Keystone Oil pipe line

[Oldschool]

Are there any Texas oil refinery workers on this board?

I'm trying to figuere out what the advantage of shipping Alberta tar sands oil all the way to Texas for refining is?

This is heavy high sulpher crude that needs to be run through an upgrader before its even considered refinable.

Texas crude is generaly better quality is it not?

So lets say you build all the facilities in Texas is it economic to ship it north east again to where the bulk of it would be consumed rather than refine in Alberta or easter Canadian refiners then ship south ( Eastern refiners here were built to deal with nastey Alberta conventional crude )?

I have this feeling its easier to ship crude out of Texas by ship to say South American or eroupean refiners where its worth more than keeping it land locked in North America where oil is trading less than it would in other markets.

I have no issue realy with shipping oil to the USA or refined products but if this pipeline is just to get the oil out to other countries outside of NAFTA what's the point?

This doesn't make a lot of sence to me......

 

[Oldschool]

No replies.

I did more research:

I have concluded west texas crude is cheaper than say North sea brent because there is so much Canadian Syncrude glutting up the markets.

Solution to get ride of this glut and get North American fuel prices up is this pipeline...

But still waiting on you Texans to confirm this.

Also there is a special economic zone in this part of Texas at the end of the propsed pipeline that makes exports tax free so it a win fall for the oil companies ( Is this part true? ).

Wish I could run a scam like this.....

http://www.bloomberg.com/news/2011-...it-boosted-by-cheap-west-texas-crude-oil.html