cherry Point refinery, at a very far distance, from my backyard.
Cherry Point refinery has been supplied by Alaskan crude super tankers for 37 years since 1977. Same crude oil tankers that ply the waters past the west coast of Van Isle, right past Victoria, thru the Juan de Fuca Strait, and past the Gulf Islands. No murmur whatsoever.
US subscription of the Trans-Mountain pipeline has also increased as a result of dwindling supply/reserves from Valdez, Alaska.
So much so that the Chevron refinery in Burnaby recently issued a complaint to the NEB vis-a-vis their long-term sourcing rights to no avail. The Chevron refinery now sources a good chunk of its crude via CN/CP rail tanker trains along the Fraser Canyon/Fraser River from AB as well as the Bakken Basin in North Dakota.
In fact, this past Thursday morning, at 11 am, I was having breakfast at an outdoor bistro along White Rock beach. A 110-unit tanker car train passed during the interim - obviously an oil train from the Bakken in North Dakota likely headed to Chevron's Burnaby refinery (which has previously been conformed by a Burlington Northern/Santa Fe spokesperson. That refinery is not equipped to refine heavy oil/bitumen BTW.
Remember that the Trans-Mountain pipeline is a unique "batched" pipeline permitting refined products right up to bitumen (yes even bitumen) passing through today.
OTOH, the WA State Cherry Point refinery is able to refine heavy oil/bitumen as well as the California coast refineries - currently dependent on Alaskan crude.
Ergo, most of the expanded capacity of the Trans-Mountain pipeline will make its way across the border into WA State as well shipped to the Cali refineries. Of course, another chunk of bitumen will also be shipped to Asia - China in particular.
Even with all of the local/US/offshore oil/bitumen demand, dunno if Kinder Morgan's increased capacity will impact prices here. Would hope so, of course.