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Re: nemo - that article is TOTAL BS !!! -> Re: Americans have been told for years that if only we drilled more oil, we would see a drop in gasoline prices.

By: monkeytrots in POPE IV | Recommend this post (0)
Wed, 25 Jan 17 6:59 AM | 46 view(s)
Boardmark this board | POPES NEW and Improved Real Board 		Msg. 18924 of 47202
(This msg. is a reply to 18919 by monkeytrots)
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One of the commentators nailed A COUPLE MORE in the coffin for GW's article.

kayman >>... Cushing is already connected to the Gulf. The northern leg has nothing to do with it.

And the price of "Western Canada Select" (diluted Heavy oil) has F^CK ALL TO DO with the price of light sweet oil like West Texas or Brent.

Sometimes George hits a home run, sometimes he's not even in the right ballpark.

Kayman is absolutely correct on both points. Cushing has MAJOR PIPELINES to GOM (wth do you think it is such a MAJOR OIL DEPOT).

And WESTERN CANADA SELECT (Keystone oil) is a HEAVY OIL - which is NOT DESIRABLE FOR THE ADDITIONAL COSTS OF EXPORT TO THE WORLD MARKET. That oil will be refined in the USA - and if, and only if, the cost of 'gas' produced from the refining is cheaper and be more profitably exported, will a single drop be exported. It's about damned time the US refining capacity catches up to DOMESTIC DEMAND - and we actually (which I doubt) do export more than we import. MOST of imported product goes to the N.E. USA - NOT THE GOM. It's GEOGRAPHY, SHIPPING COSTS, and SUPPLY AND DEMAND. Not rocket science.




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The above is a reply to the following message:
nemo - that article is TOTAL BS !!! -> Re: Americans have been told for years that if only we drilled more oil, we would see a drop in gasoline prices.
By: monkeytrots in POPE IV
Wed, 25 Jan 17 6:43 AM 		Msg. 18919 of 47202

Brent Crude trades at a premium to WTI for one reason and one reason only. The GEOGRAPHY of supply and demand.
Both are light sweet crudes, and HISTORICALLY WTI trades at a PREMIUM OVER BRENT - not at a $20/barrel (a blatant lie - total propaganda) discount to BRENT.

So that particular article in zerohedge is not only FALSE - they can also blow it out their butts. TOTAL BULLSHIT.

Source: http://commodityhq.com/education/crude-oil-guide-brent-vs-wti-whats-the-difference/

With these two key factors, investors can begin to price these different types of oil on the world market. Currently, there are two major benchmarks for world oil prices, West Texas Intermediate (WTI for short) and Brent crude oil. Both are light, sweet crude oils although WTI is generally sweeter and lighter than its European counterpart. As a result of this, WTI often trades at a premium, usually by just a few dollars a barrel. However, thanks to a Libyan crisis, which has decreased the supply of light, sweet crude in the European region, and a supply glut at the main storage facility of WTI in Oklahoma, the premium/discount situation has flipped and now Brent is more expensive than WTI.

And that doesn't even address the readily egregious lie about $4.00+ per gallon gasoline that others have already commented on.

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