Cushing

It takes crude oil from California.

Hardesty Canada to the US border, and then from the US border takes it down to Guernsey, from Guernsey into Cushing, from Cushing down to the Gulf Coast.

It's actually four separate segments of the pipe that's owned by some combination of Southbow, which is formerly TC Energy, and Bridger Pipeline.

Effectively, it's doing a similar thing.

That we, you know, prior to the start of the Trans Mountain expansion, which is the pipeline that leads west from Alberta to the Canadian West Coast, straight to Asia.

Prior to the start of that, we saw more and more oil going to the United States from Canada, but those barrels were increasingly being re-exported from the U.S. Gulf Coast, which is a pretty strong sign that there isn't really strong demand immediately beside the place it's being exported.

So the first question is, where do we stand on that balance of kind of heavy crude demand in North America? Where is it? And does the prairie link to bridger expansion to the link to Cushing and down, Does that change the story at all? I know, for instance, it gives us a little bit of extra access to, say, the Wyoming market or some of these other regional markets in Pad 4 in the mountain region.

But talk me through what this pipeline does and if you think it kind of makes primary commercial sense in the current market.

You know, these have been the very contentious, you know, hot topics, you know, over the last decade, like we alluded to.

The first of the large greenfield expansions is the Prairie Connector Bridger Line, which runs from Hardesty, Alberta, so near Edmonton, down towards Cushing, Oklahoma.

So that's a 550,000 barrel a day line.

And then the second greenfield line is the West Coast oil pipeline.

For physically delivered stuff, that's actually becoming less and less relevant as the hubs become less and less relevant And the commodities community becomes more and more global.

Like for WTI, if it was just a sort of pad three, meaning like sort of South and Midwest type market, then yeah, Cushing, a storage hub in Cushing, Oklahoma with a bunch of storage tanks is like a very useful place.

physical transshipment location into which you deliver product and out of which you draw it.

But that's kind of not that relevant anymore.

Well, WTI is West Texas Intermediate.

It's a light, sweet, crude, and it's based on prices at Cushing, Oklahoma.

It is a landlocked market in terms of production and that pricing venture.

Brent comes from the North Sea oil, and that's also a light, sweet crude.

The SPR now stands at 286.6 million barrels in total stocks.

In Cushing, Oklahoma, the oil hub stocks grew by 100,000 barrels.

to 22.5 million barrels total now the retail price of gasoline averaged four dollars and seven cents nationally and the diesel price averaged five point five dollars and fifty nine point nine cents uh per gallon now the us continues both importing crude oil and exporting refined products with record gasoline and diesel prices and brent crude trading above 100 an arrow $100 a barrel, all eyes are on the Strait of Hormuz conflict.

Now, the SPR draw has declined to about 3 million barrels per week, a level sustainable for the foreseeable future.

Well, WTI is West Texas Intermediate.

It's a light, sweet, crude, and it's based on prices at Cushing, Oklahoma.

It is a landlocked market in terms of production and that pricing venture.

Brent comes from the North Sea oil, and that's also a light, sweet crude.