The following video is a summary of an article written by Ross Tessian, in which he argues that the demand in EVs will rise more significantly than predicted over the next 10 years based on current uptake rates of new technologies. The result will be a drop in the global oil demand beginning in 2023:

https://www.youtube.com/watch?v=aUC6lsLr04I

A link to the original article:

https://seekingalpha.com/article/4225153-evs-oil-ice-impact-2023-beyond

Personally I don't think that the oil glut will happen as soon as he predicts. I do think that it can occur sometime within the next ten years provided that battery storage improves significantly (ie 500 Wh/kg or more) and the required infrastructure (charging stations, network upgrades, etc) are put in place.

A thing to keep in mind is that the electric thing will be largely restricted to little toy gimmicky very inconvenient "cars".

The heavy transport area will continue to be diesel based as the horsepower required is so great that a little battery is a waste of time.

Then there is the mining and agricultural and industry and shipping requirements for many large machines which are almost exclusively diesel powered.

For this large power area hydrogen is the obvious answer particularly for replacing diesel in cities for moving containers from the wharves which is mostly done with old diesel trucks which produce quite a bit of pollution. Hydrogen is already being used in several cities for buses and large trucks.

The tiny minds of the Greeny types seem to think that the world moves on the tiny toy gimmicky all electric inconveniences.

The Greeny dream that solar and wind will power the world is just a nightmare as most of the all electric cars are still coal powered from the charging stations.

Hydrogen CAN and IS being produced by solar and wind as the unreliable erratic output of these inefficient renewable things is quite OK for hydrogen production.

It helps to look at reality rather than Greeny imaginary things.

Bear in mind that the extremist Greenies want to CLOSE DOWN ALL INDUSTRY IN AUSTRALIA.

Smell the fear socko. Indestructible Lithium Titanate batteries are here !

https://www.youtube.com/watch?v=eAUYbSDEy6I&t=3s

North Coast reject Tweedledum just can't resist showing what a sad sick simpleton she really is. Her use of gay Greeny tactics of attacking the person who humiliated her are just so ineffective and such an admission of defeat.

Now ignoring the ignorant Nth Coast defeated Greeny ratbag and back to the TOPIC.




End of oil

Headline: The World Ends Tonight - Details at 11. This same story has been bandied about since Hubert showed his lack of belief in the industry’s innovation and persistence.

Analysis: Why Hubbert's Peak Oil Theory Fails

First, last and always, the world will never run out of coal, oil or natural gas. This is not because of some unlimited supply the public is unaware of or some miraculous regeneration previously unknown to science.

This is because the energy industry and the world's scientists are continually investigating new and/or improved sources of energy, improved techniques in finding and recovering hydrocarbons and improving the efficiency of all variety of devices that utilize these energy sources.

The costs associated with fossil fuels will fluctuate over time just as it has since the Colonel hit that first strike in PA. Meanwhile the costs of non-fossil, renewable sources will continue to drop as technology develops to improve those sources.

Eventually, in different locations around the world, at different times, those expenses will flip and future production after that will be solely for non-energy needs that will support higher prices that fuel or electrical generation.

One must realize that there are many uses of oil and gas beyond energy already (Insecticides, Ink, Floor Wax, Pens, Upholstery, Clothing, Boats, Sports Car Bodies, Nail Polish, Fishing Lures, etc.) and the need for flight fuel will most likely be the longest lasting energy need. The bottom line is what does it cost to generate and how many are willing/able to pay that expense.

The end of oil is always predicated on “recoverable” reserves. Every time the price of oil changes by a few dollars a barrel, “recoverable” gets redefined. The term should “ at $xx a barrel”.

Perhaps they can refine the many thousands of crashed Teslas in the junk yards into oil ?


https://schloss-post.com/content/uploads/pumpjacks.gif

What's wrong socko. You worried that you might not be able to ripoff the gullible motoring public on oil changes anymore ? Smell the fear socko. It's a given that there is a finite amount of polluting oil still left in the ground  :D LOL

Inflamed and angry the North Coast reject Tweedledum flies into standard Gay Greeny attack the person mode.

