Cochese
307 posts


🚨Debunking the “U.S. buys Canadian oil at a discount” myth.
This claim implies deliberate U.S. exploitation.
In reality, it’s standard market dynamics: crude quality, refining costs, and logistics—not a rip-off.
Western Canadian Select (WCS) heavy crude currently trades at about $12–17/bbl discount to light, sweet West Texas Intermediate (WTI), fluctuating with global events.
Why?
1. Quality & refining costs
WCS is heavy and sour (high-sulfur). It requires extra processing (cokers, hydrocrackers, desulfurization).
Is the US expected to provide these services for free?
U.S. Gulf Coast refineries invested billions to handle such grades efficiently.
The discount compensates for those costs & lower product yields.
2. Limited market access
Most Canadian heavy oil is landlocked and flows via pipelines to U.S. refineries best equipped to process it.
With only one dominant buyer (U.S. refiners who can source alternatives like Mexican/Venezuelan heavy crude), supply & demand sets the price. Canada has fewer immediate options.
✅The solution:
More tidewater access and diversified buyers for real competition.
There has been some progress:
Trans Mountain Expansion (TMX, operational since 2024) added Pacific routes to Asian markets, narrowing the average discount by about
$3–5/bbl & generating billions in extra industry revenue.
More export capacity = better pricing for Canada. But left wing parties & environmentalists have blocked these developments.
Bottom line:
This is fair market pricing driven by quality, geography, and infrastructure not exploitation.
Further diversification would shrink the gap. U.S. officials, have repeatedly expressed support for Canada gaining better tidewater access to sell globally.
Strong North American energy partnership benefits both nations.
Facts over myths.
🇨🇦🇺🇸
Not an economist or industry expert, so feel free to correct or add anything.
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@cecile_shaw8 The Complexity Advantage: Because the US invested heavily in complex refining equipment over the decades, they can take a thick, heavy, lower-value input and turn it into highly profitable, finished petroleum products like gasoline and jet fuel.
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@cecile_shaw8 High-Margin Exports: By using cheap Canadian heavy crude for their own domestic energy needs, the US can export their own premium light crude to other countries (like in Europe) for top dollar.
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@cecile_shaw8 The Refining Arbitrage: US refiners can buy Canadian heavy crude at a significant discount (often \(\$10\) to \(\$20\) less per barrel) compared to lighter crudes.
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@cecile_shaw8 while its massive refineries (especially in the Midwest and Gulf Coast) are specifically built to process "heavy" crude.
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@cecile_shaw8 Fact. It is highly profitable for US refiners to process Canadian heavy crude because of a massive mismatch in supply and demand.The US mostly produces "light" shale oil (e.g., from Texas)
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@cecile_shaw8 @Bitcoin_Teddy Is the Canadian trade surplus mainly attributed to the oil imports to the US? Yes
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Being indirectly subsidized is a hard pill for many to swallow, especially leftists.
Does the US indirectly subsidize Canada?
Did Canada under invest in their military & fail to make NATO commitments for decades?
YES.
Does Canada fail to contribute to keeping global trade routes open? YES
Does Canada fail to contribute to global pharmaceutical & medical R&D?
YES
Are these burdens disproportionately put on the American taxpayer?
YES
For decades, did Canada maintain protectionisms, tariffs and non tariff barriers such as dairy supply management & softwood lumber that restrict US products & services or prices them unfairly? YES.
Have previous US administrations repeatedly tried to fix these issues more diplomatically only to be ignored for the most part? YES
Did Canada violate the USMCA and take US booze off the shelves?
YES
Did many Canadian elected leaders advocate to buy Canadian and boycott America?
YES
Did all 3 countries agree to the USMCA agreement including its national security clause?
YES
Did the U.S. violate the USMCA and tariff USMCA compliant goods?
NO.
Maybe swallow the hard pill that America has indeed indirectly subsidized Canada and many other countries, like a State, for decades.
Instead of being a typical Liberal with TDS, reacting with emotion, ramping up “annexation threats” and responding arrogantly, maybe take some accountability & express some gratitude.
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@cecile_shaw8 @Bitcoin_Teddy Does the US get a discounted (subsidized) on Can Oil? Yes. Does the US profit from Canadian discounted oil? Yes 15-18 dollars per barrel. How many barrels a day does US import? 4M per day. How much does the US profit each day? 60M. How much dos the US profit each year? 21.9 B +-.
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@MikeUnfazed @Tablesalt13 @Smooth1BC If I had so much anger, I would see someone. Someone that would not cost me anything. Yes I pay taxes but it is well worth it. I don't get angry over little men with a superiority complex. Bring that topic up next time you talk to you therapist.
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@13th_Vorenus @Tablesalt13 @Smooth1BC Bro free healthcare my ass that’s a cool little but look at the tax’s you idiots pay to pay for it either way your paying lol stupid ass people!
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@MikeUnfazed @Tablesalt13 @Smooth1BC Are you okay? You need seek some professional help. Some anger in your message. Perhaps it is caused by the Trader Joe's Lobotomy. I would ask for your money back.
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@MikeUnfazed @Tablesalt13 @Smooth1BC We have free health care as well. It seems like you needs some kind of free medical intervention with all your gibberish. Perhaps you had a do it your self lobotomy (Trader Joe's two for one special?). Thoughts and prayers to you and your family.
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@13th_Vorenus @Tablesalt13 @Smooth1BC More reason for us to take your country lol the more y'all talk the more I feel its needed!
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@Tablesalt13 @Smooth1BC Stop buying Canada's energy and you will have a massive trade surplus.
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@Smooth1BC Were not taking anything.
youre buying our cheap oil. Thats it. Thats the trade deficit.
Simply stop buying our oil, and POOF, you have a trade surplus.
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@Tablesalt13 @Smooth1BC Natural gas: In 2020, Canada supplied 98% of the United States' natural gas imports.
Uranium: In 2020, Canada supplied 28% of the United States' uranium purchases.
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@Tablesalt13 @Smooth1BC Crude oil: In 2022, Canada supplied 60% of the United States' gross crude oil imports. In 2023, almost all Canadian crude oil exports went to the United States.
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@spittinchiclets … Do you want to see something super cool that only three people have ever seen in their lifetime? Pretty recognizable signature - Randy Jackson … from American Idol.
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@d_foubert Local Auto Glass Repair Shop finds this a more effective method then distributing Flyers.
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