As production of Canadian bitumen and synthetic crude oil expands, North American refinery feed slates enter new territory in terms of crude oil quality The incentives for processing Canadian bitumen and synthetic crudes are clear in terms of a more secure supply and a significant price discount compared to conventional crude oils of similar API gravity and sulphur content. On the other hand, the challenges of moving to an increasing percentage of Canadian crude oil differ from those the refiner would face with most conventional crude oils. Much of the new production consists of heavy bitumen diluted with synthetic diluent, heavy bitumen diluted with condensate, or heavy bitumen upgraded to synthetic crude. The unique characteristics of these blends usually mean that conventional refineries can only process them as blends with other conventional crude oils, making it harder to evaluate their effect on refinery operations.
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