Her tiny wizened Globally Warmed "mind" just cannot cope with these real world things.

https://media.giphy.com/media/zilSkPwtnjRLi/200.gif
Reminds you of Tweedledum's burnt out "mind"

Smell the fear socko. Don't pay for oil when you can charge an EV for free from your own rooftop !

https://www.youtube.com/watch?v=xI166Ps8DIo&t=48s

Like a bad smell silly old Tweedledum just won't go away.

Petroleum is predicted to run out around 2059 - or sooner.. 2035 was the bottom line...

Why do you think the US dusted Sad Sam and retains a stranglehold on ME oil producing nations?  Because Sad Sam was a bad guy who killed Arabs and Persians?  Why do you think they're pally with the Saudi ruling group?  Because they are such lovely people?

;D  ;D  ;D  ;D  ;D

Jeez - they even let Arab princes run around rooting blonde sheilas who do something more than lie and take it and get pregnant over and over .....  gotta come to an end some time.....  8-)

On the evening of April 18 1977, President Jimmy Carter invited television cameras into the Oval Office and portentously announced to the American people that “tonight I want to have an unpleasant talk with you about a problem unprecedented in our history. With the exception of preventing war, this is the greatest challenge our country will face during our lifetimes.”

The unprecedented problem was energy. Or rather, the lack of it. “We simply must balance our demand for energy with our rapidly shrinking resources,” said the 39th President of the United States. “The oil and natural gas we rely on for 75 per cent of our energy are running out.”

To be Frank that is old now outdated news.

There is now more oil than the world knows what to do with.

There was a previous Doom's Day prediction :- Analysis: Why Hubbert's Peak Oil Theory Fails

Read all about it in this and many other refs:-  https://oilindustryinsight.com/oil-gas/insight-analysis/why-hubberts-peak-oil-theory-fails/


Once the HYDROGEN ENERGY REVOLUTION swings into full force oil use will decline.

juliar wrote on Jan 11^th, 2019 at 10:09am:

To be Frank that is old now outdated news. There is now more oil than the world knows what to do with. There was a previous Doom's Day prediction :- Analysis: Why Hubbert's Peak Oil Theory Fails Read all about it in this and many other refs:-  https://oilindustryinsight.com/oil-gas/insight-analysis/why-hubberts-peak-oil-theory-fails/ Once the HYDROGEN ENERGY REVOLUTION swings into full force oil use will decline.

Why pay for any of it when you can get it off your rooftop for zilch !!

https://www.youtube.com/watch?v=xI166Ps8DIo&t=49s

Oh that awful pong is still here.

The thick as a brick and dense without sense Tweedledum doesn't even know how solar works!!! How dumb and dense can one retard be ?


https://www.australiansolarquotes.com.au/wp-content/uploads/2012/01/PV-House2.gif

Here in Australia the operative word is NORTH. But the intensity of the density of Tweedledum's technical obtusosity will completely miss this point.

juliar wrote on Jan 11^th, 2019 at 10:09am:

To be Frank that is old now outdated news. There is now more oil than the world knows what to do with. There was a previous Doom's Day prediction :- Analysis: Why Hubbert's Peak Oil Theory Fails Read all about it in this and many other refs:-  https://oilindustryinsight.com/oil-gas/insight-analysis/why-hubberts-peak-oil-theory-fails/ Once the HYDROGEN ENERGY REVOLUTION swings into full force oil use will decline.

who is Frank and does he know that Hydrogen is mainly made form Fossil Fuels at the moment :) ;)

juliar wrote on Jan 11^th, 2019 at 10:09am:

To be Frank that is old now outdated news. There is now more oil than the world knows what to do with.

That was my point by quoting a dead man's  doom mongering from 40 years ago.

