Crude Oil Quality Association
Canadian Crude Oil Quality Subcommittee
February 23, 2006

Bill Lywood of Crude Quality Inc. - CrudeMonitor.ca will be continuing in 2006, but will also have to evolve in 2006 from its current focus. The website and data sets will necessarily need to co-ordinate with the newly instituted Incentive Tolling Agreement between the Canadian Association of Petroleum Producers (CAPP) and Enbridge Pipelines. Members of the COQA are encouraged to visit Enbridge's website and review the Incentive Tolling Agreement (http://www.enbridge.com/pipelines/about/incentive-tolling-agreement.php), in particular the sections on crude quality "Service Metrics", wherein CAPP and Enbridge have negotiated a platform of monetary incentives for increasing quality consistency. Though perhaps not perfect in structure, this incentive tolling agreement is a "Canadian first" with respect to including quality measurement and consistency incentives for parameters beyond density and sculpture. COQA member's input on the successes and shortcomings of the Enbridge Incentive Tolling Agreement would surely assist in developing the next generation agreement with Enbridge as well as agreements with other transportation companies shipping Canadian crudes. 

 Crude Monitor.ca operates as an industry service, sponsored through the Crude Oil Committee of CAPP. If you have found value in the service, please let your Calgary office know. If not, please let me know at lywood@crudequality.com so that we can make it better. We remain open to your suggestions for improvements, and to your questions regarding western Canadian crudes. 

 The Canadian Crude Quality Technical Committee (CCQTA) has a more technical, project oriented operation than does CrudeMonitor.ca, and has a wide array of projects underway and in development related to western Canadian crude quality issues. Their website, www.ccqta.com, can provide you with background and contact information.

 The Canadian crude production future is in a dramatic growth phase, from offshore Atlantic to western oilsands. There are many approved and pending pipeline projects underway to export from, and manage volumes within, western Canada (Spearhead, Southern Access, Trans Mountain TMX, Gateway, Waupisoo, Keystone, Express/Platte expansions, to name a few), White Rose is now online off Newfoundland, new oilsands projects have been announced and are pending, new upgrader announcements have been made, and a host of other activities. All this pipeline activity in western Canada is in anticipation of increased production of crudes, synthetics, and upgraded commodities. The outcomes remain clear, and production is expected to rise from 2.2MMbpd in 2005 to 3.2MMbpd by 2010, and 3.9MMbpd by 2015. Contact www.capp.ca for more information.

 Ron Fisher of BP – The National Centre for Upgrading Technology (NCUT) has initiated a project to create a technical resource to address anticipated and identified processability issues associated with producing and refining oilsands bitumen.  Details of this NCUT project are attached.

NCUT Project  - View this Document**
**(Requires free Adobe Acrobat Reader)

 Ron also update the Canadian Subcommittee on CCQTA’s projects, which include Heavy Oil BS&W, Phosphorous in Crude, TAN Project, NGL Contamination, Heavy Oil Emulsion Viscosity, Heavy Oil Manual, and Additive Impact.  Details of these projects can be found on coqa-inc.org.