| ESTIMATED CONSUMPTION OF CANADIAN OIL SANDS’ SSB PRODUCTION IN 2006 | |
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| MARKETS FOR CANADIAN OIL SANDS' PRODUCTION Canadian Oil Sands markets its synthetic crude oil production to refineries in both Canada and the United States, mostly in the regions shown on the map. For a portion of our sales, we are responsible for the transportation beyond Edmonton and delivery directly to the refinery, while for the remainder the refinery customers take delivery in Canada and are responsible for the transportation costs. With the improvement in the product quality to SyncrudeTM Sweet Premium, we expect some of our traditional refinery customers will be able to significantly increase the amount of our crude feedstock they can process, allowing them to increase the volumes they purchase. This should contribute to an improved net realized price for SSP relative to SSB, reflecting reduced transportation costs as the production would not have to move as far to clear the market. |
NORTH AMERICAN LIGHT SWEET SYNTHETIC CRUDE OIL SUPPLY (bbls per day of productive capacity) Syncrude is the single largest source of light, sweet synthetic crude oil in North America with Canadian Oil Sands representing the largest share of this production. |
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