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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: russet who wrote (158742)	10/21/2011 2:30:04 AM
From: clochard	Read Replies (1) \| Respond to of 206093

Joe Oliver, Canadian resource minister, was on CNBC Europe just now trying to defend XL. When asked why they don't build refineries in Canada, he quickly pointed out the importance of the gulf market but he admitted that the overseas markets make reaching the gulf coast important. Looks to me like the Canadians are trying to get others to pay and do the work for them.

To: russet who wrote (158742)	10/21/2011 9:27:37 AM
From: Ed Ajootian	1 Recommendation Read Replies (3) \| Respond to of 206093

russet, yes, its immensely significant, because very few of those lines you are looking at have oil being transported to the Gulf Coast refineries. Based on past production trends, which have changed dramatically in the past few years, it was cheaper for the Gulf Coast refineries to import oil from other parts of the world rather than draw it from this continent. That's why the refineries were built down there in the first place. That pricing dynamic is no longer the case, and folks seem to think that situation will not re-emerge for many moons if at all.