Look on the bright side. There is more oil for socko to drink :D LOL

The Media does everything it can to deny and thwart the progress of EV, because its like doing the same to the Internet.
The Media is caught in the past, just like the EU is and why Britain has 'exited' from it.
It's a sinking ship and the rats are starting to jump.
Trump says "Women & Children First!" (American Public)
but there are many in the 'Industries' of Politics, Military, Media, Religion, etc - who think there are more important people (like themselves) who think they are 'worth' being on those lifeboats first.  ::)

Even many Media Australians are still trapped in some Mad Max movie denial - that the future will be of scarce oil reserves and people fighting over them. A future without oil,  but a movie that gives no 'replacement' on offer.

But the OPEC countries will still control the flow and price of oil.

It has always been thus.  :(

Captain Nemo wrote on Jan 12^th, 2019 at 3:00pm:

But the OPEC countries will still control the flow and price of oil. It has always been thus.  :(

good let them.

won't stop me from charging up my EV from my own rooftop solar. They can drink their own stinken oil for all i care.

Sir lastnail wrote on Jan 12^th, 2019 at 3:19pm:

Captain Nemo wrote on Jan 12th, 2019 at 3:00pm: But the OPEC countries will still control the flow and price of oil. It has always been thus.  :( good let them. won't stop me from charging up my EV from my own rooftop solar. They can drink their own stinken oil for all i care.

I think Mr Nail sir,
You are finally experiencing that state which the Buddhists in Asia call 'Nirvana'. Where you are feeling that 'wave' of success slowly flow over you.
Everything you have fought and believe in via the Forum, is now coming true.
The old Dream you are leaving behind and seeing your new Dream appear as a brighter future for vehicles and the world they exist in with us.

I applaud you in sight and sound.
Well done.
:)

Captain Nemo wrote on Jan 12^th, 2019 at 3:00pm:

But the OPEC countries will still control the flow and price of oil. It has always been thus.  :(

We have moved on from the 70s. OPEC is much less powerful now than it was then.

There will not be a 'glut', any more than there is now, with all the oil just sitting there waiting to be pulled out. They will just stop extracting it as it becomes unprofitable.

juliar wrote on Jan 10^th, 2019 at 7:34am:

A thing to keep in mind is that the electric thing will be largely restricted to little toy gimmicky very inconvenient "cars". The heavy transport area will continue to be diesel based as the horsepower required is so great that a little battery is a waste of time. Then there is the mining and agricultural and industry and shipping requirements for many large machines which are almost exclusively diesel powered. For this large power area hydrogen is the obvious answer particularly for replacing diesel in cities for moving containers from the wharves which is mostly done with old diesel trucks which produce quite a bit of pollution. Hydrogen is already being used in several cities for buses and large trucks. The tiny minds of the Greeny types seem to think that the world moves on the tiny toy gimmicky all electric inconveniences. The Greeny dream that solar and wind will power the world is just a nightmare as most of the all electric cars are still coal powered from the charging stations. Hydrogen CAN and IS being produced by solar and wind as the unreliable erratic output of these inefficient renewable things is quite OK for hydrogen production. It helps to look at reality rather than Greeny imaginary things. Bear in mind that the extremist Greenies want to CLOSE DOWN ALL INDUSTRY IN AUSTRALIA.

I think that electric vehicles have gone past the point of being a "gimmick". With the money being invested into R & D for various EV components, EVs at the lower end of town, ie your Corollas and Camrys, will eventually be cost competitive to their ICE counterparts. I'd be surprised if this doesn't happen within the next 20 years at the most.

As for larger machines, I agree that it will be decades before energy storage is at a stage that can meet the energy requirements for such vehicles. If such vehicles are to use hydrogen as their fuel source I think that ammonia is the most effective storage medium for H2 based on the infrastructure and technology currently available.

Oil, Oil, as far as the eye can see.

