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Originally Posted by Hook'em_Horns!  Don’t believe the lies that have been presented to the American people on our Domestic Quality of oil…  |
I don't need to listen to the propaganda of either side, I'm in the industry. You mistook the nature of my reply, I was in no way saying we are in an energy crisis. Was merely stating the prices will not drop as far as people are hoping they will. The days of $30/bbl oil are dead.
Do a little research on oil shale and see how much they think its going to cost to produce it. You think there was a reason they abandoned the oil shale fields of western Colorado and eastern Utah in the 80's? Thats right, it would have cost them money to extract the oil. Making it cost prohibitive. Now with the oil being as high as it is, they are talking about developping the shale fields again. That is because they are now cost effective.
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also, research the difference between sweet crude (arabic) and sour crude (rocky mountains). There is a several million dollar difference when it comes to processing facilities for the two types of crude. I'm still waiting to hear if the formation they found in North Dakota is sour or sweet. If its sweet, then we might be able to get cheaper oil. If its sour, prices wont' be dropping that much.
Research the Stretford Sulfur Extraction process and see if you can find out just how expensive and complex this system is. That used to be the standard, it will give you an idea just how much more it costs to produce oil here.
Another thing, look at the regulations put on refineries. One specific refinery I used to work on is right now in the middle of a multi-million dollar project just trying to get up to speed on the new low sulfur diesel fuel crap. Not to mention all the other regulations being placed on refineries. Do you think they do this for free just to provide us with fuel? There again, prices must go up to pay for the construction.