Saudis may re-route oil currently on its way to United States

[BLA + 1,666]

On 4/29/2020 at 3:59 PM, Name is Mud said:

My family and many other families in the US have been subjected to this “boom or bust” ideology for several generations. OPEC/Oil Cartel has left the US/World economy in absolute ruin multiple times. There is no balance of power that can control them. They have absolute control over the world’s economy. In my opinion, OPEC/Oil Cartel have in many ways engaged in terroristic type behavior and mafia style business tactics. Actions the US should take:  Boycott all foreign oil imports into the US or impose enormous tariffs. Pull all US military support to the Middle East. Cut off all foreign aid to OPEC nations. Impose blockades over all OPEC nations ability to deliver oil to nations that are US allies. Will this happen? A resounding NO! 

When you say OPEC you are really talking about Saudi Arabia.

The death of Saudi Arabia is NOT greatly exaggerated in my opinion.  KSA will die from within. 

First quarter Saudi deficit was $34 Billion.  For two of  the three Q1 months the price of oil was over $50.  What will their deficit be for Q2 ?  Q 3 ?  Q4 ? 

Then how much of the Aramco IPO will they buyback after lock up comes off in June. That could add another $25 Billion blown. Saudi Banks , under the direction of the government, lent money to the masses of common people to buy a majority of the ARAMCO offering. Now with the deficits will they cancel the program to support the stock with buyback.  

Q1 + Q2 + Buyback = $100 Billion plus that will require sizeable bond issues and loans. 

Risk of conflict in Middle East growing by the day. 

Goldman says oil prices won't come back until the end of 2021. (20 Months or 7 Quarters)

No outside pressure needed.  The Salman extended family of uncles and cousins are not happy.  The Shia minority in the east have never been happy.

Oil will come back for most, but not enough for what the Kingdom needs.  

They can hold on for a few years but .  .  .  .  .

 

Edited May 9, 2020 by BLA

[nsdp + 449]

On 4/22/2020 at 1:06 PM, Gerry Maddoux said:

Right you are! I used the wrong terminology. Then the question is do they have a right to the LOOP? I mean, can they be banned?

Supertankers tested at Port Corpus Christi

VLCC's have been docking at Corpus for 3 years now.

https://www.bizjournals.com/sanantonio/madness/supertankers-tested-at-port-corpus-christi.html

They can do it at Port A as well . Most of you don't know the difference between a VLCC and a ULCC.  The later uses LOOp or lightering.

" A 1,093-foot-long EuroNav tanker named the Anne docked at the Occidental Petroleum Corp. (NYSE: OXY) crude oil export facility just two hours south of San Antonio in the San Patricio County town of Ingleside. Classified as a Very Large Crude Carrier, or VLCC tanker, the Belgian-owned ship is the largest crude oil tanker to call on a Gulf of Mexico port and is expected to boost crude oil exports from the Lone Star State. "  If they can export they can import as well.

 

[nsdp + 449]

3 hours ago, BLA said:

When you say OPEC you are really talking about Saudi Arabia.

The death of Saudi Arabia is NOT greatly exaggerated in my opinion.  KSA will die from within. 

First quarter Saudi deficit was $34 Billion.  For two of  the three Q1 months the price of oil was over $50.  What will their deficit be for Q2 ?  Q 3 ?  Q4 ? 

Then how much of the Aramco IPO will they buyback after lock up comes off in June. That could add another $25 Billion blown. 

Q1 + Q2 + Buyback = $100 Billion plus that will require sizeable bond issues and loans. 

Risk of conflict in Middle East growing by he day. 

Goldman says oil prices won't come back until the end of 2021. (20 Months or 7 Quarters)

No outside pressure needed.  The Salman extended family of uncles and cousins are not happy.  The Shia minority in the east have never been happy.

Oil will come back for most, but not enough for what the Kingdom needs.  

They can hold on for a few years but .  .  .  .  .

