U.S. Gulf Coast crude oil imports from Canada reach record-high volumes (2/27/2019)

The volume of crude oil imports to the U.S. Gulf Coast (Petroleum Administration for Defense District, or PADD, 3) from Canada has increased significantly during the past several years, reaching a record high of 644,000 barrels per day (b/d) in October 2018. Canada’s exports tend to be heavy crude oils, which Gulf Coast refiners are well equipped to process. Increasing volumes of Canadian crude oil have been transported to PADD 3 via rail (a more expensive option than via pipeline) because the existing pipelines have largely reached their capacities. This capacity limitation has created a transportation constraint and contributed to large price differentials between Western Canadian Select (WCS) and West Texas Intermediate (WTI) crude oils. The future levels of crude-by-rail shipments from Canada to the United States and price differentials between WCS and WTI are uncertain, as trade press reports indicate that increased shipping capacity in both rail and pipelines are expected by the end of 2019. ... More »