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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: TimbaBear who wrote (42027)	9/21/2005 9:29:45 PM
From: Elroy Jetson	Read Replies (1) \| Respond to of 110194

The simple fact is this. Oil prices would collapse if most refineries could handle the most sour crude oil available and the most heavy crude oil available. If refineries were upgraded to refine any type of oil, there would once again be far more oil available than there is demand. We reached "Peak Oil" for super-light sweet crude even before 1976. "Peak Oil" for light sweet crude occurred in the 1976-1982 period. During that period, what people generally called sweet crude changed to allow more sulfur because most refineries rebuilt to handle a larger amount of sulfur. Mind you, refineries have contracts for crude with specific characteristics depending on their specific constraints. Terms like light, heavy, sour and sweet have no specific meaning for refineries. "Peak Oil" theorists deal in the abstract, refineries deal in the very specific. Tar sands are now marginally economic. Oil from coal will be the next most economic, trailed way behind by oil sands which are far more problematic than most can appreciate. .