 

Try 100 years if the dollar doesn't do what the German Mark did in 1923.   Logic is about as sound as saying VLCC's need to dock at LOOP.

[nsdp + 449]

On 4/28/2020 at 8:19 AM, wrs said:

It's my understanding that WTI is the right input, it's 38-42 api which is what refiners need.  The LTO is where you don't get as much diesel on a single stream input to a simple refinery.  If you have a more complex refinery and blend it with the heavier oils which don't jus. Pasot come from KSA, then you get a 38-42 api stream and that is what they do at Cushing as I understand it.  They blend the heavy Canadian with the ligher LTO to get the oil to meet spec

WCS is not a substitute for Saudi heavy.  It has a diluent that has to be removed  and sulfur content issues which either 1 reduce output or 2. require additional hydrocracking to meet sulfur standards for products..    There are four refineries in Texas set up for WTI. Valero Three Rivers and Moore, Phillips 66 Borger and CVS in El Paso  are the only operating  refineries that can use WTI.  The Tar Sands on the Gulf coast comes in in heated rail cars o avoid problems like Pegasus caused EXXON.

o: Courtesy NuStar Asphalt LLC

2of5NuStar Asphalt has been transporting heavy crude from western Canada to its two East Coast asphalt plants since late in 2011.Photo: Courtesy NuStar Asphalt LLC

3of5Transloading 2: Railcars in Alberta, Canada, await the arrival of tanker trucks. The railcars will transport heavy Canadian crude to a plant owned by NuStar Asphalt LLC.Photo SAN ANTONIO - The surge in North American oil production has prompted energy companies to invest heavily in a 19th-century technology: rail.

Companies including Valero Energy Corp., Tesoro Corp. and NuStar Energy already have purchased or leased rail cars to move crude to their refineries.

 

 

 

There aren't enough pipelines to move crude out of major producing regions, including western Canada and the Bakken Shale of North Dakota, so refiners are turning to rail.

Transporting crude by rail costs more than shipping it through a pipeline, but refiners can buy North American crude oil at reduced prices, offsetting the higher cost of rail.

 

That means mile-long trains now chug up to refineries to deliver crude. There has been a 50-fold increase in carloads of crude moving by rail since 2009, a recent report from Raymond James & Associates notes.

Crude by rail "is here to stay" and is set to grow as a complement to pipelines, analysts at Raymond James & Associates said in a recent report to clients.

(Rail isn't much used to move crude from the South Texas' Eagle Ford Shale, however, because it is near Gulf Coast refineries, analysts said.)

 

Recent moves by San Antonio-based Valero, the world's largest independent refiner, illustrate the rush to rail.

Less than a month ago, Valero said it would own 9,000 rail cars by the end of 2014. That plan already has been revised, as the company will own 12,320 rail cars by the second quarter of 2015, spokesman Bill Day said.

"NuStar Asphalt's Rod Pullen, vice president of operations, said he believes that NuStar is now the biggest mover of heavy Canadian crude oil, but he expects Valero to surpass its totals in the future.

NuStar has leased special rail cars to transport the heavy Canadian oil. When bitumen is loaded onto rail cars, it's at a temperature of 150 to 180 degrees, but cools down during the trip. When the rail cars arrive at refineries, they're hooked up to a steam-producing mechanism that heats the heavy oil enough to be unloaded."

Rail offers flexibility, he said, and "it's significantly faster than moving by pipeline." Rail cars move at 50 to 60 mph while pipelines move crude at 10 to 20 mph. "

  Rail also does not have 30% dilution mixed in that is of no value to the refinery.   this is  the way 95% of the Canadian Tar sands reach the gulf cost. 3x faster and you get a whole barrel instead of 2/3 of a barrel of heavy oil.   Phillips 66 owns 2000 rail cars. https://www.houstonchronicle.com/business/energy/article/Rail-chugs-into-picture-to-secure-role-moving-oil-4548013.php

Rail Cars avoid the batching problems you have with mixed gravity shipments in pipelines.

