2 part answer...
First part..
"I guess it isn't clear to me why that bitumen need to be pumped all the way to the Gulf to be processed."
It doesn't. It can go to either coast, or to China. That requires pipelines or rails to the coast or to China. Very long pipeline, or a very very long bridge. They can also build refineries up there.
Right now, the pipelines are set to go from the Gulf north. They could put in a line from Cushing, Okiehomeland, to the Gulf.
"if the Canadians are rubbing their hands about supplying the giant energy pig next door, they ought to refine it themselves and sell us the finished product."
A frequent arguement on the Drum.
In the meantime,
westexas on September 3, 2011 - 4:04pm
It seems to me that there are three groups that are primarily opposed to Keystone: environmentalists, Mid-continent landowners and Mid-continent refiners.
Courtesy of Undertow, who posted some Bloomberg links, following are some closing prices for several crude oils. Excluding WTI, the mean and median price is roughly about $114.
Tapis $121.90
Minas $120.40
Bonny $117.08
Forties $114.78
Louisiana $114.45
Urals $113.60
Brent $112.48
Alaska $111.60
Oman $109.01
Dubai $108.50
WTI $86.45
If we assume that about 4 mbpd of crude oil is priced at the WTI price in North America (half Canadian imports and half US production), then Mid-continent refiners are transferring about $40 billion per year from North American producers to their own pockets, which they are retaining in the form of the vastly increased WTI crack spread (as documented by Undertow). For the sake of argument, if the refiners wanted to spend about one-tenth of one percent of their annualized profits from the WTI/Global price spread, they could spend $40 million fighting the Keystone pipeline.
theoildrum.com
Meanwhile, back at the Bakken Ranch,
Fuel Shortage Hits Dakotas, Minnesota
FARGO - A critical shortage of gasoline and diesel fuel is showing no signs of improving. North Dakota Petroleum Marketers Association Executive Director Mike Rud says with the harvest getting underway and a huge demand for diesel, supplies are short.
Rud says he and other industry representatives are working with the governor's office, trying to find ways to get more fuel into North Dakota from refineries in other parts of the country. Minnesota, South Dakota and Iowa are also experiencing fuel supply shortages.
Source: Paul Jurgens
kfgo.com
BTW, 10% of our oil is now shut-in cuz of Lee... 600,000 BPD. |
