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Originally Posted by Azure
So where exactly are we trying to get it once it is refined? Because that $20 billion dollar refinery project in Kitimat seems to have some legs. And it would require the Northern Gateway Pipeline to be built.
Say we ship our oil to Kitimat, refine it, load it onto ships and get it out of country. Or wherever it needs to go. Would that even be practical. Because David Black is claiming he has the money to get it done.
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I am pretty skeptical about David Black's plan to begin with. For shipping, I don't know exactly as he mentions refining gasoline and diesel but doesn't mention the other products. Perhaps the plan is to put the other products on compartmentalized ships or even in barrels onto cargo ships. I really don't know much about that though.
The problems that I see with the refinery plan is the economics of the plan. He wants to buy the oil at Western Canadian prices, upgrade them and then sell the products at world prices. Once the oil companies get their product to the coast they will expect world prices.
My guess is that he is hoping his idea gains steam and becomes a condition of BCs blessing to Enbridge. That will set him up for favorable terms when buying the oil from the shippers.
If you read the reports, he seems to have buyers and locals on his side but there is never any mention of a shipper who is on board. He also seems to be proposing to finance the entire operation without any oil company. That isn't necessarily a bad thing, but seems odd.