Edited April 30, 2020 by nsdp
typos

[Jay McKinsey + 1,490]

15 minutes ago, nsdp said:

WCS is not a substitute for Saudi heavy.  It has a diluent that has to be removed  and sulfur content issues which either 1 reduce output or 2. require additional hydrocracking to meet sulfur standards for products..    There are four refineries in Texas set up for WTI. Valero Three Rivers and Moore, Phillips 66 Borger and CVS in El Paso  are the only operating  refineries that can use WTI.  The Tar Sands on the Gulf coast comes in in heated rail cars o avoid problems like Pegasus caused EXXON.

o: Courtesy NuStar Asphalt LLC

2of5NuStar Asphalt has been transporting heavy crude from western Canada to its two East Coast asphalt plants since late in 2011.Photo: Courtesy NuStar Asphalt LLC

3of5Transloading 2: Railcars in Alberta, Canada, await the arrival of tanker trucks. The railcars will transport heavy Canadian crude to a plant owned by NuStar Asphalt LLC.Photo SAN ANTONIO - The surge in North American oil production has prompted energy companies to invest heavily in a 19th-century technology: rail.

Companies including Valero Energy Corp., Tesoro Corp. and NuStar Energy already have purchased or leased rail cars to move crude to their refineries.

 

 

 

There aren't enough pipelines to move crude out of major producing regions, including western Canada and the Bakken Shale of North Dakota, so refiners are turning to rail.

Transporting crude by rail costs more than shipping it through a pipeline, but refiners can buy North American crude oil at reduced prices, offsetting the higher cost of rail.

 

That means mile-long trains now chug up to refineries to deliver crude. There has been a 50-fold increase in carloads of crude moving by rail since 2009, a recent report from Raymond James & Associates notes.

Crude by rail "is here to stay" and is set to grow as a complement to pipelines, analysts at Raymond James & Associates said in a recent report to clients.

(Rail isn't much used to move crude from the South Texas' Eagle Ford Shale, however, because it is near Gulf Coast refineries, analysts said.)

 

Recent moves by San Antonio-based Valero, the world's largest independent refiner, illustrate the rush to rail.

Less than a month ago, Valero said it would own 9,000 rail cars by the end of 2014. That plan already has been revised, as the company will own 12,320 rail cars by the second quarter of 2015, spokesman Bill Day said.

"NuStar Asphalt's Rod Pullen, vice president of operations, said he believes that NuStar is now the biggest mover of heavy Canadian crude oil, but he expects Valero to surpass its totals in the future.

NuStar has leased special rail cars to transport the heavy Canadian oil. When bitumen is loaded onto rail cars, it's at a temperature of 150 to 180 degrees, but cools down during the trip. When the rail cars arrive at refineries, they're hooked up to a steam-producing mechanism that heats the heavy oil enough to be unloaded."

Rail offers flexibility, he said, and "it's significantly faster than moving by pipeline." Rail cars move at 50 to 60 mph while pipelines move crude at 10 to 20 mph. "

  Rail also does not have 30% dilution mixed in that is of no value to the refinery.   this is  the way 95% of the Canadian Tar sands reach the gulf cost. 3x faster and you get a whole barrel instead of 2/3 of a barrel of heavy oil.   Phillips 66 owns 2000 rail cars. https://www.houstonchronicle.com/business/energy/article/Rail-chugs-into-picture-to-secure-role-moving-oil-4548013.php

Diluent is only an issue for pipeline transport but not rail transport?

[nsdp + 449]

18 minutes ago, Jay McKinsey said:

Diluent is only an issue for pipeline transport but not rail transport?

No one in their right mind puts diluent in a rail car.  Regular tar sands is solid; so, if there is an accident  it doesn't leak, catch fire or explode.   You bring in a crane  put the tank car back on the tracks do a safety inspection and resume the haul.  Dilbit leaks, catches fire and explodes. . UP and BNSF will no longer accept dilbit cars for delivery.  KC Southern will stop this summer.  that will leave no ready access for Dilbit to the  Gulf Coast.    Reid vapor pressure for dilbit dilutant is too high to go through Cushing in the summer'. Too much butane and pentane in it.   You can't use those in summer blend gasoline either.

