There is cheap oil available in the United States. You just have to be able to transport the crude from Cushing to your personal refinery to take advantage of it.
One final element is making matters worse: Refineries are currently starting to shift to producing spring-summer gasoline blends, which are lighter and therefore usually cost about 10¢ more per gallon than fall-winter blends. And this year, the quick refinery shutdowns needed to enact the seasonal shift are creating slight supply gaps because some of the “swing” refineries that usually help bridge the gap are no longer operating. For example, the Hovensa refinery in the US Virgin Islands – a joint venture between Hess Corp. (NYSE.HES) and Petroleos de Venezuela – used to produce extra volume during the seasonal transition, but it was closed down a few weeks ago after losing $1.3 billion over the last three years.
Read it all.
Since everything in the USA and Canada moves on gas/diesel the price of turning those wheels and flying those planes will rise significantly. This will stall any chance of a economic recovery as the price of pretty well everything will reflect in the increased cost of moving everything. This, as painful as it may be, is the best chance to turf Obama out of office. His policies have a direct impact on what will p*ss of millions of consumers. The worse the economy looks by November the better it will be for dumping the worst POTUS in US history.
I have never purchased oil. I have purchased many oil products but never any crude oil (Dad bought a souvenier 4oz bottle of Turner Valley crude back in 1965). Oil can be $2/barrel but if there is no plce to refine it to gasoline, propane or plastics all three products will be expensive.
Good column, thanks Kate.
just to use the numbers provided by the column, Western Canadian crude sells for a 25 to 35 dollar discount to that of tidewater crude. Assuming 2.7 million BBL/day of production that means we are losing 25 billion per year in potential revenues per year. That’s a lot of keystone pipelines…
the better it will be for dumping the worst POTUS in US history.
–
Yes!
I Had A Dream!
I Have Been To The Mountain Top!
$5 Dollar Average Per Gallon Gasoline,
‘Oblamas Clown Act Voted Out The Door.’
Morning Kate:
SDA,
I need some Hot Chocolate..
Posted by: Gord Tulk at March 9, 2012 2:51 AM
…not to mention one Northern Gateway…
We have to start selling internationally. Period.
The XL will be built. Albeit section by section.
Section by section in spite of Obama and greenpeace, sierra, Suzuki, cameron and the rest of the other bandits.
I agree that we have to sell internationally. What I want to know is why in the past four decades a pipeline has not been built to bring Alberta (and Saskatchewan now) crude to Ontario or Quebec to be refined. Two thirds of Canada’s population is dependent on oil from foreign sources, mainly Norway and Algeria.
One would think that energy independence would be a national priority, especially during the Cold War.
Al
Here in Sarnia On the refineries have been proposing that very same thing. Enbridge, Imperial, Suncor etc have the capacity to refine it. There’s some talk of building a new upgrader if it ever gets approved. Perhaps someone more informed in the energy sector could weigh in and add some comment here.
We don’t need no steekin XL.
Looks like the alternatives are slowly falling into place.
CP Railway shipping ND crude from new terminal
You see stories like this more often. I seem to recall that there is more Bakken crude coming on the market than there is pipeline capacity to haul it, so the railways are stepping up to the plate. I believe that the XL line was also targetted to carry some of this production.
A refinery losing money? Wasn’t that supposed to be as improbable as a man having a baby?
I hope no one is so insane they would actually contemplate shipping Alberta crude to Prince Rupert via the CN line!
If people are afraid of a pipeline break and oil spill, go take a look at the tracks from the Alberta border to Rupert and you won’t be very enthusiastic about shipping massive amounts of heavy cargo on that goat path that pretends to be a railway track.
The maintenance on that line is terrible,almost every tie the tracks sit on is damaged or rotten,with spikes half pulled out. If they DO decide to ship crude over that track,they’d better re-hire all those old Maintenance-of-way gangs that used to maintain the tracks in excellent condition.
“De ‘Bama-man gonna make it alright”.
http://www.youtube.com/watch?v=Bg98BvqUvCc
http://tinyurl.com/7stuve7
I guess in 241 days we will know if $5.00 gas was an unnecessary expense or a strategic investment.
@ kakola at March 9, 2012 2:17 PM
Problem is these people are so stupid they think it will all come true in Obamas second term. The shallow end of the gene pool is just too damned crowded.
One thing you can count on, when OPEC cuts oil exports to the US, it won’t reduce the growing exports of refined fuel to global markets from US refineries. OPEC cuts will be used as an excuse to create fuel shortages at pumps in America to drive prices up even higher. Don’t worry, it’s not personal, it’s just business.
To get Obama out, a significant number of the 37% who didn’t bother voting in 2008 have to be motivated to get up off their fat asses and go vote against Obama. Paranoia and panic motivate Americans better than anything else, and the people who want Obama gone will use every trick available to scare Americans into believing Obama’s re-election will be the end of the good life as we know it.
Don’t worry, it’s not personal, it’s just politics.
@ North_of_60 at March 10, 2012 12:28 AM
“scare Americans into believing Obama’s re-election will be the end of the good life as we know it.”
Hate to tell them it’s over either way. The only difference is with Obama at the helm it will be over much quicker. Like you said…….just politics. No one gets elected by promising pain and suffering.
Hate to tell them it’s over either way.
Yup, changing presidents just means they’ll have someone else to blame all their misfortune on.
The oil and coal companies run the country, the POTUS is just a figurehead/scapegoat.
The article did not mention that the last new US refinery to open was during the Carter administration.
@ oneblankspace at March 10, 2012 12:00 PM
Control the product, control the price. Even shutting down for maintenance generates billions of $. Since Govt. takes taxes in percentage they benefit greatly from the screwing the consumer takes. They are all in bed together. They have the proper outrage shown down to a fine science. Wink, wink, nod ,nod.