Go Back   This Blue Marble, a Global Current Events Discussion Forum > Main Floor > Economy > Investing for Peak Oil

Investing for Peak Oil Surviving Peak Oil financially is a problem we will all confront sooner or later.

Reply
 
Thread Tools Search this Thread Display Modes
Old 02-06-2012, 01:36 PM   #1
Sonny
Star Witness
 
Sonny's Avatar
 
Join Date: Aug 2008
Location: the safe house
Posts: 5,656
Blog Entries: 1
Thanks: 1,718
Thanked 695 Times in 461 Posts
Default Canadian Heavy Crude $30/bl cheapet than WTI

Canadian heavy crude differentials began to slide two days ago, falling from the low $20s a barrel under benchmark West Texas Intermediate to as much as $32 a barrel under WTI on Friday.(2/3/12)
Traders of Canadian crude had chalked up much of the deepening discounts to booming production in western Canada and no growth in pipeline capacity to major markets such as the U.S. Midwest.

http://www.cnbc.com/id/46255725/UPDA... nery_for_work

BP Plc has shut one of two gasoline-making fluid catalytic cracking units at its 405,000-barrels-per-day (bpd) refinery in Whiting, Indiana for unplanned work.

The Chicago cash gasoline differentials surged 6 cents per gallon on news of the shutdown.

The BP Whiting plant is undergoing a $4 billion upgrade to expand its ability to process heavy Canadian crude.
!

Sonny is offline   Reply With Quote
Old 02-06-2012, 11:26 PM   #2
dharma
Git it, booger.
 
Join Date: Sep 2008
Posts: 5,460
Thanks: 931
Thanked 2,254 Times in 916 Posts
The shrinking light-heavy spread is killing the gulf coast refiners. This Canadian situation must indeed be a consequence of poor takeaway capacity. We are seriously in danger of losing our ability to service our own fuel needs in this country because refinery capacity continues to be taken off line (and, increasingly, that's a permanent move). Another crown jewel of American industry going the way of the dinosaurs; meanwhile, gasoline prices go through the roof.

Killing Keystone is nuts. Obama is an idiot. But I repeat myself . . .
dharma is offline   Reply With Quote
Old 02-07-2012, 12:38 AM   #3
Sysiphus
Senior Level 6
 
Sysiphus's Avatar
 
Join Date: Aug 2008
Location: Seattle
Posts: 8,323
Thanks: 600
Thanked 1,627 Times in 955 Posts
But oil is fungible, right
__________________
Quis custodiet ipsos custodes?
Sysiphus is offline   Reply With Quote
Old 02-07-2012, 04:25 AM   #4
Ought Six
Lifetime Level 3
 
Ought Six's Avatar
 
Join Date: Oct 2008
Posts: 35,164
Blog Entries: 15
Thanks: 180
Thanked 392 Times in 328 Posts
Arrow

Quote:
Originally Posted by Sysiphus View Post
But oil is fungible, right
Very heavy, 'sour' crude is the exception, because there are so few refineries capable of dealing with the stuff. More will be coming on line in the years ahead, but they will be in China.
Ought Six is offline   Reply With Quote
Old 02-07-2012, 11:51 AM   #5
dharma
Git it, booger.
 
Join Date: Sep 2008
Posts: 5,460
Thanks: 931
Thanked 2,254 Times in 916 Posts
Quote:
Originally Posted by Sysiphus
But oil is fungible, right
Not if you can't move it. Very few supertankers serve Alberta.
dharma is offline   Reply With Quote
Old 02-07-2012, 12:06 PM   #6
Potemkin
Omne ignotum pro magnifico
 
Potemkin's Avatar
 
Join Date: Aug 2008
Posts: 27,660
Blog Entries: 3
Thanks: 109
Thanked 5,330 Times in 2,673 Posts
If things keep up, it is going to be economically feasible to refine that sour crude right there in Canada.

Brand new modern high capacity refinery, low transportation costs. Maybe throw in a generating plant right there to use the left over byproducts.
__________________
“The price of freedom is the willingness to do sudden battle anywhere, any time and with utter recklessness.”
― Robert A. Heinlein, The Puppet Masters

Last edited by Potemkin; 02-07-2012 at 12:38 PM.
Potemkin is offline   Reply With Quote
Old 02-07-2012, 12:17 PM   #7
Dietrich
Niche player
 
Dietrich's Avatar
 
Join Date: Jun 2011
Posts: 2,049
Thanks: 347
Thanked 742 Times in 420 Posts
US consumption of oil at 16 year low (17.6mbpd)
Dietrich is offline   Reply With Quote
Old 02-07-2012, 08:38 PM   #8
DBA
Member Level 2
 
Join Date: Aug 2008
Location: Sturgeon County, Alberta
Posts: 281
Thanks: 31
Thanked 12 Times in 10 Posts
Quote:
Originally Posted by Potemkin View Post
If things keep up, it is going to be economically feasible to refine that sour crude right there in Canada.

Brand new modern high capacity refinery, low transportation costs. Maybe throw in a generating plant right there to use the left over byproducts.
That's what most people here think should happen. Also, aside from the NIMBY crowd with respect to pipelines and refineries there's also crowd protesting new transmission lines being proposed to ship electricity either in or out of the area. But that's another story and a shady one in my mind.
DBA is offline   Reply With Quote
Reply

Tags
$30 or bl, canadian, cheapet, crude, heavy, wti

Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump


All times are GMT -4. The time now is 03:08 PM.


Powered by vBulletin®
Copyright © Jelsoft Enterprises Ltd.