QS Energy Inc (QSEP)

[Myrka]

We are not sure what Trans-Canada is doing, we can only guess. If it is near the end of an operational pipeline, they are running a test. I assume they will be collecting the oil at the end of, lets say, a 200 mile stretch of trial pipeline with four skid-mounted (4-pack) AOTs, they will be able to measure what the AOTs can do as the oil exits. If they then take that oil and stuff it back into an extension of the same pipeline without AOT, the initial flow rate will eventually drop as the oil viscosity returns to normal and upon measurement at the other end they will measure a reduced flow rate compared to the section of pipeline with the AOT. The benefit of the AOT will be lost.

In other words, the section of pipeline down line from the AOT will become a bottleneck and the reduced flow rate will back track to the section with the AOT. The oil in that section, even though it is less viscous will flow at the same velocity as the oil in the untreated down line section of the pipeline.

You are suggesting it is an all or nothing: either there are AOTs all the way along, or there are none.

That's a definite YES, unless it is a test and the test is at the end of a pipeline.