Until the very promising HYDROGEN ENERGY REVOLUTION comes on line diesel will continue to be the fuel of choice for very large huge horsepower machines uses in transport, mining, industry, construction, agriculture, aviation, shipping, etc as the size of batteries required would just be too enormous to be practical.

The gimmicky very inconvenient hazardous electric toy cars will only continue as a small market once the much more convenient hydrogen fuel comes on line as many people simply cannot charge at home as they park on the street or live in unit or rent and so their all electric heaps will continue to be coal powered from charging stations.

A lot of the research into electrics is directed to the far more practical and convenient HYBRID cars which are very successful such as the Toyota Camry.

The myth that hydrogen is complicated to produce is dispelled by looking at the highly complex processes used to process crude oil.

Renewable Hydrogen is ideal to store energy produced by shoddy inefficient wasteful renewable solar and wind.

Hydrogen is already being used in cities for buses and large trucks to reduce diesel pollution.

Bear in mind oil can be produced from coal and we have some 500 years supply of cheap high energy coal.

It must be disappointing for the lying Extremist Greenies that their Global Warming political platform has been exposed as nothing but a money scamming HOAX invented by the United Nations.




Saudi Arabia has more oil than we may ever need
By Andy Critchlow 14 January 2019 — 9:30am

Saudi Arabia has finally silenced its peak-oil critics and simultaneously revived interest in its stalled $US2 trillion ($2.8 trillion) plan for a stock market float of state-owned producer Aramco.

The kingdom revealed this week it has enough crude to pump at current rates for at least another 70 years. At the end of 2017, Saudi oil reserves stood at an eye-watering 268 billion barrels, up from previous estimates of 266 billion. By comparison, the UK's remaining cache of retrievable oil under the seabed of the North Sea will be almost completely drained, probably after another couple of decades.

Read the rest of oil as far as the eye can see here

https://www.canberratimes.com.au/business/markets/saudi-arabia-has-more-oil-than-we-may-ever-need-20190114-p50r60.html

When people catch on that they can charge their EV's from their own rooftop solar why would they pay for oil  and oil changes on their unreliable clunkers ? Only losers like socko would promote such old rubbish that should have been thrown into a museum a long time ago !

https://www.youtube.com/watch?v=xI166Ps8DIo&t=50s

Now this might be a world first right on your Forum FreeDiver!

Where a member of yours says this:

Now, although Barnacle bangs away in the past with his Dirty Snowball (made by a 'guess') Theory support.

If you take a look at the Electric Universe proof about Comets - the main gist is the amount of ELECTRICITY they produce as their accumulated Negative (-) charge of being way out there in the Oort Cloud, etc, begins to 'react' as it comes towards the sun's Positive (+) charge. The 'Tail' of the Comet is one supercharged display of electricity. And these Comets DO NOT MELT for they return time and time again and even emit a Tail far out before they even feel the right temperature of 'heat' to emit 'melting'.

So basically I'm saying : Make an Electrical Engine based upon the 'Comet's' 'charging'.  :)

Silly stupid old Tweedledum still doesn't understand how solar works. How utterly dumb can she get ? Is she really autistic after a vaxx ?

juliar wrote on Jan 14^th, 2019 at 9:55pm:

Silly stupid old Tweedledum still doesn't understand how solar works. How utterly dumb can she get ? Is she really autistic after a vaxx ?

;D

juliar wrote on Jan 14^th, 2019 at 9:55pm:

Silly stupid old Tweedledum still doesn't understand how solar works. How utterly dumb can she get ? Is she really autistic after a vaxx ?

In what way do I not understand dickhead ? Is it possible for you to answer instead of hurling abuse all of the time :(

Gotta admit that was a goody.
Oh well, sorry for laughing Nail

Jasin wrote on Jan 14^th, 2019 at 11:07pm:

Gotta admit that was a goody. Oh well, sorry for laughing Nail

It's still trying to find an answer from google that it can copy and paste :D LOL

Up the North Coast they don't believe in vaxxing.

