Quote:
Originally Posted by Cappy
The problem with oil as a chip is that the USA has yo-yoed from bring a net importer to net exporter over the last few years. They have the capacity and ability to turn on the taps to meet increased demand. They also have the ability to buy from dozens of clients with access to ports. Coupled with 350 million barrels of oil in the Reserve, they have a pretty good chance of making up the production prior to having the taps turned off.
Alberta, frankly just doesnt have the bargaining cache we think it does.
I still think Ontario and Quebec have the best chips in electricity generation - but those are all blue states, so who knows
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I am not so sure. I did work in O&G for 10 years in Pipeline and Producer companies. I picked up some knowlege, mainly that infrastructure like pipe has been setup to be integrated for a reason. Its not easy to replace a pipe with a tanker given the steady predictable flow a pipe gives you. Second the gulf has refineries that are geared for heavy oil. Again, you can't retool a refinery on the fly.
All I am saying is I maybe out of date or wrong, but my understanding is this isn't painless for the US the way other goods maybe are.