Western Canadian Select (WCS) is a heavy sour blend of crude oil that is one of North America's largest heavy crude oil streams and, historically, its cheapest. It was established in December 2004 as a new heavy oil stream by EnCana (now Cenovus), Canadian Natural Resources, Petro-Canada (now Suncor) and Talisman Energy (now Repsol Oil & Gas Canada). It is composed mostly of bitumen blended with sweet synthetic and condensate diluents and 21 existing streams of both conventional and unconventional Alberta heavy crude oils at the large Husky Midstream General Partnership terminal in Hardisty, Alberta. Western Canadian Select—the benchmark for heavy, acidic (TAN <1.1) crudes—is one of many petroleum products from the Western Canadian Sedimentary Basin oil sands. Calgary-based Husky Energy, now a subsidiary of Cenovus, had joined the initial four founders in 2015. Western Canadian Select (WCS) is the benchmark price for western Canadian crude blends. The price of other Canadian crude blends produced locally are also based on the price of the benchmark. During the COVID-19 pandemic, many oil benchmarks around the world fell to record lows. WCS dropped to $3.81 U.S. dollars per barrel on April 21, 2020. In June, Cenovus increased production at its Christina Lake oil sands project reaching record volumes of 405,658 bbls/d when the price of WCS increased "almost tenfold from April" to an average of $33.97 or C$46.03 per barrel (bbl). During the 2022 Russian invasion of Ukraine, the price of WCS rose to over US$100 a barrel with the United States considering placing a ban on Russian oil imports. In June, the Western Canadian Select (WCS) benchmark price averaged $64.35 per barrel, which was closely aligned with the year-to-date (YTD) average of $63.09. During the 2025 United States trade war with Canada, the price dropped to C$52.57 per barrel (bbl) as of April 7. In 2023, Canada's total oil exports reached a "historical high" of 4.8 million bpd, with the United States purchasing 192.9 million metric tons that year. In 2023, oil sands extraction contributed over CA$38 billion (1.74% of GDP) and conventional crude oil and gas extraction contributed CA$33 billion (1.52% of GDP) to Canada's economy. In November 2024, the Canadian Association of Energy Contractors (CAOEC) forecasted that a total of 6,604 wells would be drilled in Western Canada in 2025, marking a 7.3% increase from 2023. This level of activity would be the highest in the Western Canadian oil sector since the commodity price downturn of 2014-2015, which resulted in a prolonged period of industry contraction.
Overview Western Canadian Select is Canada's benchmark heavy crude and has historically been the cheapest crude oil heavy sour blend in North America. As of 2024, there are only three corporations—Suncor, CNRL, and Cenovus, all Canadian and all headquartered in Calgary—that produce an estimated 77% of all Canadian oilsands production. Repsol, which was the fourth main WCS producer, was one of many foreign companies and investors who exited the oilsands in 2024. Canada is the primary supplier of total petroleum to the United States. In 2024, Canada's oil exports to the United States were increased substantially partly because of the increased capacity with the completion of the Trans Mountain expansion pipeline. In July and September 2024, Canada exported over 4.3 million barrels of oil per day (b/d) to the United States. In comparison, Canada exported 3.2 million b/d of crude oil to the United States in May 2020. WCS's influence over the crude oil market extends beyond the production of these three corporate giants, as the price of other Canadian crude blends produced locally are also based on the price of the benchmark, WCS, according to NE2, a brokerage and exchange company that handles approximately 38 percent of western Canadian oil production. The calculation of the price of WCS is complex. Because WCS is a lower quality heavy crude oil and is also farther from the major oil markets in the United States, its price is calculated based on a discount to West Texas Intermediate (WTI)—a sweeter, lighter oil, which is produced in the heart of the oil markets regions. WTI is the benchmark price of oil in North America. The price of WTI changes from day to day but actual commodities trading market for crude oil is based on contract prices, not a daily price. The WCS discount on a futures contract for a two-month period is based on the average price of all WTI contracts in the most recent month prior to the WCS contract agreement.
Revenue Husky Energy sold 65% of their Midstream business in 2016 and formed the Husky Midstream General Partnership (HMGP) with two additional partners. HMGP exclusively blends the crude super-stream to ensure a consistent high quality heavy crude product that is demanded by refineries. Since Husky joined the conglomerate, onstream WCS has been blended at the Husky Hardisty terminal (now owned by HMGP). In October 2020, Cenovus acquired the Calgary-based company established in the 1930s—Husky—for CA$3.8 billion.
Major producers
In 2004, Suncor Energy, Cenovus Energy, Canadian Natural Resources, and Talisman Energy (later Repsol) developed the Western Canadian Select (WCS) blend. According to Argus, in 2012 the WCS blend was still produced by only four companies because of the complex set of rules regarding compensate for contributions to the WCS blend. Cenovus and Husky completed a merger by January 2021, with the company operating under Cenovus. Through the merger Cenovus became the third-largest crude oil and natural gas company and the second-largest upgrader in Canada.
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