Forum Discussion
Fezziwig
Jun 18, 2014Explorer
LindsayRichards wrote:
All of the Canadian oil from that area is presently coming to American refiners and being sold in the US.
If sold to a non-captive refiner it is sold at the low raw material price, not at high priced retail. The foul ingredients that make the raw tarsands cheap are extracted and dumped into USA air, water, air and offshore waters, and the sweet refined products sent to China at high prices.
It is finished oil (and or cracked products like machine oil, petrol, kerosene, etc.)that is valuable and makes it fungible, not the******that made it cheap tarsands. We will eat the******and China will get the sweet stuff.
LindsayRichards wrote:
Rail cars (owned by Warren Buffet) are being used to carry the oil now.
and it's a horrible situation as they de-rail, pollute, and explode and kill dozens of people at a time. And NO ONE has the political power to stop them from shipping large amounts of explosive tarsands sludge through crowded urban areas as they please.
LindsayRichards wrote:
The Keystone XL will be used to increase the existing shipments. Oil is a commodity and is sold to the highest bidder. American refiners will be in the best position to buy it as it is already here and no shipping is involved.
Refinery source oil is fungible and sells at the same price everywhere in a fair market.
LindsayRichards wrote:
We already have over 200,000 miles of large crude oil pipelines in our infrastructure.
And these new pipelines will be built by the new ultrathin tubing that is even more subject to rupture than the old standard tubing (which already has a poor record, especially as pumping volume increases and internal pumping pressures increase). The new pipes are chosen to save money because they use less steel and are thinner. They are also made exclusively in China so USA gets no manufacturing benefit.
The ultrathins are even more subject to rupture and leakage as pressures must be greatly increased to pump the heavy sludge of wet sand and tar instead of the less viscous sweet oil.
And if you like the Chinese steel so much, talk to the SF Bay Bridge engineers about the Chinese steel in their bridge that is failing regularly. Their arms were twisted to reduce steel standards when China couldn't meet USA and international standards.
LindsayRichards wrote:
The notion that it will not be sold in the US has been bouncing around the internet for years and defies logic. No financial reason to ship it to half way around the world to China, when it can be used right here. Think it through.
It can be refined here, but the resulting finished cost will be so high it'll have to be shipped elsewhere. Are those customers going to take our sludge and benzene and tar also? Or must we dump it in our soil and water and air? Who will pay those (externalities) costs and how will that cost be included in end-user cost? Or are we, in the US, expected to destroy our homeland for the sake of this rogue international market?
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