How many ways and times can Tweedledum say "I am dumb and thick and dense!!" ? Symptom of Autism following a vaxx ?

Must be frustrating to not be able to understand the big words adults use.

A hint - solar doesn't work very well sometimes. At night ?




How Trump-Modi orchestrated a crash in crude

1.Trump forced Saudi to pump up the supply ahead of Iran sanction

2. Saudi boosted oil supply to highest level

3. Modi called Trump & convinced him to Exempt India from Iran sanction

4. Trump Agreed

5. Oil glut

6. Price crashed

juliar wrote on Jan 15^th, 2019 at 9:22am:

Up the North Coast they don't believe in vaxxing. How many ways and times can Tweedledum say "I am dumb and thick and dense!!" ? Symptom of Autism following a vaxx ? Must be frustrating to not be able to understand the big words adults use. A hint - solar doesn't work very well sometimes. At night ?

That's what batteries are for dickhead ;)

The amount of electric cars sold each year is doubling, last year was 2 million sold, if this trend keeps happening , oil demand will falter.... ;)

DonDeeHippy wrote on Jan 17^th, 2019 at 5:24am:

The amount of electric cars sold each year is doubling, last year was 2 million sold, if this trend keeps happening , oil demand will falter.... ;)

socko and lee will be the only ones buying it :D LOL

The twins Tweedledum and Tweedledee are so thick, dumb and dense they don't realize how thick, dumb and dense they really are. Are they success stories for the FABIAN SOCIETY dumbing down of Australia ? Symptom of autism after a vax ? I thought rejects on the North Coast did not believe in vaxxing - they prefer to share their diseases. Wonder how low their IQs really are ?

Now ignoring the impaired twins and back to the TOPIC which is far too hard for the impaired twins to ever understand - too many big words.

The coal powered Teslas filling up at coal powered chargers are responsible.



Risking Trump ire, OPEC builds case for oil supply cut
Alex Lawler NOVEMBER 13, 2018 / 10:25 PM / 2 MONTHS AGO

LONDON (Reuters) - OPEC built a case on Tuesday for cutting oil output when it meets next month, warning that a supply glut could emerge in 2019 as the world economy slows and rivals increase production more quickly than expected.

https://i.postimg.cc/QdtBs3pc/oil-Capture.png
FILE PHOTO: Crude oil storage tanks are seen from above at the Cushing oil hub, in Cushing, Oklahoma, March 24, 2016. REUTERS/Nick Oxford/File Photo

Worried by a drop in oil prices and rising supplies, OPEC is talking again of reducing production just months after increasing it. Such a shift would anger U.S. President Donald Trump, who on Monday urged OPEC not to cut supply.

In a monthly report, the Organization of the Petroleum Exporting Countries said world oil demand next year would rise by 1.29 million barrels per day, 70,000 bpd less than predicted last month and the fourth consecutive reduction in its forecast.

Oil prices have dropped steeply from a four-year high above $86 a barrel in October, pressured by concern that global demand is weakening amid adequate supply, offsetting U.S. sanctions on Iran that have started to cut the OPEC country’s oil exports.

“Although the oil market has reached a balance now, the forecasts for 2019 for non-OPEC supply growth indicate higher volumes outpacing the expansion in world oil demand, leading to widening excess supply in the market,” OPEC said in the report.

“The recent downward revision to the global economic growth forecast and associated uncertainties confirm the emerging pressure on oil demand observed in recent months.”

Crude LCOc1 extended an earlier decline after the release of the OPEC report, trading as low as $66.65 a barrel, the lowest since March. [O/R]

Together with Russia and other allies, OPEC had agreed in June to boost supply after pressure from Trump to lower prices. The move partially unwound output cuts that began in January 2017 in an effort to clear a glut that formed in 2014-2016.

