Unconventional Oil

[Tackler]

More selling out ...

Globe says Husky foraging for more refining capacity

2007-07-16 03:56 MT - In the News

The Globe and Mail reports in its Monday, July 16, edition that Husky Energy says it is on the lookout to acquire more North American refining capacity to process future output from its oil sands projects. The Globe's Norval Scott writes Husky still needs more refining capacity despite its acquisition of Valero Energy's 165,000-barrel-a-day refinery in Lima, Ohio, for $1.9-billion (U.S.) this year. While the company has evaluated many options, including purchasing another refinery or building a new greenfield facility, those appear expensive and Husky may seek to swap its oil sands equity for an interest in a United States refinery, as EnCana and ConocoPhillips did last year, said Husky vice-president Gary Mihaichuk. "Quite frankly, there aren't a lot of refineries for sale, so if you try and buy one the price is really high, considering how well the refining industry is doing right now," he said. "A practical solution may be a joint venture with someone, along the lines of the EnCana-ConocoPhillips deal." Husky expects to extract 500,000 barrels of crude a day from its oil sands operations alone by 2020, with the 200,000-barrel-a-day Sunrise development expected on stream in 2010.