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Gold/Mining/Energy : Big Dog's Boom Boom Room

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To: Dennis Roth who wrote (168780)5/21/2012 3:34:30 PM
From: upanddown  Read Replies (1) of 206085
 
A pipeline from Cushing to LA would make a lot of sense though I don't understand why it would have to be subsidized by the govt.

PADD 5 (West Coast) used to be self-sufficient in crude but that was when Valdez was shipping 2MMBD in the late 80's.

Now Alaska ships <600MBD and projected to be <500 by 2020 and PADD 5 imports are >1MMBD.

The route would be straightforward, just follow US 40 a/o Route 66 due west through a lot of desert and sparsely populated areas,going south of the Rockies and the Sierra Nevada.

Alaskan North Slope currently sells for a $15 premium over WTI and not taking Valdez oil further south than the Bay Area would cut 1000 mi off the round trip Valdez to LA.

The big problem would be taking it through the last 100 miles of the route through the LA megalopolis to the refineries at the Pacific.

I would be surprised if a pipeline to LA was not at least under consideration.
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