The group meets on Dec. 6 to set policy for 2019.

PRODUCTION RISING
In the report, OPEC said its oil output rose further in October by 127,000 bpd to 32.90 million bpd after the June deal.

The biggest rises came from the United Arab Emirates and top exporter Saudi Arabia. These helped offset declines in Venezuela, where economic crisis has curbed output, and Iran, as buyers walked away before sanctions started this month.

The October production rate is considerably more than OPEC expects consumers will require next year.

OPEC said the world would need 31.54 million bpd from its 15 members in 2019, down 250,000 bpd from last month. This suggests there will be a 1.36 million bpd surplus in the market should OPEC keep pumping the same amount and other things remain equal.

Saudi Energy Minister Khalid al-Falih on Monday had outlined a case for supply restraint, saying OPEC and its allies agreed that analysis showed a need to cut output next year by around 1 million bpd from October levels.

Oil demand is slowing as the world economy decelerates - OPEC nudged down its 2019 growth forecast in the report. The recovery in oil prices that followed the 2017 OPEC-led supply cut is still prompting more growth in rival production.

Non-OPEC supply will rise in 2019 by 2.23 million bpd, the Vienna-based organization said, 120,000 bpd more than previously thought and far more than the increase in world demand.

https://www.reuters.com/article/us-opec-report/risking-trump-ire-opec-builds-case-for-oil-supply-cut-idUSKCN1NI1B3?feedType=RSS&feedName=businessNews&utm_source=Twitter&utm_medium=Social&utm_campaign=Feed%3A+reuters%2FbusinessNews+%28Business+News%29

juliar wrote on Jan 17^th, 2019 at 12:04pm:

The coal powered Teslas filling up at coal powered chargers are responsible.

Yes and if all the cars bacame electric, at least they would be powered by coal from our own country and not the Middle East  ;)

Braindead silly old Tweedledee just can't help herself showing what a dumb dill she is.

juliar wrote on Jan 17^th, 2019 at 4:46pm:

Braindead silly old Tweedledee just can't help herself showing what a dumb dill she is.

how do you know it's a she dickhead ?

Braindead silly old Tweedledumb AND now Tweedledee each just can't help herself showing what a dumb dill she is.

You would have to be a impaired fool to think you could win any argument by trying to use the ineffective tactics universally used by Gay Greenies where they ARE ALWAYS RIGHT and anyone who disagrees MUST BE WRONG and MUST BE ATTACKED.

They usually try to make out that everything is a personal issue which it is not as FACTS are ALL THAT COUNT.

But then Greeny types flee from FACTS like blowflies flee from MORTEIN.

Wonder if these weirdohs will try to ban Australia Day this year ?

juliar wrote on Jan 17^th, 2019 at 11:51pm:

Braindead silly old Tweedledumb AND now Tweedledee each just can't help herself showing what a dumb dill she is. You would have to be a impaired fool to think you could win any argument by trying to use the ineffective tactics universally used by Gay Greenies where they ARE ALWAYS RIGHT and anyone who disagrees MUST BE WRONG and MUST BE ATTACKED. They usually try to make out that everything is a personal issue which it is not as FACTS are ALL THAT COUNT. But then Greeny types flee from FACTS like blowflies flee from MORTEIN. Wonder if these weirdohs will try to ban Australia Day this year ?

:D ;D :D ;D :D ;D LOL

Poor old Tweedledumb's tiny shrunken twisted mind is mentally exhausted and she is reduced to a blubbery heap. But what has the perils of being autistic got to do with oil ?

Yes we all know that most Tesla death robots are powered by coal from coal powered charging stations.

Now from an oil glut to a gasoline glut.


If You Can't Pipe It, Refine It: Alberta Seeks Oil Glut Solution (Monday, 7 January 2019)
By OGP Network - January 9, 2019

https://pbs.twimg.com/media/DwbPOTFU0AAbx7o.jpg
Raindear amongst the oil pipes

What’s worse: Too a lot oil, or an excessive amount of gasoline? The authorities of Alberta, weighing the potential of a brand new refinery for the province, could also be on its strategy to discovering out.

