This topic contains 3 replies, has 3 voices, and was last updated by Anonymous 9 years ago.
February 8, 2012 at 11:13 am #1950
The U.S. is the closest it has been in almost 20 years to achieving energy self-sufficiency, a goal the nation has been pursuing since the 1973 Arab oil embargo triggered a recession and led to lines at gasoline stations.
Domestic oil output is the highest in eight years. The U.S. is producing so much natural gas that, where the government warned four years ago of a critical need to boost imports, it now may approve an export terminal. Methanex Corp., the worlds biggest methanol maker, said it will dismantle a factory in Chile and reassemble it in Louisiana to take advantage of low natural gas prices. And higher mileage standards and federally mandated ethanol use, along with slow economic growth, have curbed demand.
The result: The U.S. has reversed a two-decade-long decline in energy independence, increasing the proportion of demand met from domestic sources over the last six years to an estimated 81 percent through the first 10 months of 2011, according to data compiled by Bloomberg from the U.S. Department of Energy. That would be the highest level since 1992.
Follow this Bloomberg link http:/bloom.bg/wxzzIZ for more…
Cutting Trade Deficit
Arab Oil Embargo
Mitchell the Pioneer
Hunting for Oil
North Dakota Booming
1.6 Million Jobs
Lot of Traffic
First Since 2001
No ‘Silver Bullet’
Cooling on Wind
February 9, 2012 at 12:04 pm #4716
See post under China loses WTO appeal – posted article “Made in USA” – US Mkt Shines Brighter as Co return from China.
Should have posted it here but had string going under original article about China finally being held to WTO rules other countries have to in order be member.
February 10, 2012 at 11:43 am #4715
Independent refiners appear in the driver’s seat in the US as integrated oil companies increasingly shed refining assets.
Independent refiners are destined to be in the driver’s seat of the US refining industry as integrated oil companies increasingly shed refining assets, according to analysts at Deloitte.
In a report released Wednesday, the consultancy said by the end of 2013, over 70% of domestic refining capacity may be controlled by independent refiners, a radical shift from 1990, when most of the refining capacity in the US was in the hands of integrated oil companies.
That likely means a reduction in the cyclical profit margin swings normally seen by refiners, as independent companies are less likely to be able to weather downturns and therefore strive for more efficient and stable operations, Deloitte consultant Roger Ihne said. Remaining article at http://bit.ly/wIwHE3
By ANGEL GONZALEZ
Independents nab control of US refining industry
02.08.2012 | HP News Services
February 10, 2012 at 5:48 pm #4714
This article is typical of Oil Consultant firms pitching studies to Oil Co Executives and putting out what they the herd has as understanding. Roger Inhe is touted as having 32 years in industry but my guess most is as Deloitte consultant and few years with one Major’s in Oil & Gas …… doesnt say what position he played but from gist …… it couldnt be downstream position (or if it was as is case today it was as Upstreamer put in position over Downstream operations).
I find nothing creditable in this article or its author – like lot others trying justify upstream push hive off downstream assets (as usual just before they become more profitable) and pitch a multi-client study on whose first on list for closure & how to avoid it …… only dont go to this company or consultant because he doesnt really understand downstream refining economics.
The statements of 70% shift to independents rely on idea that because Integrated Majors (COP, MAP, BP ect) separate Downstream segments that become “Pusedo-Independents” where Upstream segments trying sell crude arent going force downsteam segment to take thier crude when market turns against them or that whole company is going set itself up for lot more taxes because they cannot take profits back to lay against crude depletion tax allowances …… doesnt fly.
Additionally that is why “Downstream” margins are smalll – either they go taxes as in case Valero (that has no upsteam crude segments & no long term crude source contracts) or they have transfer price on crude that lets Upstream offset some margin/earnings against taxes/depeltion allowances. After period time all Integrated companies Upstream segments come to believe they make all profits & need get rid troublesome downstream assets …….. and they get killed in market because they dont have firm base taking crude at top market prices in down cycles.
Contrary to what Inhe is trying sell the US is rapidly becoming Crude long due to both incoming P/L Canadian crude & development of its own huge Gas & Crude reserves despite fierce decades long roadblocks by Environmentalist. There are at least 3 sites of 500 Billion Barrel reserves (with 15-20% min recovery) like Bakken in Wyoming & Heavy crude in both Texas & California that will push back on fundamentals of crude price. Additionally the legal actions to take out speculators in Wallstreet playing crude commodities as well as Cushing glut induced paper losses are going become push against shortages and future price escalation. Not to mention that when US shuts off gasoline imports – rapid reduction in foreign export refineries demand for crude & the loss of thier product export demand will make critical regional domestic impacts to East Coast & West Coast closures.
You must be logged in to reply to this topic.