Nathan Ritchie & Cera Dixon:
Drilling Down, Ep 3: Not all oil is created equal
The price of oil is not one universal number. In Episode 3 of Drilling Down, Cera and Nathan look at the commodities behind the numbers, and why the type of crude a company produces can change its revenue, cash flow and margins.
In this episode, you will learn:
- What light versus heavy crude means, and how API gravity and viscosity affect value
- What sweet versus sour means, and why sulphur content matters to refiners and to producers
- How Canadian oil compares with benchmarks like Western Canadian Select, Brent and WTI
- How crude oil becomes gasoline, diesel, jet fuel and everyday products
- What the crack spread is and why it is in the news
- Why WTI is not the price your company actually receives, and how differentials and transportation costs get you from WTI to the real number
- How changing politics and refinery disruptions can shift the value of heavy and sour oil
Missed the earlier episodes? Episode 2 on production and reserves, and the rest of the series, are available on our Substack and at the Schachter Energy Report website
