How Oil Is Formed -- A Note From Jones Oil Ireland -- March 23, 2016

This is kind of cool. I just received a personal note from "Kate" at Jones Oil Ireland -- a 100%-Irish company delivering oil and refined products to the counties in Ireland. She sent me a link to their site, "How Oil Is Formed." She must have known I used to teach as a substitute school teacher at the middle and high school levels.

Update, 1:56 p.m.: see first comment -- Jones Oil Ireland suggests that "we" will run out of oil in about 50 years. They must not have heard of the Bakken. Another Geico Rock Award nominee?

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RBN Update On Bakken CBR To The West Coast

Pacific Northwest

Link here. 

West Coast market

• somewhat different than the rest of the US
• WTI vs Alaska North Slope (ANS) delivered to Long Beach, CA
• ANS: the default crude processed by west coast refineries
• if Bakken crude sells at a significant enough discount, CBR is economical
• this post focuses on Pacific Northwest
• later, RBN Energy will focus on California
• much of CBR delivered to the PNW comes from the Bakken
• California CBR mostly from Canada, New Mexico, the Rockies (Bakken?)

PNW

• five (5) refineries -- all located in Washington State
• total refinery capacity: 647,000 bopd
• all process ANS
• no pipeline network to deliver US inland crude to the PNW
• Five refineries (now/future Mb/d):
• Tesoro: 50 / 120
• BP: 60 / 234
• Phillips 66: 30/101
• Trailstone (US Oil Refining): 40 / 42
• BP: 0 / 65 -- held up by Environmental Impact Study

Recently:

• Bakken: $37.24
• ANS: $39.26 (apparently that includes the sea-going tanker rate)
• Bakken CBR: add $10.39/bbl)
• thus: an $8 penalty to use Bakken oil

Take-or-pay / other long-term commmitments

• other "incentives" keep Bakken CBR moving to the PNW