you, Thank Dan.
drivers pricing with There determine at which start at Let's two critical price Hardisty. are Hardisty.
a compete to And with First ultimately, then shipped the is the in that what's have the to get Hardisty happening heavy sour the competing barrels to Coast, Canadian and from Gulf Gulf Gulf unique we'll are secondly, alternative are Coast into alternatives. macro. Coast drivers
we've the alternatives Coast. So The starting this increasing drivers, been in SPR material Gulf Coast prices the in releases about talked have by impacted negatively Gulf with recent simply which past. competing have
these with alternatives. as heavy released are burdened with Canada the are sour crude then Gulf competing in Coast, So the from supplies those
significant improvements will end Fortunately, end values at the planned and the that see we at year, the SPR as point. should on releases, of at today least
there driven for event, late well. couple in There's Gulf been as both those in both lower year demand, turnarounds which in unplanned events have a uniquely negative the and the on here supply price the continent Gulf this a that to addition impact has have increased values things been and the mid naturally unaccounted have Coast other Coast. In of
the return extra Of sour with crude. with to that and course the heavy this the finally account required first hydrogen heavy refinery that crude demand into relative heavy back helped are balance. is year upgrading discount barrel very both then this prices burden, and sour get prices of after crude extra things to high. globally take upgrading feedstocks of And gas into And sour high demand, the net the sweet high cause crude very, costs, will
critical balances Finally, the second driver, the is you critical course, of key key driver, to the need candidate.
alluded his are to Canadian as crude and remarks, balances in transition. Dan opening So, in
bit take let's step So that. talk a a back about and little
currently levels. to XXXX a the Canadian for to estimated That's barrels to a Canada million U.S. today into has still year day, Canadian prior responded, greater production because and compared than supply balance have supply is pre-COVID the greater low and than pre-COVID materially. the this a As grow responded and aggressively reminder, is producers significant, which levels is levels, XXXX of
than drive we're greater sour a supply where will likely transitioning in be up egress where macro will return and move to heavy by to story So incentives prices capabilities to Canada will that rail.
producers terms curves customers are look in or what guidance, forward at And also the two and of market As than that of at that is what our what current function that, ideas of we a their nothing you at look terms a reflects to naturally will the they in curve, if macro what check of we look of providing will curve consumers, think telling see naturally, producing their be you things. market the a in more values what be. story can us. as that forward production. And forward the is ideas And future the
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lot a supply Canada. a factual lot story. related in that there's from a And market occurring of this up reflecting support So of are changes support these naturally factual standing, to there's
we means about and of that asset. growing industrial our naturally As and in Hardisty both about our most I that sour our Hardisty. of then and is logic listeners assets, Canada, Stroud talk we think remind heavy production production And into about the our to to when business what gathered want produced
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the positioned demand uniquely from capability is for takeaway supply a and where greater as to benefit occurs grows, asset to than that transitions naturally pipe Hardisty So that. egress and our industry is rail
use As world hub we hub it's Stroud in specifically secondly, refined about have Coast which WCS to to to pipelines hub our refineries. U.S., U.S. MID the talk pipe transportation And is got largest then a refined Continent. adjacent Gulf Cushing and the solution. your the than in in capacity, and more as costs, connectivity crude oil. for support. tanks and coast And from reminder, as Cushing, of related and the you is should located crude is the service any majority means That that the access the Stroud. provide U.S. hub, is network advantage, the access the It provides Cushing other Gulf the mid-continent
critical think two will assets benefit of occur are from our transition Canada to this we uniquely that So positioned think XXXX. in up first half we
And advantage advantages EH&S as given relative quality, to ESG ultimately to it that significant which competitiveness versus assets, of partnerships little that ensure DRU important alternative. alternative the our a railroad leads allows about drivers talk the competitive the investment, value product egress the most the cost customers the the as That's and we saving our driven about well. that experiences reminder, customers right a Let's efforts, DRU the are and are our egress set competitive talked would DRU alternatives. capital commercialization their just environmental rates things a of a chain I've is size, in also for solution bit the then egress to the critical critical DRUbit is what competitiveness commercialization update. that the Naturally, The by tailwind be with the primarily solution. to are, has do our key versus but what scalability they to to the have provide the rail by sense
network in and heavy we Gulf Port to provides are refiners advantages Coast, which blending alternatives our to custom Finally, that the alternatives, unique have access Port value advantages pairing Arthur. given to Arthur sell distribution, export
So the driven, the solution not egress relative to alternatives. advantage because macro DRUbit times and all given make to advantages, sensitive again, rail story, we're advantages these these solution by at
strong new to and X our be more soon purpose hope supporting something solution. and announce our Phase on customers, existing are maybe and egress very growth discussions potentially able to We in with this discussions
set Clean opportunity our comment Finally, on broad. in The initiative. I like to very is this briefly space Fuels
destination be our focused example where We at markets. asset California terminals. would but existing downstream Colton through CI of specifically are are renewable on not low that we diesel, the An the California biofuels ethanol into West in only putting
terminalling diesel addition, and focused the to oil production in on bringing required renewable as like things that, In infrastructure to support we're traditional support these treatment RD required. from gathering to refiners production, refining transition businesses like feedstocks opportunities feedstock things are vegetable from and
business supporting customers have the potential naturally And and that unintended finally, specific of to there. And so consequences discussions, policy. in we're ongoing with then discussions are very there
Canada. and focus includes we And being crushing our creating on we're incentives, and and Naturally work the railroads. mill that follow everything with priorities, our who partnering and Pac driving veg very oil with and policy success our for options focused today minimally drive we a development demand and that One export decide and do And our opportunities. to facilities California, collectively critical and [ph] is and to feedstock. need creating with refiners where creating we're like here, of Northwest that byproduct crushing the those closely the to those facilities, for them
in space pass successes that, forward to this with to with back So we Dan you I'll look it soon. we have sharing you.
