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Title: Forget Keystone, The US Desperately Needs An East-West Pipeline
Source:
Business Insider
URL Source: http://www.businessinsider.com/us-n ... -pipeline-2012-3#ixzz1pnybUayd
Published: Mar 22, 2012
Author: Keith Schaefer, Oil and Gas Investments
Post Date: 2012-03-22 15:40:19 by Hondo68
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Keywords: Shale Boom Hits Oil, North Dakota Bakken, $50/bbl more than Can. oilsand
Views: 6116
Comments: 21
In the debate over rising gas prices, one largely overlooked issue is the lack of US oil pipeline distribution to the East Coast, where refineries that must import higher priced Brent crude are being shut down. America has more than enough cheap domestic oil, thanks to the North Dakota Bakken and the Canadian oilsands. And it doesn’t face a refinery crisis in terms of capacity - after all, even though the US hasn’t built a new refinery since 1976, oil refining has actually increased by 2 million bopd to 17.7 million bopd since 1985 (and US refinery demand has been steady at 14.8 million bopd since 2005). Instead, the real problem is that coastal refineries can't source the cheaper North American crude. The Brent oil price fluctuates widely with geopolitical news. A stable, nationwide refinery system—well connected with pipelines—is one area where the US can help control price surges in local markets. Few things affect local gas prices like the shutting down of an oil refinery - and right now, the East Coast is at risk of losing three. Politicians talk to the potential of the Keystone XL to bring cheaper Canadian crude to the Gulf Coast. But this north-south pipeline isn’t as badly needed as west-east lines that can carry cheaper American and Canadian crude from Cushing, Oklahoma to money-losing refineries on the East Coast. Today, the country’s five oil districts are not well connected by pipeline--each district must rely on its own crude supplies. Only the Midwest and Gulf Coast refineries have access to all the new cheap crude coming out of the US shale plays and the Canadian oilsands. As a result, consumers in these regions enjoy WTI pricing - some of the lowest retail gasoline prices in the world. With no pipelines from the heartland, refineries on the east and west coasts are forced to use imported crude based on Brent pricing—which is $20/bbl more than WTI, $40/bbl more than Canadian light oil, and $50/bbl more than the huge new supply of Canadian oilsands crude. These coastal refineries are having to buy crude at higher international prices and then sell the finished product into a US market that enjoys some of, if not the, lowest retail gasoline prices in the developed world. This leads to serious financial losses for the refineries and, as a result, more energy companies are looking to get out of the refinery business. Right now there are three refineries up for sale on the East Coast - two by Sunoco and one by ConocoPhillips - and more could be coming. Altogether, these three plants have a refining capacity of over 800,000 bopd. If these shut down, the entire eastern seaboard, but especially the US Northeast, could see a supply crisis and a record jump in gas prices this summer just as the driving season hits top gear. But this would not be happening if these refineries - and the others along the east and west coasts of the US - could access all the cheap light oil being produced in the North Dakota Bakken and other shale plays in the US. Or the Canadian crude that's even cheaper. That means more pipelines - east-west pipelines, not north-south. That cheap domestic crude has to flow to the coasts and help make those refineries profitable again. But to be clear, all that cheap crude getting to coastal refineries - east or west - won't lower gasoline prices, but it would likely prevent these refinery closures, and the massive price hikes that could happen along with it. A recent study conducted by Bentek Energy (Crude Awakening: Shale Boom Hits Oil) found that North American crude production will increase 36 percent, or 3.1 million bopd, by 2016 due to shale oil plays and the Canadian oilsands. The firm notes, however, that this positive outlook on supply is undermined by the fact that there is inadequate transportation capacity to get that oil to refineries. It's tracking the development schedules of 75 pipeline expansions, 25 rail expansions and 7 refinery expansions—though the near term expansions are mostly in the Gulf Coast which already holds half the US refining capacity. That's little comfort to the drivers on the east coast.
Poster Comment: The Koch Brothers aren't about to build that pipeline with O'bungler at the helm.
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#1. To: hondo68 (#0)
So it IS the Koch's who are behind all the high oil prices. We need to kick their traitorous asses out of the US.
Almost every country in the Middle East is awash in oil, and we have to side with the one that has nothing but joos. Goddamn, that was good thinkin'. Esso posted on 2012-01-13 7:37:56 ET
No the conservatives just need to keep stockpiling weapons. So we can get rid of the evil doers.
We disagree, Stone, and that makes you wrong - but it doesn't make you evil.
Anyone claiming to be an expert is selling something. I brandish my ignorance like a crucifix at vampires. Aaron Bady
I don't consider you evil either. Just ignorant and foolish. Informed but still ignorant.
You guys can't even identify your true enemies much less take them out.
Almost every country in the Middle East is awash in oil, and we have to side with the one that has nothing but joos. Goddamn, that was good thinkin'. Esso posted on 2012-01-13 7:37:56 ET
They are easy to identify. They are the ones attacking normal Americans.
Maybe his real problem is that he can't identify "normal".
Anyone claiming to be an expert is selling something. I brandish my ignorance like a crucifix at vampires. Aaron Bady
Normal means real Americans. You know the conservateives. Not the neocons. Not the libtards. Not the progressives. Not the faggots. The people who get up, go to work and make the country work. Not asslickers like Obama.
I would call 'normal' wherever he's lives...'easily manipulated'.
