Dumb upstream engineer question...What's to stop US/Canada/Mexico from being energy independent? Relatively low cost Saudi oil? Can't we tell them to take a hike and take care of ourselves?
Yes they are.Dan Scott said:
XOM and LNG about to blowup down there
That is why Corpus is seeing a boom in exports. The refineries there aren't equipped to handle the light sweet crude, mainly the heavy crude. There is an article in OilPro talking about this same subject.GarlandAg2012 said:
Our refineries aren't really set up to handle that much light sweet crude. There are probably other reasons too.
oil is a fungible commodity. there will never be such a thing as energy independence.jbanda said:
Dumb upstream engineer question...What's to stop US/Canada/Mexico from being energy independent? Relatively low cost Saudi oil? Can't we tell them to take a hike and take care of ourselves?
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So what is the correct term for the situation we're headed for in which we domestically produce more energy than we consume?
......doesn't that make us energy independent in any practical economic sense of the term, despite the interdependencies of the global market?GarlandAg2012 said:
A net oil exporter.
FHKChE07 said:
Refitting our refineries to refine simpler crude would be a giant waste of money.
because refineries are built to refine cheap crudes. By cheap I meant heavy, longer hydrocarbon chains.AgLA06 said:FHKChE07 said:
Refitting our refineries to refine simpler crude would be a giant waste of money.
Why?
Cheap is relative. While the crude is cheaper the capex and opex is higher to refine heavy crudes. As the differential between light and heavy crudes becomes closer, or turns around in some cases, the lighter crudes become cheaper (more profitable) to use as a feedstock. The equipment to refine the light crudes is cheaper than the heavy crudes it just takes years to design order and install the equipment.Ragoo said:because refineries are built to refine cheap crudes. By cheap I meant heavy, longer hydrocarbon chains.AgLA06 said:FHKChE07 said:
MRefitting our refineries to refine simpler crude would be a giant waste of money.
Why?
That would be fantastic.Quote:
If there were another OPEC embargo, there would still be a lot of strife.
aggie028 said:
ESPs rarely if ever worth it in resource plays. Agree with Corpus.
I have a hard time believing 5% based on how many are run in West Texas but I don't have any data to support my belief.
GarlandAg2012 said:
Not all operators do this. Some try to leave wells on ESP for the long term and have major issues with sand and gas. I think that's what Corpus is talking about.