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
22 July 2025
The gas-hungry sector is set for rapid growth, and oil majors and some of the world’s largest LNG firms are investing in ammonia production and export facilities, though much depends on regulatory support
22 July 2025
Next year’s WPC Energy Congress taking place in April in Riyadh, Saudi Arabia will continue to promote the role of women in the energy sector, with a number of events focusing on the issue.
22 July 2025
Pedro Miras is the serving President of WPC Energy for the current cycle which will culminate with the 25th WPC Energy Congress in Riyadh, Saudi Arabia in April 2026. He has over 30 years of experience in the energy sector, including stints with Repsol and the IEA. Here he talks to Petroleum Economist about the challenges and opportunities the global energy sector currently faces.
17 July 2025
US downstream sector in key state feels the pain of high costs, an environmental squeeze and the effects of broader market trends
