Oilpatch Plans More Refining In U.S.

"I expect the refiners will make something happen." Earlier this year, Calgary-based EnCana partnered with ConocoPhillips to supply refineries in Illinois and Texas with Alberta oilsands and chief executive Randy Eresman said his company would consider more deals with big U.S. refiners to process oilsands. "We could consider a deal with another party, whether it's in Western Canada or in a refinery in the U.S.," he said. "Everything is on the table." Alberta producers are increasingly looking to move raw bitumen into the U.S., citing high production costs in Canada. But the idea is sensitive in Alberta, as political leaders look to increase processing in the province. "We want value-added, meaning we want as many jobs in the province of Alberta," said Guy Boutilier, Minister of International, Intergovernmental and Aboriginal Relations, and the MLA for Fort McMurray. He said there is no magic answer to the issue, but keeping taxes low is one way to continue refining oilsands in Alberta. "There is bitumen leaving Alberta, there always has been, and we recognize that. But the majority of it we want it to continue to be (processed) here in Alberta," Boutilier said In September, before being elected premier, Ed Stelmach said Alberta should stop energy companies from moving the raw product stateside to ensure the province fully captures the value of its massive oilsands resource. "We don't need to worry about Ottawa raiding our resources if we are just going to give it away ourselves," he said at the time. http://www.canada.com/calgaryherald/story.html?id=d6fd7cc0-231f-4c4f-bebd-daa53d80134e&k=5385

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