"Peking" Oil, the Saudi's and China
China and Saudi Arabia signed several deals on Monday, including one on energy that probably includes a dedicated refinery in Saudi Arabia.
Chinese refineries find it difficult to handle Saudi Arabia's heavy crude. So Saudi Arabia is likely to find a larger market for its oil in China if it invests in processing plants.
Saudi Arabia supplied nearly 440,000 barrels per day (bpd) of oil to China in the first 11 months of last year, 17 percent of China's imports.
Last year, Saudi Arabia signed a $3.5 billion deal with Exxon Mobil and Sinopec, China's top refiner, to expand a refinery in southern China's Fujian province.
The Saudis are also in talks with Sinopec about investing in a plant in the northern city of Qingdao.
US crude oil imports continued to rise for the 5th straight week. The NIMBY's in this country want their SUV's, but don't want new refineries built.
Why aren't we making deals for dedicated refineries in Saudi Arabia or elsewhere? Thats an easy one, it would increase supply and cut the prices.
FYI, last week, I had several lengthy in person discussions with a few current and ex oil company gurus and geologists who wish to remain nameless.
The consensus was unanimous:
1. There is no crude oil supply shortage, nor will there EVER be one.It is readily available, self replenishing and in an inexhaustible supply.
2. Oil is a naturally occurring bioproduct. It is not the converted remains of ancient life after a few million years of decomposition.
3. The "peak oil" theory is an outright fraud, falsehood and industry contrivance to spook the herd and keep the price of oil artificially high through oil futures speculation and the "sisters" hedging their own bets on the oil exchanges.
4. The only issues are the cost of extraction & refining, and adequate refinery infrastructure for processing.
5. Both of these factors have been purposely and premeditatedly limited by OPEC and the "sisters" themselves in an effort to manipulate the supply and demand equation and bilk the public.
$130 Oil Justified? No Way
Oil Price Redux
OIL: Demand, Production and Speculation
Peak Oil - The Myth, The Legend, The Fraud
Spreading "Peak Oil" Crack
"Peking" Oil, the Saudis and China
Peak Oil? Not!
Peak Oil? Not! Part Deux
Peak Oil? Not! - Update
Peak Oil Redux Part I
Peak Oil Redux - Part II
Peak Oil Redux Part III
Peak Oil Redux Part IV
Peak Oil Redux Part V
Peak Oil Redux Part VI
Peak Oil Redux Part VII
Peak Oil Redux Part VIII
The Blame for $135 a Barrel Oil
Blame it on Markman's Myopia or The Day They Burned Ol' Dixie Down - A "Peak Oil" Commentary
Another Peak Oil Cufuffle Series
Chinese refineries find it difficult to handle Saudi Arabia's heavy crude. So Saudi Arabia is likely to find a larger market for its oil in China if it invests in processing plants.
Saudi Arabia supplied nearly 440,000 barrels per day (bpd) of oil to China in the first 11 months of last year, 17 percent of China's imports.
Last year, Saudi Arabia signed a $3.5 billion deal with Exxon Mobil and Sinopec, China's top refiner, to expand a refinery in southern China's Fujian province.
The Saudis are also in talks with Sinopec about investing in a plant in the northern city of Qingdao.
US crude oil imports continued to rise for the 5th straight week. The NIMBY's in this country want their SUV's, but don't want new refineries built.
Why aren't we making deals for dedicated refineries in Saudi Arabia or elsewhere? Thats an easy one, it would increase supply and cut the prices.
FYI, last week, I had several lengthy in person discussions with a few current and ex oil company gurus and geologists who wish to remain nameless.
The consensus was unanimous:
1. There is no crude oil supply shortage, nor will there EVER be one.It is readily available, self replenishing and in an inexhaustible supply.
2. Oil is a naturally occurring bioproduct. It is not the converted remains of ancient life after a few million years of decomposition.
3. The "peak oil" theory is an outright fraud, falsehood and industry contrivance to spook the herd and keep the price of oil artificially high through oil futures speculation and the "sisters" hedging their own bets on the oil exchanges.
4. The only issues are the cost of extraction & refining, and adequate refinery infrastructure for processing.
5. Both of these factors have been purposely and premeditatedly limited by OPEC and the "sisters" themselves in an effort to manipulate the supply and demand equation and bilk the public.
$130 Oil Justified? No Way
Oil Price Redux
OIL: Demand, Production and Speculation
Peak Oil - The Myth, The Legend, The Fraud
Spreading "Peak Oil" Crack
"Peking" Oil, the Saudis and China
Peak Oil? Not!
Peak Oil? Not! Part Deux
Peak Oil? Not! - Update
Peak Oil Redux Part I
Peak Oil Redux - Part II
Peak Oil Redux Part III
Peak Oil Redux Part IV
Peak Oil Redux Part V
Peak Oil Redux Part VI
Peak Oil Redux Part VII
Peak Oil Redux Part VIII
The Blame for $135 a Barrel Oil
Blame it on Markman's Myopia or The Day They Burned Ol' Dixie Down - A "Peak Oil" Commentary
Another Peak Oil Cufuffle Series
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