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.
No comments:
Post a Comment