It’s no secret that Canada is importing more and more U.S. oil. Some of that is coming from the Eagle Ford.
In the first quarter of 2013, the U.S. sent almost 100,000 b/d to refineries in Canada. The reality is the U.S. is much close and can supply oil at more competitive rates than places like western Africa.
San Antonio based Valero has a 235,000 b/d refinery in Quebec and as of May had sent one shipment to test how well the refinery can process Eagle Ford barrels. Results were positive, so its likely more crude will be heading north.
It’s really pretty amazing what has happened. Gulf Coast refineries have been preparing to take heavy crude, like those produced in Canada, and Canadian refineries are better suited for light crudes, like those produced in Texas.
Valero plans to start shipping Eagle Ford crude to its Quebec refinery on a more consistent basis in the second half of 2013.
Read more at mysa.com