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REFINING BITUMEN: COSTS, BENEFITS AND ANALYSIS

Refining Bitumen: Costs, Benefits and Analysis

Study Released February 03, 2015

Study No. 145

With bitumen production slated to increase over time and given current discount of Canadian crudes against other global benchmarks, there has been a question about why Alberta has not constructed upgraders and refineries to capture more value added potential. To answer this question CERI undertook a cost-benefit analysis (CBA) with a focus on highlighting the welfare impacts on society for the proposed project being evaluated. These impacts include market and non-market costs and benefits, which in turn include what are often categorized as economic, social and environmental impacts. The study determines under which conditions refining make economic sense and under which conditions it does not.

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