Skip to comments.'OPEC obsolete' if Keystone pipeline OK'd: Pickens
Posted on 10/10/2013 5:53:26 AM PDT by thackney
The proposed Keystone XL oil pipeline from Canada to the U.S. would make "OPEC obsolete," billionaire energy entrepreneur T. Boone Pickens told CNBC on Wednesday.
"Canadians say they have 250 billion barrels [of oil]. That's exactly what the Saudis claim they have," he said in a "Squawk Box" interview. "You're sitting there with the same amount of oil available to the United States from Canada as Saudi Arabia."
"But when you move the oil through the Strait of Hormuz everyday, it's 17 million barrels," Pickens said. "The Navy is shepherding a cartel daily through the Strait of Hormuz. And then to China and Europe, and we get 10 percent of it."
(Excerpt) Read more at cnbc.com ...
It is about the oil but it’s not ALL about the oil. OPEC needs to be kept closer, not pushed away IMO.
1. Announce the green light for Keystone.
2. Open up offshore drilling on all 3 oceans.
3. End "boutique blend" gasoline grades.
4. Start drilling on federal lands.
If I can think of this, don't you think somebody in the Energy Department knows this? Doesn't Obama know this? If he knows it, why doesn't he implement it?
The evidence shows it is NOT Ow-ebama's goal to improve America's world standing or economy.
Tee Bone is the Dick Morris of the energy business so although I’d like to believe this...
Oh BTW Tee Bone how’s those windmill thingies workin’ out?
There’s a reason why gas is not $2 a gallon. Ask Americans if this would change it. Most don’t believe it will.
Energy prices in the US could be much lower today. To wit:
“1. Announce the green light for Keystone.
2. Open up offshore drilling on all 3 oceans.
3. End “boutique blend” gasoline grades.
4. Start drilling on federal lands.
If I can think of this, don’t you think somebody in the Energy Department knows this? Doesn’t Obama know this? If he knows it, why doesn’t he implement it?”
It’s called CONTROL.
Most Americans who voted last year voted for BHO. Did they get what they deserved?
The benefits are obvious, patently obvious and will benefit the entire economy. Why block it?
If we produced anywhere near our capability it would put the mideast back in the stoneage where they belong.
I once thought that way until I met Boone and sat with him talking about this.
His philosophy is simple: get away from imported energy as fast as possible because the Middle East is collapsing rapidly. The Saudi Royal family will collapse soon and that will plunge the entire ME into abject turmoil.
If islamists take over, they may shut off energy to the West. They do not care if their people starve without oil revenue....their ideology comes first.
Boone did the windmill stuff to silence the greenies who hate him for making his fortune in oil. He is a supporter, but only if it is economical (which he said is not possible)
After that, I didn't judge him as harshly.
Jeez, Boone, shut up. If Obama hears you, the pipeline will NEVER get approved. Environment is one thing, but acceding to the Saudi King, protector of Islam, is quite another.
But the Saudi’s have 0bama (and likely previous admins.) by the shorts. They freak out over the Keystone pipeline.
DRILL BABY DRILL!!!!
What’s really at stake? A questionable “ally”? Use of Saudi air bases, etc.?
What actions does that sentiment imply? Do you think we need to buy more oil from OPEC?
The man is intelligent and a patriot. But after decades of experience, every time he speaks, I have this feeling I should check my wallet and grip it tightly.
“End “boutique blend” gasoline grades.”
What are “boutique blends” and why would their elimination lower energy prices?
What about rising electricity prices because of government mandates? Some rates have doubled in ten years the root cause being government green energy and EPA mandates.
I have come to believe that Obama had strong advice that blocking the Gulf deep wells, the Keystone pipe line and other such endeavors would endear him to his base
It turns out that the strong reserves growth in North Dakota, Texas and elsewhere have blunted much of the criticism.
He has invested many millions into his campaign for energy independence already. A few million on windmills is worth it, in his mind.
This way he can say he is for "all energy sources" to make us energy independent.
-——How many millions did he lose on windmills? Doesn’t he know that the greenies still hate him because he is still rich?——
We don’t know he actually lost any thing on wind turbines. He collected subsidies and the vast seemingly unending arrays across west Texas are turning. Given who knows what tax incentives to shelter other profits, he might not lose anything.
His other venture with Pilot Flying J to install natural gas filling stations for interstate truckers will be what he is remembered for.
The multitude of different gasoline requirements. Multiply those shown here by 2 for winter blend, then add in the varying octane requirements at different state.
Because Obama is owned by the Saudis. See my FR homepage for details.
google “Nixon and the petrodollar” and you may have an epiphany.
Because many states (like CA) have their own unique blend requirements, you can't just ship Arizona gas to California gas stations. The restrictions make gas more expensive.
I take it you don’t have a intended action, just a catch phrase.
