A common market misconception: Canadian oil has nowhere to go? Take a look at the map and see the distribution of heavy oil refineries in the United States. Venezuela's return to the market certainly changed the situation, but that doesn't mean the North American heavy oil trade structure has collapsed. The refining facilities along the U.S. Gulf Coast were designed specifically to process heavy crude oil—Canadian oil sands crude flows to these locations, and that's where economic fundamentals take hold. Some viewpoints sound eloquent but don't withstand scrutiny; perhaps it's time to focus on other business opportunities. The truth about geopolitical energy policy and market flows is often far more complex than surface-level arguments suggest.
A common market misconception: Canadian oil has nowhere to go? Take a look at the map and see the distribution of heavy oil refineries in the United States. Venezuela's return to the market certainly changed the situation, but that doesn't mean the North American heavy oil trade structure has collapsed. The refining facilities along the U.S. Gulf Coast were designed specifically to process heavy crude oil—Canadian oil sands crude flows to these locations, and that's where economic fundamentals take hold. Some viewpoints sound eloquent but don't withstand scrutiny; perhaps it's time to focus on other business opportunities. The truth about geopolitical energy policy and market flows is often far more complex than surface-level arguments suggest.