Originally Posted by pitzel
Originally Posted by Vuflanovsky
Any word on what the export vs. U.S. domestic draw on this oil will be?? I'm sure the majority percentage of this oil coming to Houston and Port Arthur will be exported but how much of a majority?? I've seen figures close to 70%, so I would assume it's in that range. Like they've said for some time...it's basically oil through the U.S. ...not to it. You'd think that anyone presenting the XL Pipeline as a 40 cent a gallon drop in U.S. gas prices might either be a disingenuous liar or woefully uninformed.
Nearing 100% most likely, as the refineries in Houston, Port Arthur, etc., have a preference for heavier/sour oils, compared to the very light sweet, basically condensate, that comes from the shale wells.
Also access to low-cost Canadian feed will keep prices lower. Illinois, Minnesota, Wisconsin, etc., have enjoyed very low gas prices because the Koch's realized at an early point in the development of the resources in Canada that it'd make a lot of sense to feed their refineries with cheap Canadian feed.
Yeah, that was basically my question because my understanding was the XL Pipeline was never set up to benefit the U.S. consumer other than in selected markets and dependent on refineries...it was set up for export to Latin America and Europe. So if someone was saying that full capacity through the pipeline would mean a significant drop in U.S. gas prices that wouldn't be correct.
Originally Posted by Vuflanovsky
Any word on what the export vs. U.S. domestic draw on this oil will be?? I'm sure the majority percentage of this oil coming to Houston and Port Arthur will be exported but how much of a majority?? I've seen figures close to 70%, so I would assume it's in that range. Like they've said for some time...it's basically oil through the U.S. ...not to it. You'd think that anyone presenting the XL Pipeline as a 40 cent a gallon drop in U.S. gas prices might either be a disingenuous liar or woefully uninformed.
Nearing 100% most likely, as the refineries in Houston, Port Arthur, etc., have a preference for heavier/sour oils, compared to the very light sweet, basically condensate, that comes from the shale wells.
Also access to low-cost Canadian feed will keep prices lower. Illinois, Minnesota, Wisconsin, etc., have enjoyed very low gas prices because the Koch's realized at an early point in the development of the resources in Canada that it'd make a lot of sense to feed their refineries with cheap Canadian feed.
Yeah, that was basically my question because my understanding was the XL Pipeline was never set up to benefit the U.S. consumer other than in selected markets and dependent on refineries...it was set up for export to Latin America and Europe. So if someone was saying that full capacity through the pipeline would mean a significant drop in U.S. gas prices that wouldn't be correct.
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