On Venezuelan "tar" oil.

when I was in the business tar sands breakeven price was about $90 a barrel.
That's' a reasonable estimate for some period of time.
Don't waste your time trying to impress me. I won't call you on it until you start lying.
 
That's' a reasonable estimate for some period of time.
Don't waste your time trying to impress me. I won't call you on it until you start lying.
This is the internet. I don't believe anyone on the internet actually exists unless I have met them, so impressing them is not my concern.
 
Not only is Venezuelan oil thick and gooey, but it also arrives polluted, giving refineries fits. Renewed pumping is also causing massive environmental problems in Venezuela. Thanks Joe.
"Thick and gooey" is better described as "high viscosity". Interestingly, Venezuela extra-heavy has a lower than usual viscosity for its API gravity.

Refineries don't describe oil as "giving us fits", they have an assay of oils that any given refinery is equipped to handle, and by blending one il (say, light oil) with the higher viscosiy, can create the expected density and consistency their particular setup can handle. The US GOM has refineries exactly equipped to handle these types of oils, as they were built to not just refine Venezuelan type crudes, but also the heavy and extra heavy from New Mexico. The US GOM has more of this type of refining capacity than nearly anyone else in the world, if memory serves.

And yes, refineries are also equipped to handle impurities within the assays they were designed for. They charge the owners of this oil more for this more complex refining of course, usually requiring the heavies and extra-heavies to sell at a discount to the lighter grades.
 
Not only is Venezuelan oil thick and gooey, but it also arrives polluted, giving refineries fits. Renewed pumping is also causing massive environmental problems in Venezuela. Thanks Joe.

,

you'd bitch if they didn't pump....you bitch if they do, yer such a bitch.
 
"Thick and gooey" is better described as "high viscosity". Interestingly, Venezuela extra-heavy has a lower than usual viscosity for its API gravity.

Refineries don't describe oil as "giving us fits", they have an assay of oils that any given refinery is equipped to handle, and by blending one il (say, light oil) with the higher viscosiy, can create the expected density and consistency their particular setup can handle. The US GOM has refineries exactly equipped to handle these types of oils, as they were built to not just refine Venezuelan type crudes, but also the heavy and extra heavy from New Mexico. The US GOM has more of this type of refining capacity than nearly anyone else in the world, if memory serves.

And yes, refineries are also equipped to handle impurities within the assays they were designed for. They charge the owners of this oil more for this more complex refining of course, usually requiring the heavies and extra-heavies to sell at a discount to the lighter grades.
Sour crude is what most US refineries refine.
 
Venezuelan oil is not tar oil. The tar sands are in Canada.
Venezuelan oil is heavy and sour. It requires special cokers and crackers to refine it, but thats not an issue. There are multiple refineries with that capacity now.

Now tar sands suck balls. Its closer to mining than drilling.
Some of the Venezuelan oil has high viscosities that certainly might make them seem like tar. And yes, the tar sands of the Athabasca, Cold Lake and Peace River (tar sands sometimes referred to as bitumen...pronounced "bitch-a-men") do require refining over and beyond the usual light and medium grade sweet crudes. And approximately 1/3 of this type of oil is effectively mined at the surface, I believe the other 2/3's is produced through the SAGD process and shallow wells.
 
The damage to the Venezuelan environment.
Article on the cesspool that O&G development has done to Lake Maraciabo. I wonder if the Venezuelans cared at in the pursuit of revenue to subsidize whatever nonsense Chavez was up when he was alive?
Article.
 
Trust me, I know what I'm talking about. Tar sands oil is mined in open pits and is very environment unfriendly.

It's the second to last bad choice before fracking, which is the most damaging to the environment.
Tar sands in Canada isn't all mined. But no one will claim SAGD or surface mining and steaming at the surface is terrifically clean. Hydraulic fracturing isn't that big of a deal pollution wise compared to those two.
 
Sour crude is what most US refineries refine.
Refineries can refine more than one type of oil assay, depending on the equipment they were built with, or decide to upgrade with. However, they make a bigger margin on the oils that require more "work" to turn into products. They require more input beyond just the oil itself as well...natural gas as one example, or even lighter oils to mix with the heavier grades to meet the API criteria they want for an input to their particular refining capabilities.

The US cranks out more light sweet crude from shale source rocks than it does ANYTHING else....we can refine that just fine even down around the Gulf Coast. But Gulf Coast refineries were built with Mexico and Venezuela in mind, and it is also where Canada would like to send their bitumen Western Canadian Select as well...I think they need the better refining capabilities just like Mexico and Venezuela do...and that's where it mostly sits in the US.

The US has some 19-20 mmbbl/d refining capacity, but we produce only about 13 mmbl/d total. So we refine more than just US oils certainly.
 
Not only is Venezuelan oil thick and gooey, but it also arrives polluted, giving refineries fits. Renewed pumping is also causing massive environmental problems in Venezuela. Thanks Joe.

,

US refineries are set up for heavy, sour crude... always has been.
 

New Topics

Back
Top Bottom