TransCanada Corporation (USA) (TRP): Can These Ohio Players Save Canadian Oil Sands?

According to Gulfport Energy Corporation (NASDAQ:GPOR), an average well in this part of the play generates about 36% condensate, with the remainder being natural gas liquids or dry gas. For this part of the play to really pay off, it will need to find a market for all that condensate. Since there isn’t a lot of condensate processing in the region, one of the most financially lucrative options would be to ship it up to Canada as a blending agent for crude.

One midstream company is wise to this idea and has plans to be the connection. Enbridge Inc (USA) (NYSE:ENB)‘s Alberta Clipper and Southern Lights project currently delivers about 180,000 barrels per day of condensate from Chicago to Alberta. The company plans to expand that capacity to 275,000 bpd to accommodate the needs of Canadian oil sands and the abundant amount of condensate from places like the Utica.

What a Fool believes
When Suncor Energy Inc. (USA) (NYSE:SU), the largest producer of oil sands, is shelving oil sands projects, you know it’s hard to make a Loonie in the Canadian oil sands business right now. For investors, there has been very little love on this roller coaster as of late. Hopefully, regions like the Utica will be a good luck charm and will help to resolve some of the operational woes for the region. Then all oil sands advocates will need to do is deal with is find a market that will buy its product. Gulp.

The article Can These Ohio Players Save Canadian Oil Sands? originally appeared on Fool.com and is written by Tyler Crowe.

Fool contributor Tyler Crowe has no position in any stocks mentioned. You can follow him at Fool.com under the handle TMFDirtyBird, on Google +, or on Twitter, @TylerCroweFool.The Motley Fool has options on Chesapeake Energy.

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