re: O&G Sector Guys/Baws/Dolls: Domestic Production. Do We HAVE To Import Right Now?

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Why wouldn't we be retrofitting existing refineries to handle our own oil rather than someone else's?

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Because it isn’t just a type of refining process for types of oil. The types of oil is determined by the factions within it. A given unit of light oil can be refined into more gasoline/kerosene than a given unit of heavy oil.

So in order to tailor operations to meet demand, you need to refine both. Otherwise you’ll generate a surplus of an item you can’t find enough customers for by processing enough oil to meet demand of a different item.



On a related note, all this talk about domestic vs foreign product is nothing more than ignorant political grandstanding.

Oil is a fungible commodity. It really doesn’t matter as far as day to day operations goes. It’s a nice boon to economic activity but it’s the act of drilling producting a product of global value, not the source/destination.

Rigs sell the product at global market prices into pipelines, and refineries buy it.


It’s not like the oil drilled in the Gulf is direct piped into the refineries in LA/TX.