Shipping Alberta’s fast-rising bitumen production to market through pipelines or on insulated rail cars depends on sufficient supplies of diluent, a variety of light hydrocarbons that, when blended with molasses-like bitumen, reduce the viscosity of the resulting mix. The problem is, in-region production of diluent — an economically favorable alternative to pipeline imports from the U.S. — has been growing more slowly than it was a few years ago, and increased demand for imported condensate could result in those pipelines being maxed out. In today’s RBN blog, we delve into what may be behind the slowing pace of Western Canadian diluent production and what the implications might be.
Not What I Had in Mind – Are Canadian E&Ps Struggling to Meet the Rising Need for Oil Sands Diluent?