[Jay McKinsey + 1,490]

5 minutes ago, nsdp said:

No one in their right mind puts diluent in a rail car.  Regular tar sands is solid; so, if there is an accident  it doesn't leak, catch fire or explode.   You bring in a crane  put the tank car back on the tracks do a safety inspection and resume the haul.  Dilbit leaks, catches fire and explodes. . UP and BNSF will no longer accept dilbit cars for delivery.  KC Southern will stop this summer.  that will leave no ready access for Dilbit to the  Gulf Coast.    Reid vapor pressure for dilbit dilutant is too high to go through Cushing in the summer'. Too much butane and pentane in it.   You can't use those in summer blend gasoline either.

I was confused because you said "It has a diluent that has to be removed" but the article you quoted said this:

Rail also does not have 30% dilution mixed in that is of no value to the refinery.   this is  the way 95% of the Canadian Tar sands reach the gulf cost. 3x faster and you get a whole barrel instead of 2/3 of a barrel of heavy oil.   Phillips 66 owns 2000 rail cars.

[nsdp + 449]

4 minutes ago, Jay McKinsey said:

I was confused because you said "It has a diluent that has to be removed" but the article you quoted said this:

Rail also does not have 30% dilution mixed in that is of no value to the refinery.   this is  the way 95% of the Canadian Tar sands reach the gulf cost. 3x faster and you get a whole barrel instead of 2/3 of a barrel of heavy oil.   Phillips 66 owns 2000 rail cars.

The unheated cars DOT111 (now illegal) needed dilbit so you could load and unload.  Steam heated cars don't need a dilutant; the temperature is raised  to the viscosity temperature and the tar sands will flow like thick chocolate .syrup.    They are much much safer that way.  No vapor to flash and start a fire or explosiion

[Jay McKinsey + 1,490]

1 hour ago, nsdp said:

It has a diluent that has to be removed  and sulfur content issues which either 1 reduce output or 2. require additional hydrocracking to meet sulfur standards for products..

Ok, I'm still confused. You say there are two reasons that WCS is not a substitute for Saudi heavy - diluent and sulfur. But according to that article 95% of WCS in the Gulf is via rail and doesn't have diluent do how is that a problem? The other reading I've been doing suggests that WCS is a valid substitute with the appropriate price discount.

Prompt Western Canadian Select (WCS) prices delivered to the Houston area in 2019 averaged a discount of roughly $3.25/bl to prompt Mexican Maya delivered at the Gulf coast as of 23 December, which is wider by roughly $1.55/bl than the WCS Houston discount to Gulf coast-delivered Maya in 2018, at $1.68/bl. WCS Houston averages a discount of roughly $3/bl to US Gulf-delivered Colombian Castilla in 2019, wider by about $1.50/bl than in 2018, and the heavy Canadian grade at Houston roughly averaged an $8.10/bl discount to US Gulf-delivered Arab Heavy in 2019, wider by about $3.15/bl than in 2018.

Canadian crude ranked fifth at 193,000 b/d for US Gulf imports in 2014, behind Colombia, Mexico, Saudi Arabia and Venezuela. But from January through September in 2019, Canada ranked second behind only Mexico, according to the US Energy Information Administration (EIA). https://www.argusmedia.com/en/news/2040692-viewpoint-canadian-crude-makes-inroads-at-gulf-coast

 

[RSD + 41]

U.S. production has only dropped 900,000 barrels so far - don't be surprised if the Saudis and Russians wind back the deal if there isn't further production cuts - https://www.investing.com/analysis/oil-production-cut-update-what-to-expect-next-from-the-largest-suppliers-200523118?utm_source=Desktop Notifications&utm_medium=referral

[ceo_energemsier + 1,818]

Saudi crude buyers cancel at least 7 supertankers after freight hike - sources

 

 

LONDON, April 29 (Reuters) - U.S. buyers of Saudi Arabian crude oil cancelled at least seven April-loading tankers after a jump in freight costs, two industry sources said, likely to result in lower-than-expected shipments from the world's top exporter.

