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

To: Dennis Roth who wrote (168780)	5/21/2012 1:22:22 PM
From: Sweet Ol	4 Recommendations Respond to of 206085

A long time ago, in another life, I built operations research models to optimize crude oil trading for a major oil company. It is a very complicated business and the optimums were often surprising because when you trade a crude from one place to another it displaces another crude and so on and so forth. That is the main reason why lines to Kali were never built. However, conditions change and it might now be profitable, but I doubt the government can figure it out. The obvious solution is likely not the profitable solution. Blessings, JRH

To: Dennis Roth who wrote (168780)	5/21/2012 3:34:30 PM
From: upanddown	Read Replies (1) \| Respond to 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.