Quote:
Originally Posted by creaturecat
think what it would cost if Canada wasn't selling oil to the US for one half the world price.
Meanwhile we Canucks pay world price at home. go figure.
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Different qualities of crude demand different prices. ANS (alaskan north slope) is a premium crude, light and sweet. Same with most of the saudi oil. Plus there are infrastructures in place to move it to where it needs to go. That makes it economical and drives the price up. They demand full price.
WTI (west texas intermediate) is not as good as the premium crude so it sells a little cheaper. Since tejas is chock full of pipelines and they have plenty of refineries and also that gulf thing, moving the oil is easy. Makes it reasonably attractive.
The crappier heavy sour oil sells at a large discount because the yield is lower and it costs a whole bunch more to refine due to the sulfur, and it tears up the equipment faster.
So iffn you're talking about the bakken crude, there are other factors at work. First, it's in the wrong place. We need it in other places, but it's stuck up there. gotta send lots of it in rail cars, not as efficient as pipeline and it's a huge bottleneck.
That makes shipping it more expensive and cause the oil to be cheaper. Plus it aint all that clean.
Then there's your tar sands oil. Nasty stuff. Definately not cream of the crop.
They sell it cheap because it is cheap. Plus it's in the wrong place. can't get there from here, gotta start from someplace else.
Since there is a boon going on in north dakota, wyoming, and sass-catch-you-juan there is an oversupply in that region and it's trapped. They're making more than they can ship by rail and that makes it really, really cheap locally.
If you-bummer would OK the keystone pipeline that oil would go up as the shipping got cheaper. Everyone would win.
Gotta talk apples to apples, 'cause rotten oranges ain't worth as much.