American Greed Watch

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Jamie
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#121
Report 14 years ago
#121
(Original post by Moncal)
We have stockpiles and undrilled reserves if I'm not mistaken.
That what i said...
A huge set of stockpiles in some big limestone caves.
They were tring to persuaade the french to start doing the same some years ago (apparently the french have some suitable caves) but they love their nuclear power so were rather reluctant. I think the US govt had basically foreseen the developing countries hitting the stage they are in now where fuel use rise is pretty exponential.
O and by the way i think your 'reserves' are pretty turdy (quality wise). Very heavy oil if i recall.
tkfmbp
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#122
Report 14 years ago
#122
(Original post by foolfarian)
That what i said...
A huge set of stockpiles in some big limestone caves.
They were tring to persuaade the french to start doing the same some years ago (apparently the french have some suitable caves) but they love their nuclear power so were rather reluctant. I think the US govt had basically foreseen the developing countries hitting the stage they are in now where fuel use rise is pretty exponential.
O and by the way i think your 'reserves' are pretty turdy (quality wise). Very heavy oil if i recall.
I'm not an organic chemist.....why is 'heavy' oil a problem ?
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psychic_satori
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#123
Report 14 years ago
#123
(Original post by tkfmbp)
I'm not an organic chemist.....why is 'heavy' oil a problem ?
It's the oil that is left after the refining process. It's heavy because it tends to have impurities in it, which hinder its ability to flow nicely. It's easier to drill for the lighter oils, and it's easier to process them. However, heavy oil is not a bad thing. Heavy oil is what is used in steam plants and other high-volume assemblies. Also, there has been tremendous progress made in processing heavy oil efficiently and in a cost-effective manner. If one possesses the proper technology, it can be much more profitable to buy the cheaper heavy crude than light crude oil.

In short, if you're in Uganda, a large stockpile of heavy crude wouldn't be that useful, because the technology to process profitably it is limited to some of the larger oil companies. That's not really much of a problem for the US, though.
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Jamie
Badges: 18
#124
Report 14 years ago
#124
(Original post by psychic_satori)
It's the oil that is left after the refining process. It's heavy because it tends to have impurities in it, which hinder its ability to flow nicely. It's easier to drill for the lighter oils, and it's easier to process them. However, heavy oil is not a bad thing. Heavy oil is what is used in steam plants and other high-volume assemblies. Also, there has been tremendous progress made in processing heavy oil efficiently and in a cost-effective manner. If one possesses the proper technology, it can be much more profitable to buy the cheaper heavy crude than light crude oil.

In short, if you're in Uganda, a large stockpile of heavy crude wouldn't be that useful, because the technology to process profitably it is limited to some of the larger oil companies. That's not really much of a problem for the US, though.
Heavy oil is worth less not just because of impurities but because the hydrocarbon chains tend to be longer, and breaking them requires extra energy. Thus no matter what technology you possess, a tonne of heavy oil is worth markedly less than a tonne of light oil. Especially when you factor in the extra costs.
Alaskan oil is heavy.
THe UK gets most of its oil from the north sea. Our oil is very light so (hence why there are so many gas paltforms too) and so worth markedly more. Oil is traded ina standardised ofrm though (be it brent or NYDEX)



9 October 2002
Crude oil price plunges after flirting at $31 level
World oil prices were down yesterday after trading well over the $30 mark earlier this week on fears that the U.S. was about to go to war in Iraq.

Brent futures stood at $28.11 a barrel; New York light crude was at $29.49. On the London oil market, Brent crude oil for November delivery sold for $27.96. The closing value of Dubai crude oil in London was $26.81.

These prices are significantly lower than two weeks ago.

Certainly one reason the prices have fallen is President Bush's speech on Monday night. He seemed to say it was not absolutely certain the U.S. would invade Iraq.

Also, the American Petroleum Institute said Tuesday that U.S. crude stocks fell 2.6 million barrels to 273.3 million last week, taking them down to their lowest level since 1976 and 32.6 million lower than the same time last year but not as low as expectations.

Hurricane Lili hit the oil-producing U.S. Gulf Coast last week, and the thinking was that she would cost a larger chunk of the country's inventories.

Separately, U.S. purchases of Iraqi oil spiked recently. Why? Iraqi oil is cheaper, and the U.S.'s tough stance on Iraqi oil is fading.


Heres an example of the american stance on oil from way back in 2002


"9 October 2002
Crude oil price plunges after flirting at $31 level
World oil prices were down yesterday after trading well over the $30 mark earlier this week on fears that the U.S. was about to go to war in Iraq.

Brent futures stood at $28.11 a barrel; New York light crude was at $29.49. On the London oil market, Brent crude oil for November delivery sold for $27.96. The closing value of Dubai crude oil in London was $26.81.

These prices are significantly lower than two weeks ago.

Certainly one reason the prices have fallen is President Bush's speech on Monday night. He seemed to say it was not absolutely certain the U.S. would invade Iraq.

Also, the American Petroleum Institute said Tuesday that U.S. crude stocks fell 2.6 million barrels to 273.3 million last week, taking them down to their lowest level since 1976 and 32.6 million lower than the same time last year but not as low as expectations.

Hurricane Lili hit the oil-producing U.S. Gulf Coast last week, and the thinking was that she would cost a larger chunk of the country's inventories.

Separately, U.S. purchases of Iraqi oil spiked recently. Why? Iraqi oil is cheaper, and the U.S.'s tough stance on Iraqi oil is fading."

It as taken from the economist.
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