In 2018, surging crude manufacturing within the Canadian province bumped into restricted area on export pipelines, creating bottlenecks and sending the worth of native oil to document lows relative to world benchmarks. Now Premier Rachel Notley’s authorities desires to see if protecting extra of the oil at residence with a brand new refinery will make a distinction.

On Dec. 11, the federal government reported it was surveying non-public corporations about constructing a brand new refinery. The objective: Free up area for crude on native pipelines by turning extra of it into higher-value fuels akin to gasoline and diesel. Analysts, although, say present refineries within the province already produce extra refined gasoline than is required.

“Its not so much completely different than the difficulty they’ve with crude,” Jason Parent, V.P. of consulting at Kent Group Ltd, a downstream consultancy primarily based in London, Ontario. “You nonetheless must ship that product to market.”

The province will settle for submissions for refinery proposals till Feb. eight and can contemplate greenfield tasks and expansions at present websites. At this level, the federal government is just searching for a way of the tasks corporations could also be contemplating and isn’t but able to say how it will help these plans.

Heavy Western Canadian Select, the kind of crude produced in Alberta, fell to a $50 a barrel low cost to West Texas Intermediate, the U.S. benchmark. The state of affairs grew to become so acute that Alberta’s authorities introduced a compulsory, province-wide eight.7% manufacturing reduce to maintain costs from falling additional.

New oil export pipeline tasks — together with TransCanada Corp.’s Keystone XL, and the enlargement of the Trans Mountain pipeline to the Vancouver space — have confronted environmental opposition and court-imposed delays. Even Enbridge Inc.’s Line three enlargement, permitted and scheduled to start out operation within the second half of this yr, is going through authorized challenges from opponents.

While constructing extra refining capability within the province would cut back the glut of crude oil, the province’s 5 present refineries already produce extra refined fuels — together with gasoline, diesel and jet gasoline — than is required. And, as with crude oil, pipeline hyperlinks for refined merchandise to markets exterior Alberta are restricted.

The 300,000-bopd Trans Mountain line transported 42,000 bpd of fuels to the Vancouver space to be used by drivers in British Columbia. Enbridge’s Line 1 strikes gasoline and diesel from Edmonton, Alberta, to 3rd events in Gretna, Manitoba, however none to the U.S.

Alberta is already residence to Canada’s latest refinery. The North West Redwater Partnership’s Sturgeon plant, which opened in 2018, produces 40,000 bopd of diesel in addition to vacuum gasoil and propane and butane. But that venture solely got here to fruition with authorities loans and a dedication by Alberta to course of 37,500 bopd of royalty bitumen on the plant for a toll that helps cowl building prices, which have greater than doubled because the venture was first proposed to $7.2 billion (C$9.7 billion) as of final yr.

Building refineries in Alberta isn’t low cost. A single 100,000 bopd plant would price between $6.9 billion and $eight.6 billion versus $2.9 billion to $three.6 billion in south China, IHS Markit mentioned in a 2017 report.

At the identical time, a brand new refinery would compete in a North American market the place gasoline demand is flat or declining, and the place refineries constructed many years in the past are already supplying native markets with the gasoline they want, in keeping with Kevin Birn, IHS Markit’s director of North American crude oil markets.

“More Alberta-based refining was a no brainer twenty or third years in the past,” mentioned Gil McGowan, president of Alberta Federation of Labor and a supporter of constructing extra refining capability in Alberta. “The economics are more difficult now.” A brand new refinery must deal with exports, in all probability to Asia, he mentioned.

Refineries would release some area on…

Read more here

http://ogpnetwork.com/if-you-cant-pipe-it-refine-it-alberta-seeks-oil-glut-solution-monday-7-january-2019/