by TheDude » Wed 28 May 2008, 21:43:29
$this->bbcode_second_pass_quote('emeraldg40', 'W')here do I look for the answer to the older mans question? Seems I havnt an answer either. Why hasnt there been a new refinery? I guess some of us older people seem to remember the footage of US Presidents bowing to the Saudis way back when. All I have ever heard is this: The oil comes out of Saudi Arabia very clean and dosnt need so much refining. Is that true? So if it is then I can assume the oil under the Canadian TAR sands is very dirty? Has this always been about the refining and not the amount? The other rumours are that the price increase is just about speculators. Im a lucky American at this point because Ive had 5 years to get ready for this. Im not surprised by the price of gas, I expect it to rise even more. I would just like the truth. Is it about Peak, speculators or a combination of both?
Saudis have developed/are developing new projects, with heavier oil they didn't bother with in the past. These are by and large older discoveries they weren't interested due to its heaviness/sourness/impurities. Chances are this will be all they have to offer, as you'd imagine KSA has been pretty extensively explored.
Like lawnchair says we've expanded the refineries we have, it's an awful hassle to build them, owing to all the red tape involved. As Rapier explains in the linked article refineries are also busy adding cokers to deal with the heavier oil that's beginning to dominate the market. One thing you'll never hear mentioned on the radio is how the Light Sweet Crude oil has peaked:

Tar sands oil is medium quality, they expend a helluva lot of energy (=$$$$) extracting it though. We've had a few threads on the speculation factor recently.
$this->bbcode_second_pass_quote('JJ', 'M')y 24 year old just graduated with a double major, International Business, International Economics. They have been teaching him what I have been reading about here.
$this->bbcode_second_pass_quote('', 'A')n elderly retiree came into the grocery where I work yesterday with his wife. He was LIVID, cussing Bush for getting us into this position. My co-worker, who is on the fence, said "this isn't going to be pretty".