Is Canada really planning to ship crude oil from Ft. MacMurray to Europe by tanker?
That seems like a needless risk and a needless expense, since Arab and
Russian oil is much closer to Europe, and can move overland ; Can't our
oil traders just make a deal to substitute the same amount of Arab oil
coming to North America for the Ft.Mac oil we plan to send to
is the quote from Dec 11th 2008:" Enbridge now plans to send oil sands crude to Sarnia,
Ont., along existing pipelines, before reversing pipeline flows between
Portland, Maine; Montreal; and Sarnia. Tankers would then carry the
crude from Portland to Europe, and Enbridge is aiming to transport
200,000 barrels a day from 2010. "
Maybe it has something to do with trade agreements, or tax and royalty
deals, but it simply cannot be efficient. Tankers are better than they
used to be but they could break up in a bad storm and spill their load
into the ocean.
I think there is also some equally silly deal with Mexican oil coming to Canada [by tanker to Sarnia],
as part of trade deals to prop up the Mexican currency. Meanwhile, we
send tons and tons of oil to the USA from Sarnia, so why not just send
that Mexican oil to the USA, and save the shipping costs of the extra
3000 miles by tanker? Maybe it is different type of oil or something?
Anyone know? It all seems so insane and risky.
----------------Speculation or Supply?
2] Remember last summer  everyone was arguing about
why the price of oil was so high, at $150/bbl.? Now that it has dropped
to under $50/bbl it seems that the Saudi Oil Minister was correct in
saying it was all about speculators driving the price, and NOT supply
shortages, as Pres Bush and others were saying. The Saudi Oil Minister
said that "we could increase production but we would have nobody to
sell it to", and that seems correct now.
Demand has dropped due to the financial problems, but not by 300% to send the price from $150 to $50.
didn't that high price of oil contribute to the financial mess we are
in now? If we don't learn from our mistakes we are going to
repeat them ; I wish the media would clarify some of these things.