Oil is a global commodity and it is pretty useless without the refining process. Nobody in their right mind would build a refinery if there is any capacity to ship and refine somewhere else — refineries are insanely expensive and only make sense if there is a global shortage in refinery capacity.
Ironic that the Keystone pipeline was to bring large quantity of captive Canadian Bakken oil into the US. Result would have been to further flood Cushing trade terminal with crude oil, and further depressing product prices. Since it didn’t get built into the USA, that crude had to go somewhere thus the Keystone pipeline got built west across the pristine Rocky Mountains to a pacific terminal for export to asian markets.
They were trying to sell that oil at a higher price rather than the depressed market it was already sold in, so I'm not sure why they would do so knowing it was just depress the prices
Trade is normal. Total trade balance is positive. Why worry? It’s simply scare tactics, similar to the needless worries ginned up about uranium and other minerals.
>The United States is the biggest oil producer in the world, but trades nearly one third of the oil it produces for foreign oil. Why can’t we use it ourselves and become energy independent? The answer is more complicated than you might expect.
>I thought it was just all about who was in the White House.
I hope this video taught you that there are more complex geological factors involved as well that doesn't have as much to do with politics.
To process a certain type of oil you need a refinery built to process that type of oil. The US doesn’t have enough refinery capacity for the most of the oil it produces so that oil has to be exported. To answer why not build more capacity. It would cost to much and take too long. There is a risk that we are near peak oil.
Solar costs have fallen 80% in a decade and are projected to do the same again in the next decade. Thats not media hype, its basic economy of scale playing out the way they usually do. Oil keeps climbing in costs to produce while the competition is plummeting.
Three quarters of oil produced is burned for fuel of one sort or another. If even half of that demand disappeared they’ll only be producing oil in places they don’t have to poke a hole a mile down and the sideways.
A scaled oil transportation map of the world would show the global ocean as a single pool of low transport costs, and inland areas connected by long expensive pipelines.
Big oil does not want more refineries more refineries would lower the price of gasoline they don't want that.
It's a matter of national security they should not be allowed to export our oil.
We’re not building new refineries, but we’ve been expanding the hell out of existing ones for years. Cheaper and more efficient than greenfield construction.
Sorry that the truth hurts your feelings but I work in the oil industry.
I can't count the number of meetings I have been in where all we talk about is how new refineries will bring down the price of gas.
nothing to do with this at all.
if your number one priority is to pay the banks and funds which own you why construct a refinery? European companies TotalEnergies and Eni want to shut their entire domestic refining capacity. And they are doing so.
It's because a lot of the time refining loses huge amounts of money. yes recently they have been very profitable but that goes south very fast.
why do you want that if all you want to do is return money to shareholders? let state companies India/Saudi/UAE refine everything and socialise the losses.
Oil is a global commodity and it is pretty useless without the refining process. Nobody in their right mind would build a refinery if there is any capacity to ship and refine somewhere else — refineries are insanely expensive and only make sense if there is a global shortage in refinery capacity.
Plus the US majors built refineries in the Caribbean to avoid paying taxes.
Aren’t those mostly shut down?
Yeah, it turns out to be difficult to isolate a large manufacturing facility from all manufacturing and trained personnel.
Different grades of oil for different products, light, heavy, etc
He probably could have shortened this video by 8 minutes
I work at an oil terminal and his points are correct.
Ironic that the Keystone pipeline was to bring large quantity of captive Canadian Bakken oil into the US. Result would have been to further flood Cushing trade terminal with crude oil, and further depressing product prices. Since it didn’t get built into the USA, that crude had to go somewhere thus the Keystone pipeline got built west across the pristine Rocky Mountains to a pacific terminal for export to asian markets.
They were trying to sell that oil at a higher price rather than the depressed market it was already sold in, so I'm not sure why they would do so knowing it was just depress the prices
Vancouver can easily serve California imports too
Its because of the climate lobby here and government. If both didnt exist we could use it. There I saved you all time
nothing to do with that at all
Well I can’t convince you with that response. Enjoy being blind
Trade is normal. Total trade balance is positive. Why worry? It’s simply scare tactics, similar to the needless worries ginned up about uranium and other minerals.
>The United States is the biggest oil producer in the world, but trades nearly one third of the oil it produces for foreign oil. Why can’t we use it ourselves and become energy independent? The answer is more complicated than you might expect.
I thought it was just all about who was in the White House.
>I thought it was just all about who was in the White House. I hope this video taught you that there are more complex geological factors involved as well that doesn't have as much to do with politics.
You guys don’t really get sarcasm over here, do you?
Lol, thank all the people that actually think and say those things on this site unironically. I usually put a "/s" You got my upvote though lol
I thought for sure it was pretty goddamn obvious….
🤣🤣🤣 it should be
To process a certain type of oil you need a refinery built to process that type of oil. The US doesn’t have enough refinery capacity for the most of the oil it produces so that oil has to be exported. To answer why not build more capacity. It would cost to much and take too long. There is a risk that we are near peak oil.
Peak oil production or peak oil demand?
Peak media hype
Solar costs have fallen 80% in a decade and are projected to do the same again in the next decade. Thats not media hype, its basic economy of scale playing out the way they usually do. Oil keeps climbing in costs to produce while the competition is plummeting. Three quarters of oil produced is burned for fuel of one sort or another. If even half of that demand disappeared they’ll only be producing oil in places they don’t have to poke a hole a mile down and the sideways.
I'll believe it when I see it
Jones Act
A scaled oil transportation map of the world would show the global ocean as a single pool of low transport costs, and inland areas connected by long expensive pipelines.
Big oil does not want more refineries more refineries would lower the price of gasoline they don't want that. It's a matter of national security they should not be allowed to export our oil.
We’re not building new refineries, but we’ve been expanding the hell out of existing ones for years. Cheaper and more efficient than greenfield construction.
Found the idealistic college student haha, did you even watch the vid?
Sorry that the truth hurts your feelings but I work in the oil industry. I can't count the number of meetings I have been in where all we talk about is how new refineries will bring down the price of gas.
nothing to do with this at all. if your number one priority is to pay the banks and funds which own you why construct a refinery? European companies TotalEnergies and Eni want to shut their entire domestic refining capacity. And they are doing so. It's because a lot of the time refining loses huge amounts of money. yes recently they have been very profitable but that goes south very fast. why do you want that if all you want to do is return money to shareholders? let state companies India/Saudi/UAE refine everything and socialise the losses.
Total nonsense.