Big Oil and citizenship

coboardhead · Joined: 26 Oct 2009 Posts: 4303

The product will make it to market via trucks, trains or pipeline. Personally, I favor pipelines over trucks or trains that go through town after town.

The pipeline will not only transport tar sands oil, but also bakken crude oil from North Dakota. Yes, to worldwide markets. But, this is our economic system. The US has operated on trade deficits for a generation. Doesn't an exported product have financial merit in reducing that imbalance?

As far as a revised EIS, Youwindsurf, I do not know. The Congress has decided to take on the approval to relieve the President from making the decision...bet he likes that. The problem with forcing a legislative decision is that it could try to circumvent some of the regulations. This wouldn't be desirable. I would much rather see this decision de-politicized.

keycocker · Joined: 10 Jul 2005 Posts: 3598

Good post You.
If one can't read it all, it makes a good point about the cost of gas in the Midwest.
The Canadians have proven in gov. testimony that one big benefit to Canada is the higher prices they can charge in the Midwest for fuel once they don't have to refine in there.

swchandler · Joined: 08 Nov 1993 Posts: 10588

"The US has operated on trade deficits for a generation. Doesn't an exported product have financial merit in reducing that imbalance? "

I have to question a strategy to lessen our trade deficit by exporting our natural resources offshore to be subsequently manufactured into more expensive finished goods that are ultimately targeted for US consumption. How does this address our increasing lack of manufacturing capability, to include the jobs that go with it? A good part of our economic malaise today and into the future is rooted in the offshoring of key manufacturing technologies, and with it, the potential for future innovation and development. It worries me greatly that many don't seem to recognize what's happening.

coboardhead · Joined: 26 Oct 2009 Posts: 4303

Good point. Maybe it would actually contribute to trade imbalance.

But, aren't oil prices pretty much determined by world markets? And, wouldn't cheaper energy costs lead to reduced manufacturing costs?

mrgybe · Joined: 01 Jul 2008 Posts: 5180

keycocker · Joined: 10 Jul 2005 Posts: 3598

Are you aware that The Saudis and Dutch are the intended refiners for most of the crude?
Did you know that part of the plan was to raise gas prices in the Midwest?

coboardhead · Joined: 26 Oct 2009 Posts: 4303

http://www.factcheck.org/2014/03/pipeline-primer/

There is little evidence that the pipeline would affect fuel prices in the midwest.

Keycocker, my understanding is that the pipeline could also be part of a transport system for the North Dakota oil. Is this not true?

mrgybe · Joined: 01 Jul 2008 Posts: 5180

keycocker · Joined: 10 Jul 2005 Posts: 3598

Motiva just added huge facilities designed to process that very heavy crude making them the largest refinery at the end of the line, the largest refinery in America, and the sixth largest in the world. They have announced plans to become the largest refiner in the world soon.
Keystone oil plays an important role in that plan.
You are welcome.

mrgybe · Joined: 01 Jul 2008 Posts: 5180

I'm very familiar with that facility. It is the now largest refinery in the US and was upgraded specifically to handle heavy Saudi crudes. It is capable of handling heavy Canadian crude but, contrary to your assertion, there are no plans to do so in large volumes.

"Saudi Aramco’s investment in the refinery expansion is meant to ensure that Saudi Arabia will retain an important market for its crude in the United States at a time when American politicians are declaring their intention to wean the country off imported oil............Saudi Arabia has been able to tap into its spare capacity, mostly lower-quality heavy sour crudes, to stretch its exports. Most refineries cannot easily process those crude oils, but the expanded Motiva refinery here can, freeing other Saudi grades for other markets. “The Saudis are securing a home for their heavy crude,” said Fadel Gheit, a senior oil analyst at Oppenheimer & Company.”
http://www.nytimes.com/2013/04/05/business/texas-refinery-is-saudi-foothold-in-us-market.html?pagewanted=all

So, to summarize, your assertion that most of the Keystone crude will be refined by he Saudi/ Dutch was flat out wrong......as is your assertion that Saudi Arabia has a large ownership stake in Keystone project. They do not. Seems I'm not the only one confused by simple facts.