January 31, 2024 – Wall Street Journal
The U.S. Is Spoiled by Cheap Canadian Oil. That’s About to Change.
By David Uberti
Companies across much of the U.S., including some owned by Canadian companies, have responded by adding capacity or honing operations to turn Canadian crude into fuel, chemicals or asphalt. The Midwest, the country’s largest importing region, hasn’t received foreign shipments from anywhere but Canada in years, according to the Energy Information Administration.
“The Midwest is held captive by Canadian crude oil,” said Martin King, an analyst at RBN Energy. Farther south, where refineries and export terminals dot the shores of Texas and Louisiana, traders have more alternatives in the form of heavier crude produced in Mexico or Venezuela.
U.S. refining officials have played down the impact on American consumers and the domestic fuel-making industry, saying the sector can tweak plant-by-plant operations based on what crude is available. But some have warned that it could siphon off supplies from the arcane business of sending tankers-full of Canadian crude to countries such as China.
Read the full article here: https://www.wsj.com/business/energy-oil/the-u-s-is-spoiled-by-cheap-canadian-oil-thats-about-to-change-bafe831a
