That Pipeline

[thør]

I do like the trains.

A civilized mode of transportation.

 

[koalabear]

Just wait till it hits 4 bucks, then you can complain

I think I was paying 3.60 or something this weekend...didn't really pay attention cause I just wanted it...you want to run horses, you gotta expect to feed them

People will pay whatever the price is. It just means less money for other things that support the economy.

 

[Peregrinator]

Because money spent on gasoline doesn't support the economy?

 

[VaticanAssassin]

Because money spent on gasoline doesn't support the economy?

It supports a small sector of the economy. IA sector that seems to be doing pretty well and probably does not need the support....

Conoco, Exxon, Chevron and Shell -– profits last year of $137 billion.

Profits over the past 10 years: $1 trillion

 

[koalabear]

Because money spent on gasoline doesn't support the economy?

Sure it does, everyone can work at gas stations.

 

[Peregrinator]

It supports a small sector of the economy. IA sector that seems to be doing pretty well and probably does not need the support....

Conoco, Exxon, Chevron and Shell -– profits last year of $137 billion.

Profits over the past 10 years: $1 trillion

Where does it go from there?

 

[Peregrinator]

Sure it does, everyone can work at gas stations.

So the employees/shareholders at the companies that sell gas do what with their dividends and paychecks?

 

[VaticanAssassin]

Where does it go from there?

Off shore tax shelters? Fund additional layoffs? Union presidents pockets?

 

[Peregrinator]

off shore tax shelters?

Hey, that's an economy too. If energy companies stopped using them, they wouldn't be there to provide that service for the rest of us.

 

[VaticanAssassin]

Hey, that's an economy too. If energy companies stopped using them, they wouldn't be there to provide that service for the rest of us.

You are getting very close to arguing for trickle down economics...

 

[chillywilly2]

It supports a small sector of the economy. IA sector that seems to be doing pretty well and probably does not need the support....

Conoco, Exxon, Chevron and Shell -– profits last year of $137 billion.

Profits over the past 10 years: $1 trillion

Hell...Obama can spend that in a week

 

[Peregrinator]

You are getting very close to arguing for trickle down economics...

I'm enjoying pointing out that yet again the marsupial has used his prehensile tail to pull the trigger, forgetting that it was in his pouch, and shot his own dick in the process.

Either that or he's absolutely right, and trickle down was horseshit all along.

 

[ivantheterrible]

http://forum.literotica.com/showpost.php?p=40177928&postcount=1

 

[koalabear]

So the employees/shareholders at the companies that sell gas do what with their dividends and paychecks?

There ya go......http://i305.photobucket.com/albums/nn233/koalabear_photo/ththsidetracked.gif

 

[Peregrinator]

http://forum.literotica.com/showpost.php?p=40177928&postcount=1

I forgot to give you credit. I totally stole the link from you.

People will pay whatever the price is. It just means less money for other things that support the economy.

Because money spent on gasoline doesn't support the economy?

Sure it does, everyone can work at gas stations.

So the employees/shareholders at the companies that sell gas do what with their dividends and paychecks?

There ya go......http://i305.photobucket.com/albums/nn233/koalabear_photo/ththsidetracked.gif

Just say that you fucked up again while trying to think.

 

[koalabear]

I forgot to give you credit. I totally stole the link from you.










Just say that you fucked up again while trying to think.

You fucked up again mercmoron, higher gas prices take money away from the general economy.

 

[trysail]

The dumbfucks who attempted to sabatoge the Keystone pipeline with a barrage of utter nonsense horsecrap are nothing but obstructionists who will eventually— one way or another— be thwarted. The Athabaskan petroleum will be consumed; economics will out, demand will be supplied.


_____________________

http://www.bloomberg.com/news/2012-...es-to-ease-crude-logjam-corporate-canada.html



Enbridge Pipelines to Ease Crude Logjam
By Jeremy van Loon and Brad Olson
March 28, 2012

Enbridge Inc.’s plans to expand U.S. pipeline capacity may help generate as much as $15 billion for Canadian oil-sands producers such as Suncor Energy Inc. and boost government tax revenue as Alberta crude begins to command a higher price.

Canadian crude has been backing up in the U.S. trading hub at Cushing, Oklahoma, along with oil produced in North Dakota, forcing down prices. Western Canada Select oil, a Canadian benchmark, has sold for about $42 a barrel less than world prices this year, a record gap, according to data compiled by Bloomberg. The differential is more than four times greater than the same period two years earlier.

