Thursday, July 27, 2017

Wow, Bringing Coal To Newcastle -- Huge Story -- July 27, 2017

Updates

Later, 1:25 p.m. Central Time: see first comment --
But here's the rub: market prices don't bear out what the Peak Oilers claim.

Eagle Ford condensate sells at only a $1.00 per barrel discount to Eagle Ford crude, and Eagle Ford crude sells at no discount to West Texas Intermediate (WTI). 
https://s1.postimg.org/tfhmxhrzz/Captura_de_pantalla_1282.png

In Canada, Edmonton condensate sells at no discount to WTI, and sells at a premium to Canadian Light crude. 
https://s11.postimg.org/wt1m9wbkj/Captura_de_pantalla_1281.png
Original Post
 
UAE will import first crude oil cargo ever from the United States. Link here.
To repeat: The United Arab Emirates will import the country's first oil cargo from the US as the OPEC producer sought substitutes to replace Qatari condensate supplies after a diplomatic row.

Wow.

Every Arab for himself.
Enbridge, 1 -- Chippewas, 0. Link here, data points:
  • Canadian Supreme Court rules in favor of Enbridge
  • Chippewas of the Thames First Nation in Ontario using same argument as their colleagues in Standing Rock
  • Enbridge's Line 9, running between Sarnia, Ontario, and Montreal, through "what the Chippewas regard as their traditional territory" 
US crude oil, gasoline stocks fall sharply: link here. Reposting from yesterday. WTI is down almost one percent in pre-market trading today. Still 38 weeks to re-balance at this rate of drawdown, and the US driving season will soon be ending. US gasoline demand has hit records
twice in the past three weeks, and barely missed a record that third week.

2 comments:

  1. Bruce Oksol said: "...the OPEC producer sought substitutes to replace Qatari condensate supplies..."

    Substitutes to replace Qatari "condensate" supplies?

    Peak Oilers argue that condensate is less desirable and worth much less than conventional crude oil because of its high API gravity.

    The same goes for shale oil. It is less desirable and worth less because it has a higher API gravity than "conventional" oil, the same as condensate.

    The argument is that condensate and shale oil should be eliminated from crude and condensate totals. If this were done, then peak "conventional" oil would have occurred when they predicted.

    But here's the rub: market prices don't bear out what the Peak Oilers claim.

    Eagle Ford condensate sells at only a $1.00 per barrel discount to Eagle Ford crude, and Eagle Ford crude sells at no discount to West Texas Intermediate (WTI).

    https://s1.postimg.org/tfhmxhrzz/Captura_de_pantalla_1282.png

    In Canada, Edmonton condensate sells at no discount to WTI, and sells at a premium to Canadian Light crude.

    https://s11.postimg.org/wt1m9wbkj/Captura_de_pantalla_1281.png

    ReplyDelete
  2. That's interesting about "Peak Oil" folks. Readers know my feelings about Peak Oil. At one time, I was firmly in their camp but that was before I understood the industry. Now I understand 1% of the industry (LOL) and no longer consider "Peak Oil" a viable "theory."

    Thank you for the links. I will move them up to the main body of the post for easier access.

    ReplyDelete