What I have is an understanding of why things are the way they are and what would happen if they changed. Google it. Read a little bit. or don’t.
I wonder if Aviation 100ll is a boutique blend, I’ve seen it referred to that way, racing gasoline too.
I have read on the topic for years. Since my career and providing for my family has been dependent on the petro-industry, I’m more than a little interested.
You posted it on the thread. What actual actions do you thinks would be good to take?
Are you asking if Aviation Gasoline requirements change from location to location?
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Don't take away my sport ute's fave blend: the ethanol free grade at the Conoco.
No, I’ve seen aviation and racing gasoline referred to as a “boutique” blends. If we “get rid of” boutique blends would it include aviation and racing gasoline?
I do not see that happening in any case. Aviation Gasoline has stricter requirements and insurance liabilities associated with it not seen in automotive requirements.
he mogas debate
Racing gasoline is done for people willing to pay for performance. Money drives its existence, not federal requirements.
I think that if we were to stop being a customer of OPEC, we would have less influence over them and other nations would jump in to provide that missing influence, nations hostile to our interests. Before you know it,OPEC will be accepting rubles or yuan or euros for oil and then, the next thing you know, demand for the dollar will plummet which will result in a fiscal crisis unlike anything we have ever seen. Our way of life has evolved around the petrodollar arrangement. I’m pretty sure it’s in our interest to maintain that arrangement at any cost. all just my opinion of course.
So you believe it is in our best interest to limit domestic oil production and set a minimum OPEC purchase? I am still trying to convert your concern into an action. If you don't define an action, nothing happens but talk.
I think we have to consider that the petrodollar arrangement has been very very good for America and that it would be very very bad for America if it were to suddenly end. We also need to consider that as our welfare/ warfare state grows around this whole arrangement, the severity of the consequences of it ending grow with it. I suspect that there are no lengths to which we will not go to to maintain the status quo- wars, revolutions, assassinations, etc. With all this in mind, I think it’s pretty obvious that we can’t allow anything to come between us and the Saudis so, yes, we need to keep them close and the best way to do that is to keep buying their oil, protecting their interests, and respectfully bowing to their kings.
So on the first step, do you limit domestic production?
The climbs in oil production in the US by technical development are not going to stop in the US. It just started here. Just like nearly always.
You are overlooking the fact we would replace unstable opec oil with our own. We would need to produce enough to cover domestic use and have enough surplus to export. All of your dollar fears could be triggered over night by a stiff political wind in Saudi anyway.
The U.S. should develop its own resources. That brings all the value added of exploration and production back to the U.S., at whatever cost per barrel, up to $100. In economist terminology, it helps the balance of payments, but in simple terms it means jobs and prosperity for the U.S.: something that should have been done long ago.
Because of oil's energy density and ease of use, it will be the primary energy source for transportation, worldwide, for decades to come. Let's not get sidetracked by the renewable craze.
As for Canada, they can ship their oil here by rail or build/reverse a pipeline to their underutilized eastern refineries. Losing Keystone won't hurt them much, or us at all.
And that is why the Saudis have ordered bathhouse barry to refuse to allow it's construction.
Picens is a scam artist. at least he appears as such on msnbc.
How does an increase in US oil supply not affect the global price of oil? Increases or decreases in OPEC supply decrease or increase the global price. The US is significantly engaged in the global oil market, we import about as much as we produce. Increasing our domestic production decreases our draw on the global supply.
Future Asian demand and Russian supply are the big factors.
The US already produces more oil as Russia.
Expanded North American reserves would have a military value in the event of a world war that denies the U.S. access to oil beyond its shores
Reserves are not production rates. Oil in the ground does not match oil flowing to the refinery. See Venezuela for a great example.
>>It is about the oil but its not ALL about the oil. OPEC needs to be kept closer, not pushed away IMO.<<
Why, so more muslims will infiltrate the USA?
BTW, google can be useful.
Cheap energy will make a country wealthy and free. Wealth and freedom are anathama to this regime.
You have a valid point that proven reserves of oil in bitumen form are not militarily significant, unless they are being produced. It's not just a matter of drilling some development wells. I think that military concerns are based on a remote possibility.
I do not believe that is true. For 2013 Russia production growth is expected to rather small compared to the US. In 2014 they are expected to fall in production rate while the US will have significant production growth.
As such, increases in U.S. production will not have a significant impact on world oil prices.
The US is having the largest production increases in the world.
Decisions on big-cap items like pipelines need to be made based on a best estimate of demand a decade or so out, not next year. For example, Canadian oil sands production is forecast to grow from 1.8 million barrels per day in 2012 to 5.2 million barrels per day in 2030: http://www.capp.ca/getdoc.aspx?DocId=227308&DT=NTV Long-term, Canada will do better finding its own refinery solution.