Two projects announced on March 26 by Calgary-based Enbridge and U.S. partner Enterprise Products Partners LP would expand crude capacity to the Gulf Coast by 500,000 barrels a day by 2014, a big step toward narrowing the price gap, said Roger McKnight, senior petroleum adviser at En-Pro International Inc., an Oshawa, Ontario-based energy adviser.

“That discount can absolutely be cut in half,” McKnight said yesterday in a telephone interview. “Something’s got to give because you have a huge economy in Alberta and the rest of Canada dependent on getting this oil to market.”

Reducing the gap just by half would represent $15 billion a year in additional value for Canada’s estimated 2 million barrels a day of exports to the U.S., according to Bloomberg data.

Cross-Town Competition
Enbridge will probably be the first to add additional capacity to transport Canadian crude to new markets as it races cross-town competitor TransCanada Corp., whose Keystone XL conduit is being built in sections after President Barack Obama blocked its Canada-U.S. cross-border leg in January.

Enbridge’s plan may not face as many challenges as the Alberta-to-Texas Keystone XL project because it doesn’t cross the border, so it won’t need U.S. State Department approval, and Enbridge’s southern pipeline expansion can be built on existing right of way.

“Make no mistake, this suite of assets does not face the same pressure point as the competing XL system,” Carl Kirst, an analyst with BMO Capital Markets in Houston, said today in a note to clients.

Output from the oil sands and new formations including North Dakota’s Bakken shale may increase by 3.5 million to 4.5 million barrels a day by 2020, said Jackie Forrest, senior director of global oil for IHS Cambridge Energy Research Associates. Without new pipelines, the oil will get backed up in Canada and the U.S. Midwest, she said.

‘Bottlenecks’
“This expansion of the Enbridge system will help get rid of some of those bottlenecks,” Forrest said yesterday in a telephone interview. “That should help to narrow the disconnect between Canadian and other U.S. crudes and the rest of the world.”

The Enbridge and TransCanada lines together would add more than 1.2 million barrels of capacity to transport crude produced in Canada’s oil sands to Texas refineries.

More oil arriving in the U.S. from Canada would boost refiners including Marathon Petroleum Corp., Valero Energy Corp. and Royal Dutch Shell Plc, which faced declining margins on processing heavy crude on the U.S. Gulf Coast as it began to trade at a premium to lighter grades of U.S. oil for the first time in 20 years, according to data compiled by Bloomberg.

Refiners invested more than $25 billion to upgrade plants in anticipation of added volumes from Canada that theoretically could improve the profits of processing crude because heavy oil has traditionally been cheaper.

Mayan Crude
The lack of supply from Canada, combined with added demand created by the upgrades, has made heavy oil more expensive for the first time since 1992. Mayan crude, a heavy grade from Mexico, cost an average of $5.89 more than lighter West Texas Intermediate, the U.S. benchmark, so far in 2012. In the first quarter of 2010, WTI cost $9.03 more a barrel than the Mexican crude, according to data compiled by Bloomberg.

The first of Enbridge’s plans is a $2 billion project with Enterprise to reverse the flow of the Seaway pipeline and expand its capacity. When completed in 2014, as much as 850,000 barrels a day will flow from Cushing to the U.S. Gulf Coast, the companies said.

Enbridge’s Flanagan South project, which would cost $2.8 billion and be completed around the same time, would be built along the route of its existing Spearhead pipeline and have a capacity of 585,000 barrels a day.

Existing Mainline
The company’s existing crude mainline to Chicago has spare capacity that will allow Enbridge to boost shipments of Canadian oil to the U.S. by as much as 500,000 barrels a day, Vern Yu, vice president of business development and asset management at Enbridge, said yesterday in a telephone interview.

With additional projects the company is considering, Enbridge could increase that amount to 1 million barrels a day, he said.

TransCanada’s Keystone XL and Enbridge’s system expansions will both be needed, Yu said.

“If you look at the supply picture coming out of western Canada and North Dakota’s Bakken, we think both pipelines are necessary to move the crude out of those producing regions,” he said. “The 2015 to 2017 time frame is when both networks are needed.”

Pipeline development has become a rallying cry for Prime Minister Stephen Harper, who has said new markets for Canadian oil is in the “national interest.” Federal Natural Resources Minister Joe Oliver has called environmental groups who oppose oil-sands pipeline development “enemies” of Canada.

Exports to U.S.
About 99 percent of Canadian crude exports go to the U.S., with most of that ending up in the Midwest. Currently, producers including Cenovus Energy Inc. are resorting to freight trains to transport crude. Other proposals for additional routes include increasing pipeline capacity to Canada’s Pacific coast as well as reversing or building new lines to the Atlantic provinces through Quebec.

