Projected U.S. demand for crude oil supports two new pipeline projects to deliver Alberta oil to U.S. markets, says Canadian Energy Research Institute (CERI), Calgary.
CERI, in a new study contends the U.S. will need as much as another 600,000 b/d of Canadian oil by 2000 as established U.S. fields decline.
NEW PIPELINE PROJECTS
CERI said the U.S. demand outlook supports two oil pipeline projects now in the regulatory mill.
Canada's National Energy Board will begin hearings Nov. 22 on export pipeline plans by Alberta Energy Ltd., Calgary, and Interprovincial Pipeline System Inc., Edmonton.
Express Pipeline Inc., a unit of Alberta Energy, is seeking approval for a $470 million (Canadian), 777 mile crude line from the Edmonton area to a pipeline hub at Casper, Wyo., with a capacity of 180,000 b/d.
Interprovincial has applied for a $258 million expansion of its existing crude line to Chicago. It would increase capacity by 125,000 b/d with an option to further expand by 190,000 b/d.
The CERI study found as much as 267,000 b/d could be sold to refinery and distribution markets at Wood River and Patoka, Ill., and another 98,000 b/d into Chicago.
It said the Alberta Energy project has potential for as much is 113,000 b/d in new supplies to markets in Wyoming, Colorado, Montana, and the Pacific Coast. CERI noted a link to Casper could serve markets in Illinois.
CERI said the Alberta Energy proposal also could improve the position of Alberta exporters that now lose as much as $1 (U.S.)/bbl to discounters in the Chicago market. The discounts are based on limited delivery capacity for Canadian crude into the Chicago market.
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