This highlights a critical part of the oil markets: Not all oil is the same. There's so many different types of oil and they have different uses. The US has an abundance of light oil, which is particularly good for making lighter refined products - gasoline, for example.
Heavy oil has more of the long-chain molecules and is better for the 'bottom of the barrel' products such as heavy fuel for ships, petrochemicals, asphalt etc. The heavy oil can also be 'cracked' (broken down) to lighter oil products too.
I has a lot do with refineries too. Lighter oil needs less-complex refineries, in general. More complex refineries can handle heavier oil. So a lot depends on the refinery and the feedstock it needs.
Add it that heavy oil can be cheaper to produce, but harder to refine, it makes sense that complex refineries tend to favor heavier oil. They can make a wider range of products and fully use their complex refineries.
Most of Ecuador's oil is heavy or medium heavy. (API 19-24). Since the US doesn't produce much heavy oil, we export the excess lighter oil and in exchange, import heavy oil.
Ironically, the US could have imported more of its heavy like- oil from Canada Via the Keystone pipeline. The pipeline was designed to bring heavy dilutant (or very similar to heavy oil) down from Canada but President Biden blocked it to the cheers of the green movement.
However, we still need that type of oil... so where do we get it? The Amazon Rain forest... instead of Canada.
Thank you for the educational and illuminating response!
More ultra-irony: Gavin Newsome's disasterous war on oil industry in CA has included shutting down and curtailing CA oil production of the very same heavy crude from CA wells, the same type of oil we get from the Amazon.
CA refineries were configured to digest CA heavy oil, but now we go to the Amazon to get heavy crude, or as you point out, coulda been Canada, which is alot closer and pipeline ready.
Exactly! And unfortunately, no matter how much California heavy oil is left, there’s little chance to drill for it in the foreseeable future.
You’re correct, the irony is that we’re literally driving investments away from the US to countries with far laxer environmental regulations. If you care about the environment, preventing oil spills, and the rain forest, you’d want that drilling close to home.
Don’t let the liberal Californians get ahold of this post. They’re dumb enough to skew it as, “well, this is why we need more electric cars, so we can stop importing oil from the Amazon rainforests!” Yes, I live in California and I know people who think this way. It’s pathetic. Great reporting, Tuco!
Thanks for pointing out the best in people (or not) - mostly California - but really the rest of the world too, let's not forget them all. The hypocrisy of them all.
"He called on the international community to donate about $3.5 billion — roughly half of the revenue Ecuador estimated it would have earned from mining the oil under Yasuní. But the plan was abandoned six years later, after Ecuador raised less than 10 percent of the target figure." to use a quote from the article that got me most- $3.5 billion is nothing to an Elon Musk, a Bloomberg, a Bill Gates, a Klaus Schwab or any of the rest of the Sierra Club, Rebellion Extinction, to many to name.. etc., even Greta could have chipped in a few hundred thousand and never missed it Where were these benevolent people when it came to saving the rainforest from drilling - so where are they all - not sexy enough for them - not out in from of the camera enough for them... Makes you want to scream.
Nothing has changed in California, or Austin, or Denton (TX), or Goggle, or Microsoft, or Amazon (the company) when they say they are 100% green - what nonsense - unless they have a dedicated micro grid with 100% wind, solar or batteries they are pulling off the grid like everyone else - I guess lying is just so acceptable anything now goes!
Next they will be wanting to set up NAC's (natural asset corporations) and will be cashing in (investing) in all the natural assets available in the forest that don't belong to them. If the SEC gets their new ruling it's coming to a neighborhood near you soon! ... gurrrr.......
I am working on another semiconductor article - Intel has solar panels up in Chandler, AZ in the parking lot. They might supply 0.7 % of daily consumption.
If you were to look at a map of the United States you think that California is connected to the United States, however you would be mistaken. How most of it's history California has been an island because of it geography and even more of an island energy wise. Look at a pipeline map of the United States: https://www.api.org/oil-and-natural-gas/wells-to-consumer/transporting-oil-natural-gas/pipeline/where-are-the-pipelines, & you will notice the West coast and North East are devoid of them make acquiring oil, petroleum products, & natural gas from the interior of the country to expensive compare to importing. What is even more crazy is that California produces 463,000 barrels of oil a day, making the state the 7th largest producer in the United States. California consumes 1.8 million barrels a day. So there are force it import 75% of their oil from countries that are more prone to greater environmental harm than compare to their home country. This situation is the making of their own hand, they have no one else to blame and it shows at the pump with more expensive gas prices because of imported oil & petroleum products and taxes cause more environmental damages instead of drilling where the oil complex and infrastructure and regulations are the top of charts. Yet they can solve it with oil reserves at 1.8 billion.
Wow great information as the Democrats cry green, and money, there destroying countries! In America 🇺🇸 the rules on mining oil is much more strict than in the precious eco systems in South America! Shut our oil off to pretend we are doing a great job in killing oil! What a scam.
Another great one, T.C. - love it!
Thanks for your support, restacks appreciated.
This highlights a critical part of the oil markets: Not all oil is the same. There's so many different types of oil and they have different uses. The US has an abundance of light oil, which is particularly good for making lighter refined products - gasoline, for example.