Expanding exports to the U.S. and tapping markets in Asia may raise the price received by Canadian producers by $13.60 a barrel by 2030 and add an additional C$131 billion ($131.2 billion) to Canada’s economy from 2016 to 2030, according to a Dec. 15 study by the University of Calgary’s School of Public Policy.

Export Revenue
More than two-third of Canada’s total crude oil production of about 3.5 million barrels was exported, according to the C.D. Howe Institute in a Feb. 29 report. Energy products, also including hydro power and natural gas, accounted for more than 22 percent of Canada’s export revenue in 2010, the Toronto-based think tank said.

Oil is Canada’s most valuable export and every additional dollar increase in the value of oil over a 12-month period adds C$223 million to the province of Alberta in tax revenues and royalties, the government says.

Enbridge and Houston-based Enterprise are scheduled to move more than 150,000 barrels a day of capacity on the reversed Seaway pipeline by June 1. That will rise to 400,000 barrels by 2013 after pump additions and upgrades, and more than 850,000 barrels by 2014, the companies said.


http://www.bloomberg.com/news/2012-...es-to-ease-crude-logjam-corporate-canada.html

 

[trysail]

When the dopes succeeded in sabotaging the Keystone pipeline, they were contributing to the death knell of East Coast refineries and killing those jobs.

The dopes know nothing of how critically important the differential between Brent and WTI is. Hell, the dopes don't even know the differential exists and— god knows— anything about why it even exists or reached historic levels this past year.


_______________________

Carlyle in Sunoco Talks Shows Private Equity Sees Rebound
By Jason Kelly and Bradley Olson
April 23, 2012
http://www.bloomberg.com/news/2012-...arlyle-on-philadelphia-refinery-stake-1-.html

...

East Coast Disadvantage
Refineries on the East Coast have been hurt because their only source of crude is based on Brent, the global benchmark, which sold for an average $15.69 a barrel higher in 2011 than U.S.-produced oil, according to data compiled by Bloomberg. The difference between the cost of crude and the price at which refiners can sell fuel on the U.S. East Coast sunk to an average of $7.94 a barrel last year, the lowest point since 2003, according to data compiled by Bloomberg.

Although Sunoco has lost money in refining in 10 of the last 11 quarters, the fortunes of the Philadelphia plant could improve if the company is able to buy cheaper oil produced in Canada and North Dakota...


O’Malley’s Deals
With oil companies selling, buyout firms have picked up refining assets on the cheap. Blackstone, the world’s largest private-equity firm, and energy specialist First Reserve formed PBF Energy Co. in 2008 with Thomas O’Malley, a veteran oil industry investor and trader. PBF bought a Delaware City, Delaware refinery for $220 million in 2010. PBF, which also bought plants in New Jersey and Toledo, Ohio, filed for an initial public offering last November.

“You have to buy very cheaply, and have an exceptional management team that knows how to operate the assets safely and reliably, and can source and finance purchases of crude oil and the sale of refined products efficiently,” said David Foley, a senior managing director at Blackstone. “Petroleum refining is a very tricky, very volatile industry. Even if you buy a refinery for almost nothing, you still have to invest a lot of capital for maintenance, environmental compliance and crude oil inventories...”

...Refining is a cyclical business that can reap a bounty depending on product prices, the location of a given plant and its processing capabilities. The ability to process heavier, cheaper grades of crude, or lower-priced oil produced in North Dakota and other areas in the Midwest last year drove profits for refiners such as Valero Energy Corp. and HollyFrontier Corp. to the highest level since 2007.

Tightening Capacity
On the East Coast, refineries have been at a disadvantage because of falling demand for gasoline, excess supply from European imports and competitors’ ability to buy crude for lower prices in other parts of the country. Oil produced in North Dakota sold for $46.25 less than the global benchmark on Feb. 9, according to data compiled by Bloomberg...



http://www.bloomberg.com/news/2012-...arlyle-on-philadelphia-refinery-stake-1-.html

 

[trysail]

http://www.bloomberg.com/news/2012-...for-u-s-permit-on-portion-of-keystone-xl.html



TransCanada Re-Applies for Keystone XL Pipeline Permit
By David Wethe and Bradley Olson
May 4, 2012

TransCanada Corp. has re-applied for a U.S. permit for the Keystone XL oil pipeline, seeking permission to build a $5.3 billion portion of the original project from the Canadian border to Steele City, Nebraska.

The application uses already reviewed routes through Montana and South Dakota and will add an “alternative” path through Nebraska determined by the state’s Department of Environmental Quality, according to a statement from the Calgary-based company today.

