Monday, September 10, 2018

The Road To California -- September 10, 2018

This is really pretty amazing when one thinks about it.

California is refining as much oil as ever -- well, at least back to 1982 -- but getting more of that oil to refine from Saudi Arabia.

And the state is doing everything it can to keep Saudi Arabia rich. LOL.

From oilprice:
  • the state can't ban drilling federal land off-shore
  • but it can ban the infrastructure needed to get oil to the coast
  • so, what will the drillers do? off-shore tankers -- this is not rocket science -- and with risk of earthquakes and geologic shifts, it makes a lot more sense to use off-shore tankers, and not pipelines
  • the state uses as much oil today as it did in 1982
  • 1982: most of California's oil come from state resources
  • 2017: 31% from state resources
  • 2017: 57% from overseas
  • biggest foreign source: Saudi Arabia, followed by Ecuador and Columbia
  • California refiners obviously optimized for heavy oil
  • California's CO2 emissions -- FWIW -- have risen at an annual rate of 1.5%
And so it goes.

What a great country.

And then my brother-in-law wonders why gasoline is so expensive in California. From oilprice:
  • WCS: $34 / bbl -- optimum oil for California, from Canada's western oil sands
  • ANS:  $75 / bbl 
  • OPEC basket: $74
  • California's Buena Vista: $74
  • California's Midway-Sunset: $70
  • Saudi Arabia, Arab Heavy: $74
The rest of the US is refining with $50 oil. At the low end.

And don't even get me started on California regulations.

State tax on gasoline? California ranks #7.  North Dakota, #35; Texas, #43.

The writing is on the wall: if California wants to do more to lower its annual CO2 emissions -- FWIW -- the state is going to have to do a lot more to discourage Hollywood rich and elite driving those Humvees.

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