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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: elmatador who wrote (44395)	12/28/2008 3:25:47 PM
From: energyplay	1 Recommendation Respond to of 217547

The reason for using West Texas light sweet or Nigerian Bonny Light or equivalent light sweet crudes as a reference is pretty compelling. Every refinery in the world can process them, even older, simpler refineries. Roughly about half the refineries in the world can process the heavier and sour crudes, depending of how heavy they are. The author mentions the premiums and discounts from the light crude prices. What he does not mention is that NO DISCOUNT will enable a simple refinery built for light crudes to process Heavy Saudi (or Mexican or Venezuelan heavy crudes, or Canadian tar sands for that matter). The heavy stuff is not fungible or equivalent to the light stuff. So John Kemp either doesn't know all the facts, or chooses not to present them. Notice the "policymakers interested in structual reform" are not named. If the Saudis feel they need to have a market that uses Saudi crude as a bench mark, they or their freinds in the Gulf States are free to set up and run one. There is no reason to screw up something that is working to accomodate the Saudis.