The move shows how some buyers are not rushing to take much extra oil despite a slide in prices this month to below $16 a barrel, the lowest this century, as demand has collapsed due to government measures to contain the spread of the coronavirus.

In March, Saudi Arabia had cut its official selling prices for April crude and vowed to boost exports after a supply cut deal by the Organization of the Petroleum Exporting Countries and rivals like Russia collapsed.

But tanker rates soared and Saudi Arabia told buyers it would cut compensation payments for freight costs because of extraordinary conditions in the freight market.

Freight costs jumped globally because more ships were needed to deliver oil after Saudi Arabia and other Middle East producers ramped up output after the talks to extend the OPEC-led production cut deal broke down.

This killed the economics of importing the extra barrels, one source said.

"U.S. refiners gave back at least seven VLCCs because the freight protection was lifted," one of the sources, who spoke on condition of anonymity, said. "If they had got the freight protection, they would have taken these barrels."

Saudi state oil company Aramco did not immediately respond to a request for comment.

Even after the cancellations, the volume of April-loading Saudi crude heading to the United States is still set to increase, the source said. Saudi exports to all destinations are expected to rise this month.

The changes in supply terms were seen as likely to lead to cancellations of April cargoes by buyers across the world as they were not expecting to bear transport costs in full.

Iraq, OPEC's second biggest producer, also informed customers it was unable to compensate for the jump in freight costs.

 

[BLA + 1,666]

On 4/29/2020 at 9:56 PM, nsdp said:

Supertankers tested at Port Corpus Christi

VLCC's have been docking at Corpus for 3 years now.

https://www.bizjournals.com/sanantonio/madness/supertankers-tested-at-port-corpus-christi.html

They can do it at Port A as well . Most of you don't know the difference between a VLCC and a ULCC.  The later uses LOOp or lightering.

" A 1,093-foot-long EuroNav tanker named the Anne docked at the Occidental Petroleum Corp. (NYSE: OXY) crude oil export facility just two hours south of San Antonio in the San Patricio County town of Ingleside. Classified as a Very Large Crude Carrier, or VLCC tanker, the Belgian-owned ship is the largest crude oil tanker to call on a Gulf of Mexico port and is expected to boost crude oil exports from the Lone Star State. "  If they can export they can import as well.

 

nsdp

Don't be such a piss ant.  VLCCs can partially load for exports at Corpus Christi. 

For exports they dock an empty VLCC at Corpus and load a little over 1 million bbls.  Then they have to move offshore and do the reverse lightering.  Takes 10 days to fill the VLCC !  Can export a full VLCC at the Loop in 24 hours.  

Also, most of the Canadian dilbit is exported via pipeline. Your 2013 articles are very dated.  Heated unit train tank cars with stir wheels transported some bitumin when oil was $90 - $100 bbl.   Very expensive . Between $20 to $28 bbl just to transport on heated tank cars from Canada to Gulf.  These tank railcars had a very short useful life.

The Saudis can unload their VLCCs using lightering. (Takes 10 days) .  Or they can try to get access to the Loop. The Loop is used more for exporting then importing oil in the U.S.

Trump should send the tankers home.  This story about Trump threatening the Saudis with removal of U.S. troops is just that a cover story to make Trump look strong.  A Joke.  Trump kisses MBS's ass.  

Bring the troops home.  

Let Iran close the straights of Hormuz

Not our problem.  

Trumps and Kushners must have some joint real estate development deal agreement post Trump's Presidency.   It's the only reason for Trump's benevolent treatment of the butcher MBS. 

By the way after Occidental were told by the Army Corp of Engineers that dredging the Corpus channel deep enough to accommodate a full VLCC was not feasible they sold the Export terminal.  

