Canadian bitumen stands poised to expand to US markets

Increased pipeline movement of raw bitumen production from Canada to the US could mitigate North America's vulnerability to crude supply disruptions and require expansion of existing pipelines or construction of new pipelines.As discussed previously (OGJ, Oct 28, 2002, p. 64.) and in a recent report issued by Canada's National Energy Board,1 Western Canada has substantial heavy crude oil and bitumen resources. The earlier article also commented on diluent availability and implications of constraints in diluent supply and pricing on pipeline transportation costs.Recent months have seen various announcements relating to existing plans or new proposals for bitumen production in Alber...

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