Heavy Crude Constraints in Canada

In Canada, crude prices have fallen in past months as pipeline bottlenecks and limited rail availability have caused supply constraints. Oil inventory has led to a situation where supply is exceeding transportation capacity, and oil sands production is continuing to rise. When capacity is reached, one option for crude transportation is the use of rail. Rail use for crude transit, however, can be difficult to secure and expensive. Additionally, the use of rail introduces several potential safety concerns from rail operation to spill potential.

In these pipeline-constrained scenarios, the use of  drag reducing agents (DRA) is an optimal consideration. LSPI commercialized a DRA specifically designed for use in heavy crude oils ten years ago, and has a wealth of technical knowledge. We are working hard to provide heavy oil DRA solutions to help pipeline companies cope with increasing throughput demand.