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I see what you're saying but those 2500 barrels of crude could still be used to add to the shale supply of diesel, heavy oil etc. Basically, shale adds to our total supply of non-gasoline petroleum products, thus increasing supply and lowering prices. "Devoting" a refinery to production of gasoline when it is supplied by barrels of crude oil would be a waste. Additionally, refineries are designed to make the most of the barrel. I think I see what you're asking but if I'm correct it should be irrelevant to the production of gasoline. |
"But isn't that still 2500 barrels now not going to make those other products? "
Yes it would. For every barrel processed we would have the appropriate ratio of all the products. "I see what you mean when you say that cargoes are not designated for one or the other, but with shale producing the one couldn't the normal crude refineries be devoted to the other? I'm confused." I am not sure what you mean by devoting a refinery. Do you mean taking an existing refinery that processes crude oil and use it to process Shale Oil? If that is your question I would say probably not. The reconversion would be so expensive it might be easier to just build a newer refinery. One of the advantages of a Shale Oil refinery is that it can be made smaller than a crude oil refinery. Have I deconfuse you or did I just make it worse? |
No, I can see the building of new refineries for shale, but then couldn't existing ones be devoted to just the other stuff?
I'm actually saying that after the fact to clear up what I meant, but earlier today LanceCPL explained to me privately that all the different products come out of the same crude anyway, and have to be that way. I'm still confused, but only because that's my natural state. |
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And at last we have a good summation of socioeconomics. Bravo Subman!!!! |
Shale oil bump.
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