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HEAVY BARREL COMPETITION IN THE US GULF COAST: CAN CANADIAN HEAVY BARRELS COMPETE?

Heavy Barrel Competition in the US Gulf Coast: Can Canadian Heavy Barrels Compete?

Study Released May 06, 2016

Study No. 157

Market access for oil production includes available refinery capacity for Canadian heavy oil exports to the US. Canadian heavy crude oil competes for market share in the US Gulf Coast (USGC) with heavy crude oil from Latin American producers, mainly Mexico and Venezuela. Over the past 10 years, heavy crude imports from Mexico and Venezuela have decreased leaving space for Canadian producers to establish a new market share in the Gulf. If oil sands could displace most of the Mexican and Venezuelan imports, the opportunity for bitumen blends and heavy oil would be about 1.5 MMbpd. CERI’s latest study reveals the dynamics of the US Gulf Coast refining sector and how much Canadian heavy crude oil can be exported to the USGC. Success in this competition is important for the long term economic health of the Canadian heavy oil industry.

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