combjelly,
Not that fungible. Consider, you are running a refinery. Your refinery can handle light, sweet crude at $55 a barrel or heavy, sour crude at $37 and you get equivalent products. Now true, the costs to process the heavy crude is a little more, but no where near $18 a barrel. No one who can process heavy crude is buying light crude right now.
It does not matter that US refineries prefer the light sweet crude. Somebody can either build a refinery that likes this oil (and there is plenty coming form ANWAR to keep it busy, or, the oil gets shipped anywhere around the globe where they have refineries that like the ANWAR type crude.
If the price difference the US refineries offer is $18 below the light sweet benchmark, for the price, the oil can be shipped anywhere on the globe for the fraction of that price.
BTW, the argument seems like grasping at straw, trying to find a logical argument, when there are realy no logical obstacles, only emotions / feelings against.
Joe |