Almost every country in the Middle East is awash in oil, and we have to side with the one that has nothing but joos. Goddamn, that was good thinkin'. Esso posted on 2012-01-13 7:37:56 ET
So only bigots are normal. Alrighty then.
Almost every country in the Middle East is awash in oil, and we have to side with the one that has nothing but joos. Goddamn, that was good thinkin'. Esso posted on 2012-01-13 7:37:56 ET
Read what I said dim. I said no libtards. So that rules out the bigots. It gets rid of libtards who think blacks are inferior and need special help. It also excludes the feminazis who are bigoted towards babies. You know the Nancy Pelosis who stand up all proud and say killing a baby is a virtue and we should all kill babies and be proud of it. You know sickos like that.
It's real simple, Stone. To ID the *real* enemies of America, LoonyMing needs only look in the mirror .
To: mcToejam, rat-boy, drippy, Alzheimer Fred, whitesands, t-bird, Don't you find it odd that California, the state your "real" conservatives identify as communist, is the most productive state in the union?
Anyone claiming to be an expert is selling something. I brandish my ignorance like a crucifix at vampires. Aaron Bady
Is it per capita? I don't know. Cite a source and someone might believe you.
There are lots and lots of real Americans in California. It just appears they are outnumbered when you add the illegals to the so called liberals. You do know that most of the hispanic population in California are illegals don't you. As such they should be deported. It would help the American economy.
I know that the land my county government buildings occupy was donated for that purpose by a family who owned it first as a Spanish land grant, and then as a Mexican land grant.
Anyone claiming to be an expert is selling something. I brandish my ignorance like a crucifix at vampires. Aaron Bady
Did they kill indians for it?
Not exactly. The Catholic Church established missions, enslaving and converting the local people. The Spanish passed on their diseases to the Indians who had no natural immunity and so died in large numbers - it is estimated that 2/3 of California Indians were wiped out. After the war with Mexico and during the gold rush, Americans flooded into the state. They had the attitude that they could just take what they wanted from the Mexicans who owned it.
Anyone claiming to be an expert is selling something. I brandish my ignorance like a crucifix at vampires. Aaron Bady
Which means that since the dawn of creation, the family was under Mexican jurisdiction for about 20 years total. Most likely they're fine patriotic AMERICANS and don't even think of themselves as Mexican or Latino. Try calling them Mexicans and see what you get.
Obama's watch stopped on 24 May 2008, but he's been too busy smoking crack to notice.
You must be really old. You describe it like you was there.
I am really old, and I like history.
Anyone claiming to be an expert is selling something. I brandish my ignorance like a crucifix at vampires. Aaron Bady
The Koch Brothers aren't about to build that pipeline with O'bungler at the helm.
#2. To: mininggold (#1)
So it IS the Koch's who are behind all the high oil prices. We need to kick their traitorous asses out of the US.
#3. To: A K A Stone (#2)
No the conservatives just need to keep stockpiling weapons. So we can get rid of the evil doers.
#4. To: lucysmom (#3)
We disagree, Stone, and that makes you wrong - but it doesn't make you evil.
#5. To: A K A Stone (#2)
No the conservatives just need to keep stockpiling weapons. So we can get rid of the evil doers.
#6. To: mininggold (#5)
You guys can't even identify your true enemies much less take them out.
#7. To: A K A Stone, mininggold (#6)
They are the ones attacking normal Americans.
#8. To: lucysmom (#7)
Maybe his real problem is that he can't identify "normal".
#9. To: lucysmom (#7)
Maybe his real problem is that he can't identify "normal".
#10. To: A K A Stone (#8)
(Edited)
Normal means real Americans. You know the conservateives. Not the neocons. Not the libtards. Not the progressives. Not the faggots. The people who get up, go to work and make the country work. Not asslickers like Obama.
#11. To: mininggold (#10)
So only bigots are normal. Alrighty then.
#12. To: A K A Stone (#6)
loonymom, ming, e-type jackoff, goober56, wreck, cal-CON, rabid dog, dummy DwarF, biff, harrowup the communist, and meguro. You're on the "a waste of human flesh" list. Brian S[ocialist], you're a propagandist moron. ALL of you can piss off.
#13. To: A K A Stone (#8)
Not the libtards. Not the progressives. Not the faggots. The people who get up, go to work and make the country work. Not asslickers like Obama.
#14. To: lucysmom (#13)
Don't you find it odd that California, the state your "real" conservatives identify as communist, is the most productive state in the union?
#15. To: lucysmom (#13)
#16. To: A K A Stone (#15)
You do know that most of the hispanic population in California are illegals don't you.
#17. To: lucysmom (#16)
who owned it first as a Spanish land grant, and then as a Mexican land grant.
#18. To: A K A Stone (#17)
Did they kill indians for it?
#19. To: lucysmom, *Liberal Rehab Staff* (#16)
the land my county government buildings occupy was donated for that purpose by a family who owned it first as a Spanish land grant, and then as a Mexican land grant.
"We (government) need to do a lot less, a lot sooner" ~Ron Paul
#20. To: lucysmom (#18)
After the war with Mexico and during the gold rush, Americans flooded into the state. They had the attitude that they could just take what they wanted from the Mexicans who owned it.
#21. To: A K A Stone (#20)
You describe it like you was there.
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