Western canadian Select

Hits all time low sitting at around $12.00 what does this mean going forward for the future of Canada and Alberta more specifically. What is driving this differential to be so large? Is the USA laughing at Canadians faces for the immense discount they are getting at these prices?

Who has thoughts to provoke a discussion on this?

 

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I'm not really up on my WCS knowledge, I do know it's a heavier bitumen product that has trouble being transported in pipelines. Combine that with the lack of pipelines in Canada, plus everything it has to go through in the refining process to make it " palatable", I can see why there is such a price difference.

One has to ask , are the production costs worth the returns? Companies can only forward debt for so long before it catches up to them.

I did find this in the Economist.

https://www.economist.com/the-economist-explains/2018/11/27/why-is-albertas-oil-so-cheap

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