The "Enbridge Pill"

 

This discount is expected to decrease in Q2 of 2013 as refineries go online. However, the biggest decrease will occur once Enbridge (NYSE: ENB) completes its two projects in 2013: the Seaway expansion and the "light oil access program." To me, these projects are game changers. The Seaway pipeline expansion from 150,000 bopd to 400,000 bopd will be completed in Q1 2013, and there is a twin line planned for 2014 that will further boost capacity to 850,000 bopd. This project will primarily narrow the spread between WTI and Brent, as it will increase the flow from Cushing, OK to Gulf Coast refineries. However, an increase of the WTI price will partly pass on to the Edmonton price too.