01-23-2013, 03:23 AM
There are several inaccuracies in this post. The US is not even in the top ten for proven oil reserves:
quote:
https://www.cia.gov/library/publications...8rank.html
1. Saudi Arabia 262,600,000,000
2. Venezuela 211,200,000,000
3. Canada 175,200,000,000
4. Iran 137,000,000,000
5. Iraq 115,000,000,000
6. Kuwait 104,000,000,000
7. United Arab Emirates 97,800,000,000
8. Russia 60,000,000,000
9. Libya 46,420,000,000
10. Nigeria 37,200,000,000
The situation with Alaska oil is that it is very high in sulphur (not light sweet). This requires specific refineries to process, therefore why it is being transported for refinement. The refineries that have this capability are all down by the Gulf, the reason for the Keystone pipeline. Also, Alaska is running out of oil, explaining the production shift. The oil industry has known about the tar sands and shale oil in the midwest for a long time. It wasn't economically feasible (=profitable) when oil was $20 per barrel (under Clinton's last term, gasoline was $.95 per gallon). Now, around $100 per barrel, and with fracking, it is profitable. The latest projections are for a "stable" price of $150 per barrel. This is a 50% increase over what it is now. For us here, early last year, oil hit $110 per barrel and we were paying $5 per gallon of gas. There was some economic turmoil that brought the price down to $80 per barrel but the price of oil has been steadily climbing since then. By importing refined gasoline and diesel, there isn't going to be some magic to suddenly make their cost go lower than the crude they are being derived from.
If the Chevron refinery does shut down, it is easy to see Hawaii enter a 50% inflation rate with gas and diesel going to $8 to $10 per gallon. It will mean a lot of people will have to leave Hawaii.
"It was a majority decision to descend into the Dark Ages. Don't worry, be happy, bang on da drum all day!"
*Japanese tourist on bus through Pahoa, "Is this still America?*