Heavy oil has more of the long-chain molecules and is better for the 'bottom of the barrel' products such as heavy fuel for ships, petrochemicals, asphalt etc. The heavy oil can also be 'cracked' (broken down) to lighter oil products too.
I has a lot do with refineries too. Lighter oil needs less-complex refineries, in general. More complex refineries can handle heavier oil. So a lot depends on the refinery and the feedstock it needs.
Add it that heavy oil can be cheaper to produce, but harder to refine, it makes sense that complex refineries tend to favor heavier oil. They can make a wider range of products and fully use their complex refineries.
Most of Ecuador's oil is heavy or medium heavy. (API 19-24). Since the US doesn't produce much heavy oil, we export the excess lighter oil and in exchange, import heavy oil.
Ironically, the US could have imported more of its heavy like- oil from Canada Via the Keystone pipeline. The pipeline was designed to bring heavy dilutant (or very similar to heavy oil) down from Canada but President Biden blocked it to the cheers of the green movement.
However, we still need that type of oil... so where do we get it? The Amazon Rain forest... instead of Canada.
Thank you for the educational and illuminating response!
More ultra-irony: Gavin Newsome's disasterous war on oil industry in CA has included shutting down and curtailing CA oil production of the very same heavy crude from CA wells, the same type of oil we get from the Amazon.
CA refineries were configured to digest CA heavy oil, but now we go to the Amazon to get heavy crude, or as you point out, coulda been Canada, which is alot closer and pipeline ready.
Exactly! And unfortunately, no matter how much California heavy oil is left, there’s little chance to drill for it in the foreseeable future.
You’re correct, the irony is that we’re literally driving investments away from the US to countries with far laxer environmental regulations. If you care about the environment, preventing oil spills, and the rain forest, you’d want that drilling close to home.
Don’t let the liberal Californians get ahold of this post. They’re dumb enough to skew it as, “well, this is why we need more electric cars, so we can stop importing oil from the Amazon rainforests!” Yes, I live in California and I know people who think this way. It’s pathetic. Great reporting, Tuco!
Thank you!
It's a target rich environment
Very interesting. And as stated below, the work around for this issue would have been keeping the Keystone pipeline active.
And good to note all the endless negative items on the narcissistic, socialist tyrant, G Newsom.
Thanks for pointing out the best in people (or not) - mostly California - but really the rest of the world too, let's not forget them all. The hypocrisy of them all.
"He called on the international community to donate about $3.5 billion — roughly half of the revenue Ecuador estimated it would have earned from mining the oil under Yasuní. But the plan was abandoned six years later, after Ecuador raised less than 10 percent of the target figure." to use a quote from the article that got me most- $3.5 billion is nothing to an Elon Musk, a Bloomberg, a Bill Gates, a Klaus Schwab or any of the rest of the Sierra Club, Rebellion Extinction, to many to name.. etc., even Greta could have chipped in a few hundred thousand and never missed it Where were these benevolent people when it came to saving the rainforest from drilling - so where are they all - not sexy enough for them - not out in from of the camera enough for them... Makes you want to scream.
Nothing has changed in California, or Austin, or Denton (TX), or Goggle, or Microsoft, or Amazon (the company) when they say they are 100% green - what nonsense - unless they have a dedicated micro grid with 100% wind, solar or batteries they are pulling off the grid like everyone else - I guess lying is just so acceptable anything now goes!
Next they will be wanting to set up NAC's (natural asset corporations) and will be cashing in (investing) in all the natural assets available in the forest that don't belong to them. If the SEC gets their new ruling it's coming to a neighborhood near you soon! ... gurrrr.......
Thank for the article once again.
Thank you for the great comment.
I am working on another semiconductor article - Intel has solar panels up in Chandler, AZ in the parking lot. They might supply 0.7 % of daily consumption.
All for looks!
Looks and the green credit mostly... can't wait to read it.
If you were to look at a map of the United States you think that California is connected to the United States, however you would be mistaken. How most of it's history California has been an island because of it geography and even more of an island energy wise. Look at a pipeline map of the United States: https://www.api.org/oil-and-natural-gas/wells-to-consumer/transporting-oil-natural-gas/pipeline/where-are-the-pipelines, & you will notice the West coast and North East are devoid of them make acquiring oil, petroleum products, & natural gas from the interior of the country to expensive compare to importing. What is even more crazy is that California produces 463,000 barrels of oil a day, making the state the 7th largest producer in the United States. California consumes 1.8 million barrels a day. So there are force it import 75% of their oil from countries that are more prone to greater environmental harm than compare to their home country. This situation is the making of their own hand, they have no one else to blame and it shows at the pump with more expensive gas prices because of imported oil & petroleum products and taxes cause more environmental damages instead of drilling where the oil complex and infrastructure and regulations are the top of charts. Yet they can solve it with oil reserves at 1.8 billion.
https://www.latimes.com/projects/california-oil-well-drilling-idle-cleanup/map/
Wow great information as the Democrats cry green, and money, there destroying countries! In America 🇺🇸 the rules on mining oil is much more strict than in the precious eco systems in South America! Shut our oil off to pretend we are doing a great job in killing oil! What a scam.