Can new upgraders solve Alberta’s differential dilemma?
The government wants to help ailing oil sands producers by funding new upgraders
To upgrade or not to upgrade is the question facing Canadian oil producers after the Alberta government committed C$1bn ($780m) in incentives to build new pre-refining facilities aimed at increasing prices for its ultra-heavy oil sands and bitumen. The crippling differentials between light and heavy oil that reduce the price Canada's crude fetches on world oil markets has long been the bane of Canada's oil sands producers. Differentials are a function of the oil sands' crude quality compared to lighter grades. The heavier the viscosity, the less it sells for. The discount for Western Canadian Select, a key price benchmark, typically averages 25-30% off the West Texas Intermediate price, but
Also in this section
14 March 2025
Gas production slumped to an eight-year low in 2024, but new discoveries and partnership with Cyprus paint a more positive outlook
13 March 2025
Gas will become a more important part of the energy mix longer-term, raising the alarm for much-need investment as supply struggles to keep up with demand
13 March 2025
The spectre of Saudi Arabia’s 2020 market share strategy haunts a suffering OPEC+ as Trump upends the energy world
12 March 2025
Petronas-Eni eyes joint venture to prioritise key gas developments, with huge opportunities for growth in Indonesia and a steady Malaysia portfolio
