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What's your crazy gas price?

Discussion in 'The Atrium' started by Oshkoshpackfan, Feb 22, 2013.

  1. PFanCan

    PFanCan That's MISTER Cheesehead, to you.

    Dec 18, 2009
    PFNChiTown: Yes, currently all of the production from the tar sands either remain local to western Canada or get piped south across the border to our Midwestern states-- a good portion of it ends up in Illinios refineries. I believe that all this occurred throughout the earlier 2000s. It completely displaced imports from OPEC countries as it was a cheaper option. The Midwestern region now only relies on Canada and the US for it's energy needs.

    However, as production in western Canada increases, where will this excess go? The Midwest does not need any more. This is where the Keystone XL pipeline (and/or the western Gateway come in play). Heck, the Canadians are even considering building a long pipeline to their Eastern coast as well.

    IF we build the XL, Canadian tar sand production can then reach our Gulf-coast based refineries (the region called "PADD III") which services Texas and all the surrounding states. Currently, this regions oil needs come mostly from a variety of OPEC and other foreign countries (Venezuela, Saudi, Iraq, Kuwait, some African countries, etc.). If we can OFFER into this mix fuel from Canada, it gives us more options.

    However, I never said that the USA would be the "exclusive" customer!! TransCanada and the Canadian oil producers need to get their oil to the world market. Whether they go East, West, or South-- it does not matter, they will do it one way or the other.

    IMO, I'd rather they go South allowing the US to participate in the opportunity to buy it- hopefully displacing some of the oil currently coming in from hostile regions. Additionally, the jobs created to build the pipeline, to maintain it, as well as the refinery operations (which employ 10,000s of people) will be in the US, not Canada. We also get to tax the pipeline.

    I've seen an argument that goes as follows: IF we build the XL and Canada finally gets their tar sands to the world market, we lose our current advantage of getting really cheap oil from them for our MidWest region. This is true. As soon as the world starts to bid on tar sands (whether it is from our refineries, or the Canadian refineries in Vancouver or elsewhere), this discount likely disappears. I believe this is true.

    However, the fault in the concept that "If we don't build the XL, our prices stay low" is that Canada will simply build a pipeline to the west or east and we lose out anyhow.

    I hope I am making sense.
    • Informative Informative x 2
  2. Pat4DaPack

    Pat4DaPack Cheesehead

    Aug 11, 2009
    The last time I was at home, in the Suburbs of Chicago, gas was pushing about $4 a gallon.
  3. Poppa San

    Poppa San Go Pack Go Staff Member Moderator

    Aug 29, 2010
    Build the dang thing. A major customer of where I work would supply a lot of the components for the pipeline especially the valving. My checkbook depends on the gas/oil industry, construction market, and the trucking components industries. All three would benefit.

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