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Strategies & Market Trends : Underexposed Technical Analysis
AQN 5.840-1.2%Dec 4 3:59 PM EST
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From: Underexposed9/28/2019 1:28:48 PM
1 Recommendation

Recommended By
the longhorn

   of 914
 
DIS: Do we need to Transport Oil by Pipeline or Rail Tanker in the Future?


In Alberta, where I live in Canada, we have a huge problem. We have one of the largest reserves of oil but little access to world markets. The only pipelines of significance is to the USA and we don't get world price for our product... basically we sell it at a 26% discount to the USA as they have control of our market.... on top of that the USA charges a tariff on our oil....it is a little known fact but true. Plus there is a huge amount of paperwork for us to certify that the OIL comes from Canada....like we are importing it from eslewhere and funneling into the USA...a trade irritant {sigh}

So Canada is trying to get another pipeline to the Pacific ocean and one across Canada to the Atlantic provinces where most of their oil comes from Saudi Arabia. In the mean time, a fair bit of oil is being shipped south via rail tanker.

Our oil is not refined when we export it... the USA wants it as bitumen which is like a thick asphalt substance. In order to send it via pipeline it must be thinned with an organic diluent. The pressures within the pipeline are higher than that for normal oil...Is it any wonder that this leads to pipeline leaks???

Transportation by rail tanker is expensive and hazardous too. Lac Megantic, Quebec had a huge problem when a runaway tanker train blew up in the center of the town. Also, there is the problem of a derailment of tanker trains as they are often not traveling on rail lines that have been upgraded for the heavier loading causing at least the potential of spills from damaged tankers or explosions. This transportation through population areas is a concern.

Then there is the problem in ocean ports where the oil is loaded into ocean going tankers. Spills during loading are possible as well if these ships collide with another ship or have another mishap in the transportation you can do serious damage to the environment that would take nature decades to clean up.

WHAT CAN BE DONE IT MAKE THIS BETTER???!!!


Well a Canadian company, based in Calgary , Alberta has a solution that is just now undergoing a test shipment of SOLID Bitumen to a refinery in China.

Here is a video of the Melius Energy "TrueCrude"

Melius Energy - introduction to TrueCrude

This product could be the answer to Canada's land locked oil industry

there is a test trial of this transportation of bitumen happening right now

First test shipment to China

What I like about this process is that it uses existing container shipping infrastructure completely, It is safe, non-toxic and were there an accident the product is easy to recover with no damage to the environment.

Unfortunately this is a private company at present.... but I will be on the lookout for it going public at some time in the future.

UE
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