Thursday, March 23, 2017

State Department Approves Keystone Pipeline -- March 23, 2017

Implications. Best part of this story -- clear discussion re: heavy oil vs light oil.
The heavy oil could displace oil that comes from other places outside the U.S., like Saudi Arabia or Iraq. Some heavy crude suppliers have seen waning production in recent years, like Mexico and Venezuela.
"If we get additional quantities of heavy Canadian crude, which is preferred by many refineries in the U.S., we might turn out to sell more quantities of [U.S.] light, sweet crude to the rest of the world," said Andrew Lipow, president of Lipow Oil Associates.
The Gulf Coast refineries mainly refine heavy crudes, whereas U.S. shale drillers pump light, sweet crude. Light, sweet crude is mainly refined on the east and west coasts.
"All this additional crude oil should keep our input costs lower, which will make our refined products even more competitive," said John Kilduff of Again Capital. The U.S. is a net exporter of refined product already. Government data shows that the U.S. last week exported 1.2 million barrels a day of distillates, which includes fuels like diesel. The U.S. also exported 592,000 barrels a day of gasoline last week.
Still waiting for news of DAPL oil flowing. The reason for the delay: domestic terrorism along DAPL delays flow of oil by at least a week.

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