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Linn Energy, LLC Message Board

  • rlp2451 rlp2451 Dec 19, 2012 5:07 PM Flag

    OT: NTI

    Should do very well since they are able to buy Western Canadian Select at $48/barrel and not even use Bakken oil.

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    • Perhaps people should check to see what oil they are buying TODAY and not what they were buying six weeks ago.

      • 2 Replies to rlp2451
      • Oh, perhaps.

        And....where did you check and what did you find out?

        Did you check?
        did you just think it was a helpful suggestion again?

        Why do you think that you know better than they do, about how they should run their business?

        Here is some info what they have been doing:

        "Meanwhile, Northern Tier offers most direct way to play Bakken and Canadian crude oil differentials amongst independent refiners. Approximately 100 percent of its crude oil feedstocks are leveraged to discounted crudes.

        "During 2011, the company’s feedstock slate consisted of 49 percent Bakken light, with the balance comprised of Canadian Syncrude and Western Canadian Select.
        “For the balance of our forecast horizon, we estimate this mix to be roughly 60% Bakken, 20% WCS, and 20% Syncrude,” Weiland said.

        The very wide differentials for Canadian heavy and Bakken crudes vs. LLS Gulf Coast crude suggest upside to 4Q. Over the course of the next few years, infrastructure should reduce these spreads but the simple fact remains – it is expensive to ship Canadian/Bakken crudes to market even by pipe. Add the advantage of complexity (NTI processes up to 28% Canadian heavy) and the energy cost advantage from cheap natural gas and this suggests a strong free cashflow profile."

      • I am an advisor and you both are right. They do both because the article i read recently said they are doing both. The other reason why limit yourself to just 1.

    • But they do refine Bakken crude....and......45,000 barrels of it per day.

      And, you would know that if you took the time to hear them discuss it.

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