“There is no win by denying this pipeline,” TransCanada Chief Executive Officer Russ Girling said today in a telephone interview. “There are several wins -- energy security, economic development, jobs, wealth creation and less of an environmental impact -- as a result of approving the pipeline.”

TransCanada’s prior application for the Keystone XL project, stretching from Alberta to the Gulf Coast, was rejected by President Barack Obama on Jan. 18 in part because of potential environmental risks in Nebraska.

“The company’s ‘new’ application is nothing but a rehash, riddled with the same environmental risks that raise the same unanswered questions while providing no new rationale for why it should be built,” Susan Casey-Lefkowitz, director of the Natural Resources Defense Council’s international program, said in an e-mailed statement.

NRDC and other environmental groups say the risk of an oil spill from Keystone XL poses a threat to Nebraska’s Sandhills area and the Ogallala aquifer, which provides drinking water to 1.5 million people.

[ The above statement (highlighted in blue) is what is known in the propaganda trade as THE BIG LIE. Anyone who knows anything about pipelines knows that it is a virtually impossible outcome. So— there are only two possible explanations for the statement:
(1) whoever makes it is so completely uninformed that they have no idea what they are talking about and should, thus, be ignored or
(2) it is a deliberate, intentional and malicious falsehood and should, thus, be ignored. ]​

Nebraska Route
Republicans, including presidential candidate Mitt Romney, have attacked Obama for blocking the pipeline, which they say will bring jobs and energy security to the U.S.

“I will build that pipeline if I have to myself,” Romney said last month.

Nebraska officials are studying a new TransCanada proposal that would route the project through the eastern part of the state. The Department of Environmental Quality will begin holding hearings next week before conducting an environmental impact study. The study may be concluded as soon as August, Girling said.

Construction Start
TransCanada said its new application relies on 10,000 pages of review that found the project would have minimal effect on the environment. The day after the old permit was rejected, the company said it may split the project, seeking federal permission for the leg that crossed the border and going ahead with construction of other portions of it.

“There is no legitimate reason for delaying this project any further,” Marty Durbin, executive vice president of the industry-funded American Petroleum Institute, said in a statement. “Keystone XL is a job creator and will bring more reliable Canadian oil to the market, which could help bring downward pressure on prices at the pump.”

The U.S. State Department has estimated it would provide jobs for as many as 6,000 construction workers. The pipeline needs approval from the department because it crosses an international border. The department plans to hire a third-party contractor to review the new proposal and will cooperate with Nebraska and other federal agencies, according to a statement released today.

Previously, the State Department estimated that the review may be completed by the first quarter of next year, according to the statement.

Permit Expected
As originally envisioned, the $7.6 billion project would’ve expanded TransCanada’s existing Keystone pipeline to carry as much as 830,000 barrels a day from Canada’s oil sands and North Dakota’s Bakken Shale along a 1,661-mile (2,672-kilometer) path to Gulf Coast refineries. The scaled-back proposal covers 1,179 miles of the northern portion of the project.

TransCanada expects to get its permit in the first quarter and finish construction by early 2015, the company said. It plans to begin construction as soon as next month on a $2.3 billion pipeline from Cushing, Oklahoma, to Texas refineries, the southern portion of the original Keystone XL proposal...

“It is in the interest of our national security to be able to transport oil from Canada and North Dakota to refining centers by pipeline rather than by rail or truck, which have higher emissions,” Amy Myers Jaffe, director of the Baker Institute Energy Forum at Rice University in Texas, said in a phone interview today. “Standing our ground like Custer over pipeline infrastructure is irrational.”



http://www.bloomberg.com/news/2012-...for-u-s-permit-on-portion-of-keystone-xl.html

 

[trysail]

Canada is angry— and, of right, ought to be.


___________________

http://www.bloomberg.com/news/2012-05-08/canada-is-world-s-biggest-oil-loser-with-price-spread.html



Canada Is World’s Biggest Oil Loser With Price Spread
By Greg Quinn and Doug Alexander
May 8, 2012

Canada buys high and sells low when it comes to crude oil, costing the world’s 10th largest economy billions in lost revenue as it expands production from one of the world’s largest energy deposits.

The gap between Alberta’s exported Western Canada Select and Brent oil imported into Ontario and Quebec was about $30.50 a barrel yesterday, and that difference is creating a drag on growth according to Bank of Canada Governor Mark Carney.

Annual losses of about C$19 billion ($19 billion) may persist for a couple of years amid a lack of ready alternatives for oil sands bitumen. TransCanada Corp.’s Keystone XL pipeline to U.S. Gulf coast refineries was delayed by President Barack Obama while Enbridge Inc.’s proposed Northern Gateway project to the west coast faces environmental hearings and growing opposition in British Columbia. There are no advanced proposals to ship oil from Alberta east to the rest of Canada.

