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To: Nachum

In the spirit of compromise, might I suggest a refinery be built closer to the oil? After all, it’s the gasoline that’s retail distributed.


12 posted on 11/10/2011 2:29:09 PM PST by blackdog (The mystery of government is not how Washington works but how to make it stop)
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To: blackdog
“In the spirit of compromise, might I suggest a refinery be built closer to the oil? After all, it’s the gasoline that’s retail distributed.”

Certainly possible from a technical point of view. Hmmmm... A 700K barrel per day refinery should run something towards $10 billion or so I think, or more? Then there would be pipelines (probably 4 or 5) that would be needed to transport the bulk amount of refined hydrocarbons, Coincidentally, towards 50% of the US refining and commodity organic chemicals capacity just happens to be located in an arc from New Orleans to Corpus Cristi, TX. It would still be necessary to network through the pipeline intersections in Cushing, OK so the routing would be the same as the crude oil. Also, new rail routes would be needed in both Canada and the US. I would think that the unions would be raising hell about this. Yeah yeah, dumb thought.

Keep in mind that a refinery produces lots more end products than gasoline's. For example, diesel, jet fuels, bunker fuel, olefins and aromatics for plastics, lubricant bases, coke for steel, asphalt oil, etc.

36 posted on 11/10/2011 4:46:27 PM PST by Hootowl99
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To: blackdog
Not just gasoline, but diesel, chemical plant feedstocks, and heavy ends. If you have the plants to use the non-fuel products close by (like many refinery complex areas do), it makes more sense to ship the crude than build a new complex.

Plans exist and are progressing for a 'topping facility' in North Dakota to distill diesel from Bakken Crude and sent the heavier fraction one way and the napthalenes another as precursors/feedstocks, while the diesel is used locally (Agriculture and the oil industry, esp. trucking will use a lot). While this will cut down on the shipped volumes, a pipeline would have been the best way to move the feedstocks.

45 posted on 11/11/2011 1:01:43 PM PST by Smokin' Joe (How often God must weep at humans' folly. Stand fast. God knows what He is doing)
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