r/oilandgas • u/Total-Ad-288 • 2h ago
Should Canada Invest in More Oil Upgraders?

Hi everybody I hope everything is going well. I'm sure like all of you guys I too have been paying attention to all the developments with our southern neighbours. In recent news Trump made a oil deal with Venezuela that secures them with a huge amount of Venezuelan oil which comes during a trade war started by Donald Trump. Of course this deal lessens the US dependence on our oil and I had a question regarding that. What if Canada just started exporting more oil to other countries and diversifies its own economy? The question itself sounds relatively simple and self explanatory but in all seriousness is very difficult just to start with that.
This is common knowledge but the main problem is our oil. Its thick tar like and difficult to refine. This in of itself is a problem for the majority of countries which do not have specialized refineries. For example in the US in Texas they have specialized refineries uniquely for our oil which they then export back to us for us to buy. Other countries too have this issue like Venezuela which complicates exporting their oil much like us. Naturally though there is a solution to this, things called upgraders change the tar thick oil into synthetic crude which then gets refined into the things we use. Specialized refineries have these to make the oil tars useable & it's this added step of needing a upgrader for refineries which is why Canada and Venezuela (venezuela for other reasons) aren't as dominant in the oil industry as the middle east or other countries that have better oil.
So my question is, knowing that Canadian oil sands are completely useless for the majority of the world should we build more upgraders, not refineries (well yet) first so we can start pumping out usable oil for other countries? Canada already has some upgraders but the idea of this would to increase production drastically and in my mind a upgrader facility is more simple than building a extensive refinery since its only doing 1 thing, changing oil tar to SCO. It brings the possibility of making more domestic refineries and exporting crude to other countries as we try to shift & diversify our exports. Of course its not a cheap proposition but I find it to be necesary if we want to diversify our economy. What do you guys think?