The price difference “highlights the importance and potentially the value of pipelines in Canada that move our oil on an east-west axis,” said Jim Prentice, vice chairman of Canadian Imperial Bank of Commerce and a former minister for the environment and industry. “That’s lost corporate revenue, government income tax, government royalties.”

CIBC estimates losses to the economy of at least C$18 billion a year, while Bank of Montreal economists say the oil- price gap costs about C$19 billion.


“That differential is probably going to stick for some time,” [given] Middle East tensions that may keep Brent prices elevated and dim prospects for a quick end to the glut of Canadian exported oil at Cushing, Oklahoma...


Economic Impact
In a 2005 report, the Bank of Canada said higher oil prices benefited the economy, as the boost from increased investment outweighed the drag on energy consumers such as factories. The bank updated that view last month, saying that oil market developments this year have hurt Canada because “not all oil prices have risen equally,” with the price gap reducing Canada’s real domestic income.

Canadian oil-sands producers are ramping up investment that will more than double output from Northern Alberta’s bitumen fields to 3.5 million barrels a day by 2025, according to the Canadian Association of Petroleum Producers. Production has already risen from just over 1 million barrels a day in 2005, according to provincial government figures.

Still, higher output hasn’t been enough for Canada to escape a deficit in its broadest measure of trade, the current account. Being a net oil exporter with a current-account gap makes Canada the biggest member of a club that includes Mexico and Sudan. The International Monetary Fund projects Canada will remain in a current-account deficit through 2017.

Energy Superpower
The drag from energy may blunt Prime Minister Stephen Harper’s efforts to brand Canada as an energy superpower. Finance Minister Jim Flaherty’s March 29 fiscal plan included steps to accelerate environmental reviews of major energy projects.

The opposition New Democratic Party objects to fast- tracking new pipelines, arguing better environmental controls are needed and that Canada should consider refining bitumen at home instead of exporting it to Texas.

“This is the Wild West all over again, breaking down the basic fundamentals and saying that all decisions with regards to oil and pipelines will be political decisions,” Nathan Cullen, an NDP lawmaker from British Columbia, told reporters May 4.

Some 52 percent of British Columbia residents oppose the Northern Gateway proposal according to a Forum Research Inc. telephone poll taken April 11, up from 46 percent in January. The pipeline, which would carry crude from Alberta to the Pacific Ocean at Kitimat, British Columbia, has been opposed by environmental and aboriginal groups, who say a spill along the coast would be catastrophic.

Better Prices
There are efforts to rework existing pipelines to fetch better prices for Canadian oil, including Kinder Morgan Inc.’s proposed expansion of the Trans Mountain line to Vancouver and the reversal of the Seaway line owned by Enterprise Products Partners LP and Enbridge between Cushing and Houston. As well, TransCanada re-applied for a U.S. permit for Keystone XL on May 4, seeking permission to build a $5.3 billion portion of the original project from the Canadian border to Steele City, Nebraska.

Still, “Canada still exports primarily to the U.S.,” said Mazen Issa, Canada macro strategist at TD Securities Inc. in Toronto. “If you diversify it may be the case where you don’t end up on the short end of the stick,” he said.

High prices for oil and other exported commodities have helped keep the Canadian dollar at about parity with the U.S. dollar, adding to pressure on manufacturers, based primarily in Ontario and Quebec, who have fired 13 percent of their workforce in the last five years.

“If I had my preferences as to whether we have a rapidly growing oil and gas sector in the west or a lower dollar benefiting Ontario, I’d tell you where I stand - with a lower dollar,” Ontario Premier McGuinty said in February.



http://www.bloomberg.com/news/2012-05-08/canada-is-world-s-biggest-oil-loser-with-price-spread.html

 

[trysail]

Build it.

Build it now.

...Only four states -- Alaska, North Dakota, Texas and Louisiana, all beneficiaries of the energy boom -- have reached or surpassed their previous peaks in employment...

http://www.bloomberg.com/news/2012-...-to-jobs-as-u-s-workforce-dynamism-fades.html

 

[Peregrinator]

Lucre uber alles!

 

[trysail]

Lucre uber alles!

One could be forgiven for wondering if you like keeping people unemployed and dependent.


http://www.npr.org/2012/06/06/154456406/young-adults-without-degrees-struggle-to-find-work

 

[Peregrinator]

Lucre uber alles!

 

[trysail]

Lucre uber alles!

If it is your intent to have others conclude that you are a lobotomized automaton, repetition of that kind of response will do the trick.