Quote:
Originally Posted by Andy83
I'm trying to say, that while in some ways we have become slightly more independent, we are still very much dependent on the US market for our product. No matter how you slice it, 90% of our exported oil goes to one market. I'm not so concerned with why this is and how we got here "who's fault it is" because there is no one reason. The US is currently, and was in the past our, only customer. Not sure what you'd have done with the product if we weren't going to sell it to them. That being said, I acknowledge, that had the bandaid been ripped off in the past (and again, im not so concerned with why this didn't happen, only that it didn't happen), it likely means we have much larger capacity east and west now, and our position would be much better.
I'm trying to say, due to current circumstances, we need capacity to refine, and move our products both east and west, yesterday. Even if you don't believe the federal government played a major role in the scrapping of these projects, I'm sure you'd agree they sure didn't help. The economy and logistics of these projects were altered by legislation and rhetoric.
Im trying to say, I don't think there is a legitimate argument against having a more diverse set of markets competing for our products. That only happens one way while bypassing the US.
Hopefully that is more clear.
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Sure, but who is paying for these new pipelines and exports and who’s taking the oil. Exports east really don’t get you much in terms of putting heavy in the water. There’s no market. Exports west for heavies and Asia has some appetite, but you need to build like 4.5 million of export capacity to displace the Us. What company is building that? What comoany(s) are signing the 25-30 year agreement to underpin it? Is the government building it?
Refining more here isn’t the answer, refining is mostly done as close to the consumer market for lots of good reasons. I guess we could build more upgrader capacity to produce more syn so we wouldn’t habe be the heavy issue it same questions? Who’s building the upgraders?
I just don’t see a path to building out more export capacity in a substantial way and all the people sayign it’s the solution can’t explain the economics to me.