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The Alberta Oil Sands: Reserves and Supply Outlook<br />

Figure 4.7 . Existing and proposed major crude oil pipelines (Plate 7).<br />

( Source : EUB, ST98-2007 [1] )<br />

Ontario, the US Midwest or Petroleum Administration Defense District (PADD)<br />

2, the northern Rocky Mountain region (PADD 4), and Washington state.<br />

According to the US <strong>Energy</strong> Information Administration (EIA) statistics, as of<br />

1 January 2007, PADD 2 has an operating refinery capacity of 3582 Mbpd; the<br />

operating capacity of refineries in the PADD 4 is 598 Mbpd.<br />

In March 2006, Enbridge announced that the first western Canadian crude oil<br />

was delivered through its Spearhead pipeline to Cushing, Oklahoma. The oil being<br />

delivered to Cushing travels 2520 km through the Enbridge mainline system from<br />

Edmonton, Alberta to Chicago, Illinois, before entering Spearhead pipeline for the<br />

final 1050 km to Cushing. Spearhead traditionally operated in the opposite direction<br />

from Cushing to Chicago. Spearhead pipeline has a capacity of 125 Mbpd,<br />

equivalent to roughly 10% of Alberta’s bitumen production in 2006. Shipments<br />

on the Spearhead pipeline have increased steadily, with nominations exceeding<br />

capacity in some instances. Enbridge is currently soliciting interest in the potential<br />

to expand the Spearhead pipeline by 65 Mbpd. If shipper interest greatly exceeds<br />

the expansion capacity, Enbridge will evaluate a further expansion.<br />

Alternative markets for Alberta bitumen and SCO will primarily come from<br />

areas where refineries are searching for new feedstock as their traditional<br />

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