This is a bit technical, but an interesting insight into the oil business.
http://www.reuters.com/article/2011/09/ ... LL20110907
PeakOil is You
The Challenges of Refining Crude Oil
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The Challenges of Refining Crude Oil
by peeker01 » Wed 07 Sep 2011, 22:09:31
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Re: The Challenges of Refining Crude Oil
by peeker01 » Thu 08 Sep 2011, 12:45:03
What has become of the oil discussion on this site? Many interesting issues in this article. Severe
drop in gasoline consumption one major issue, along with Sun's apparent unwillingness to upgrade
the refinery equipment. Also, diesel and jet fuel at all-time inventory highs.
drop in gasoline consumption one major issue, along with Sun's apparent unwillingness to upgrade
the refinery equipment. Also, diesel and jet fuel at all-time inventory highs.
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Re: The Challenges of Refining Crude Oil
by Pops » Thu 08 Sep 2011, 14:22:14
The refinery can only crack light, sweet crude - you know, the kind in short supply and prohibitively expensive because it's -
wait for it...
That's Right...
Peaked!
If the owner thought demand was going to come roaring back with the (soon to be, any day now, (OF2 is sure), just one more ISM report away) Expanding Economy and cheap, easy conventional oil was just a Clampett-shot away, wouldn't they run the plant at idle till Libya came back online and cheap/easy oil prices dropped back to $20/bbl?
My guess is they aren't delusional enough to spend their time pretending that is gonna happen for whatever unfortunate (and actually kinda sad) reason. In fact they've known it's a lost cause for a while because they've written the plant off already to the tune of $2.2B along with 2 other similar operations.
It could be that no one posted because they are embarrassed for you, as an erstwhile debunker, to post an article making such an obvious case for PO.
wait for it...
That's Right...
Peaked!
If the owner thought demand was going to come roaring back with the (soon to be, any day now, (OF2 is sure), just one more ISM report away) Expanding Economy and cheap, easy conventional oil was just a Clampett-shot away, wouldn't they run the plant at idle till Libya came back online and cheap/easy oil prices dropped back to $20/bbl?
My guess is they aren't delusional enough to spend their time pretending that is gonna happen for whatever unfortunate (and actually kinda sad) reason. In fact they've known it's a lost cause for a while because they've written the plant off already to the tune of $2.2B along with 2 other similar operations.
It could be that no one posted because they are embarrassed for you, as an erstwhile debunker, to post an article making such an obvious case for PO.
The legitimate object of government, is to do for a community of people, whatever they need to have done, but can not do, at all, or can not, so well do, for themselves -- in their separate, and individual capacities.
-- Abraham Lincoln, Fragment on Government (July 1, 1854)
-- Abraham Lincoln, Fragment on Government (July 1, 1854)
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Re: The Challenges of Refining Crude Oil
by peeker01 » Thu 08 Sep 2011, 14:32:00
Pops, don't feel sorry for me. I'm discussing peak oil. If the shuttering of this refinery and others
is the result of peak oil, then so be it. However, I see much indication there is a demand issue
here too.
Since we haven't built a refinery in 35 years, long before you ever gave a thought to peak oil,
demand is most certainly being met and now exceeded. Looks like all that conservation rhetoric
is finally paying off. And if prices double again, they will be pouring gasoline on the ground.
is the result of peak oil, then so be it. However, I see much indication there is a demand issue
here too.
Since we haven't built a refinery in 35 years, long before you ever gave a thought to peak oil,
demand is most certainly being met and now exceeded. Looks like all that conservation rhetoric
is finally paying off. And if prices double again, they will be pouring gasoline on the ground.
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Re: The Challenges of Refining Crude Oil
by Pops » Thu 08 Sep 2011, 14:42:47
peeker01 wrote:Since we haven't built a refinery in 35 years,
We haven't built a "new" refinery in 35 years but we have expanded the capacity of refineries along the coasts. We did that because our extraction peaked and we began importing oil.
Looks like all that conservation rhetoric
is finally paying off.
Fewer good jobs and scarcity driven crude oil price increases have killed demand...
Does it matter one whit that I type this?
The legitimate object of government, is to do for a community of people, whatever they need to have done, but can not do, at all, or can not, so well do, for themselves -- in their separate, and individual capacities.
-- Abraham Lincoln, Fragment on Government (July 1, 1854)
-- Abraham Lincoln, Fragment on Government (July 1, 1854)
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Re: The Challenges of Refining Crude Oil
by peeker01 » Thu 08 Sep 2011, 14:56:29
No it doesn't, if it's wrong, incomplete, or over-simplified.
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Re: The Challenges of Refining Crude Oil
by peeker01 » Thu 08 Sep 2011, 15:22:40
Cogent as always Peet.
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