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Author Topic: Maybe we don’t need Keystone XL Back to Topics
Nicoalbum

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Ottawa

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Message Posted: Mar 5, 2013 1:42:53 PM

Crude solutions the bottleneck

To the dismay of proponents in Canada, the Obama administration has lately been sounding cool to Keystone XL—even cooler than it did to TransCanada Corp.’s border-hopping oil pipeline just before it got mothballed a year ago. If that’s testing nerves in Ottawa and Edmonton, it’s also stimulating the creativity of U.S. refiners. Many of them, desperate to profit from Canada’s cheap oil, are working feverishly on a Plan B to load bitumen onto railcars, barges and trucks to bring it south to their processing facilities in Texas.

Even if Keystone XL is approved it won’t be completed until at least 2015, an unlikely best-case scenario. Meanwhile, pipeline bottlenecks are keeping western Canadian crude trading at roughly half the world oil price. That’s why “peop
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LetemEatCake
Champion Author Oklahoma City

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Message Posted: Mar 7, 2013 10:53:36 PM


Proved my point exactly!
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drpepperTX
Champion Author Texas

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Message Posted: Mar 7, 2013 12:40:58 AM

LOL, the second coming of Christ?? Absolutely not Cakes! The KXL simply makes sense over shipping by rail or trucks, pipelines are simply and statistically much safer for the environment. And after all that should be of great concern, at least it is to me!

The Truth shall set you free!!!
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LetemEatCake
Champion Author Oklahoma City

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Message Posted: Mar 6, 2013 10:57:39 PM


Agree Gvan...a simple answer, too simple for some who think that the XL is the second coming of Christ!
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bston
Champion Author Oklahoma City

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Message Posted: Mar 6, 2013 7:36:22 PM

Too much bureaucracy tied up in this.
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gvan
Champion Author Chicago

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Message Posted: Mar 6, 2013 3:41:05 PM

"Wouldn't it be easier to build a refinery where the oil is rather than build a pipeline?"

Here's one possible answer:

Some people suggest refining the oil in Canada for export. It might be a good idea in theory, but it’s not really practical. Once refined, there will be over 20 products out of it. Are we going to build 20 plus pipelines or send them by trucks to the US and how is it shipped overseas? At 900,000 barrels a day, that’s over 4,000 truckloads a day.

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sjf238
Champion Author Philadelphia

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Message Posted: Mar 6, 2013 11:23:40 AM

Let's keep funding our enemies (Venezuela, Iran, Saudi Arabia), and I'm sure China will be more than happy to buy more oil from Canada.
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drpepperTX
Champion Author Texas

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Message Posted: Mar 6, 2013 10:17:02 AM

"Wouldn't it be easier to build a refinery where the oil is rather than build a pipeline?"
============================
No. Well, easier is a relative term. You see the cost of building one new refinery is double the cost of the KXL for starters. Next the environmental permitting and red tape takes a decade or more from proposal to completion. Then consider the fact that just one refinery would not handle that much oil.

That's why it's not so simple Cakes!

The Truth shall set you free!!!
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USMCturtlehead
Champion Author Lexington

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Message Posted: Mar 6, 2013 7:52:16 AM

Maybe we don't.
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mkohly
All-Star Author Chicago

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Message Posted: Mar 6, 2013 7:37:51 AM

This pipeline isn't just for Canadian oil..., it is also planned to make it easier to export oil from the Midwest.

Once they can export it cheaply, prices in the Midwest will be based on the global market and pump price will skyrocket!
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LetemEatCake
Champion Author Oklahoma City

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Message Posted: Mar 5, 2013 11:43:30 PM


You make total sense to me endymion! Maybe too simple for some.
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nsdp
Champion Author San Antonio

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Message Posted: Mar 5, 2013 9:56:07 PM

As the story notes the refiners are looking for cheap crude. One alternative is to sign long term processing agreements with Latin American countries to process their heavy crude for them at a contract price. Right now that price is 15 cents a gallon higher than refining crude for the US market. What the Canadians and 99% of the posters here have failed to comprehend is that is plan A for refiners because they get their cash immediately and don't have to worry about changes in price affecting inventory and a resulting loss on the bottom line. No risk and a guaranteed profit better than they get out of refining for the US market. And no property taxes on inventory since it is owned by a foreign government who can't be taxed. That saved Valero about $7 million in December at the Corpus Christi refinery. That does not apply to Canadian crude after refining unless Canada owns the products after refining.

Given Valero's long track record with Mexico, Canadian crude doesn't fit Bill Kleese's business plan despite what Joe Gorder's comments. Valero will lead the charge to trade surplus US light crude to Mexico for Maya.

[Edited by: nsdp at 3/5/2013 9:57:19 PM EST]
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endymion
Champion Author New York

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Message Posted: Mar 5, 2013 9:44:25 PM

Wouldn't it be easier to build a refinery where the oil is rather than build a pipeline?
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YaBassa
Champion Author Michigan

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Message Posted: Mar 5, 2013 5:41:56 PM

Keystone XL promise of plentiful jobs and more oil available is just a baited hook for every sucker to believe. The only thing the pipeline guarantees is $$$$$Billions more for the Koch brothers
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kag2010
Champion Author Winnipeg

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Message Posted: Mar 5, 2013 4:08:58 PM

No we don't,
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xgojim
Champion Author Michigan

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Message Posted: Mar 5, 2013 4:04:09 PM

Maybe we do!! What a stupid headline.
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humblepie
Champion Author Toledo

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Message Posted: Mar 5, 2013 3:36:08 PM

build the xl and cancel obamacare for a better america
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turboz2012
Champion Author Charleston

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Message Posted: Mar 5, 2013 3:20:29 PM

we can use the jobs
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ErnieK9LO
Champion Author North Dakota

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Message Posted: Mar 5, 2013 3:05:26 PM

Stop the pipe line in ND and we can refine it there.
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Coco0828
Champion Author Dallas

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Message Posted: Mar 5, 2013 2:50:19 PM

wow
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RussianAnya
All-Star Author Dallas

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Message Posted: Mar 5, 2013 2:26:20 PM

Sure
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RussianAnya
All-Star Author Dallas

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Message Posted: Mar 5, 2013 2:25:56 PM

Sure
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RussianAnya
All-Star Author Dallas

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Message Posted: Mar 5, 2013 2:25:14 PM

Sure
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RussianAnya
All-Star Author Dallas

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Message Posted: Mar 5, 2013 2:24:15 PM

Sure
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RussianAnya
All-Star Author Dallas

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Message Posted: Mar 5, 2013 2:23:35 PM

Sure
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Van_Halen
Champion Author Atlanta

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Message Posted: Mar 5, 2013 2:18:05 PM

.
The point here is that if Obama had not illegally interfered the Pipeline would already have been built!
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teenitup
Champion Author Houston

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Message Posted: Mar 5, 2013 2:01:51 PM

One way or another we need the oil coming south.
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doggod
Champion Author Anchorage

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Message Posted: Mar 5, 2013 1:55:33 PM

I confess to being a little baffled why people don't build refineries in Alberta and export the refined product ... via truck or rail or whatever. Must be a reason; maybe it's their own NIMBY greenies, dunno.

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Nicoalbum
Champion Author Ottawa

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Message Posted: Mar 5, 2013 1:43:29 PM

To be, or not to be - that doesn't matter
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