The Trump Presidency Message Board

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Politics : The Trump Presidency

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To: i-node who wrote (193336)	2/7/2021 9:47:14 PM
From: combjelly	4 Recommendations Read Replies (2) of 363171

It depends. Oil from tar sands, properly called bitumen, is not the same as the benchmark crudes. Heavy sour crude sells at a discount anyway, because there just aren't all that many refineries that can handle it. Most American refineries can't, for example. Although the Texas Gulf coast has refineries that can. Bitumen is even worse. It has to be mixed with light fractions like naphtha to even flow in a heated pipeline. Hence the name diluted bitumen or dilbit. So it has an odd distribution of molecules. While it is possible through cat cracking to get usable fractions that go into gasoline, it is expensive to do, both in equipment needed and energy and other consumables. So it isn't very desirable because it is very expensive to make anything with it. It only makes sense if the price of better grades of crude is very expensive, like well over $100 a barrel for benchmark crudes and not under $50 a barrel like it is now. It is uneconomic for most of the refineries out there to even use it. Even TC Energy, the owner of the pipeline, realizes this and is backing off of the project.

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