Last year their were 8 proposals to build VLCC export terminals on the Gulf.  Two were possible.  The current price crash may alter those plans. 

 

Edited May 9, 2020 by BLA

[JoMack + 549]

Saudi Arabia has a fleet of supertankers holding 43 million bbls of crude heading the U.S.  Scheduled to arrive on May 24, 2020.  So, what's up with America First?  The industry has almost 20 million bbls off water!  The crude price is increasing due to production cuts.  We need America to OPEN UP!!  The big "liberal" cities are holding their citizens hostage and our economic foothold is sliding into the mud!  Bloomberg (ex-Presidential candidate - D) is working with Johns Hopkins to do tracing for New Yorkers who have coronavirus and who they were in contact with?  Trump needs to stop the media show and start opening the doors with the DOJ to protect our rights.  And, turn those SA bbls back to the hole those bbls came out of!!!  

[nsdp + 449]

11 hours ago, BLA said:

nsdp

Don't be such a piss ant.  VLCCs can partially load for EXPORTS at Corpus.

They dock an empty VLCC at Corpus and load a little over 1 million banks.  Then they do the reverse lightering.  Takes 9 days !  Can export a full VLCC at the Loop in 24 hours.  

Also, most of the CD filing is exported via pipeline. Your 2013 articles are a bit dated.  Heated unit train tank cars with stir wheels transported some bitumin when oil was $90 - $100 bbl.   Very expensive . Over $20 bbl to transport on heated tank cars from CD to Gulf.  These tank railcars had a very short useful life.

The Saudis can unload their VLCCs using lightering.  

Trump should send them home.  This story about Trump threatening the Saudis with removal of U.S. troops is just that a cover story to make Trump look strong.  A Joke.  Trump kisses MBS  ass.  

Bring the troops home.  

Let Oran close the straights of Hormuz

Not our problem.  

Trumps and Kushners must have some joint real estate development deal agreement post Trump's Presidency.   It's the only reason for Trump's benevolent treatment of the butcher MBS. 

By the way after Occidental were told by the Army Corp of Engineers that dredging the Corpus channel deep enough to accommodate a full VLCC was not feasible they sold the Export terminal.  

Last year their were 8 proposals to build VLCC export terminals on the Gulf.  Two were possible.  The current price crash may alter those plans. 

 

 

23 hours ago, Jay McKinsey said:

Ok, I'm still confused. You say there are two reasons that WCS is not a substitute for Saudi heavy - diluent and sulfur. But according to that article 95% of WCS in the Gulf is via rail and doesn't have diluent do how is that a problem? The other reading I've been doing suggests that WCS is a valid substitute with the appropriate price discount.

Prompt Western Canadian Select (WCS) prices delivered to the Houston area in 2019 averaged a discount of roughly $3.25/bl to prompt Mexican Maya delivered at the Gulf coast as of 23 December, which is wider by roughly $1.55/bl than the WCS Houston discount to Gulf coast-delivered Maya in 2018, at $1.68/bl. WCS Houston averages a discount of roughly $3/bl to US Gulf-delivered Colombian Castilla in 2019, wider by about $1.50/bl than in 2018, and the heavy Canadian grade at Houston roughly averaged an $8.10/bl discount to US Gulf-delivered Arab Heavy in 2019, wider by about $3.15/bl than in 2018.

Canadian crude ranked fifth at 193,000 b/d for US Gulf imports in 2014, behind Colombia, Mexico, Saudi Arabia and Venezuela. But from January through September in 2019, Canada ranked second behind only Mexico, according to the US Energy Information Administration (EIA). https://www.argusmedia.com/en/news/2040692-viewpoint-canadian-crude-ma kes-inroads-at-gulf-coast

 

The difference between a "dilbit barrel' (dilute Bitumen) which is 30% diluent and 70% bitumen and a bitumen barrel  is 12.6 gallons of bitumen.  42- (42x.3=12.6) =29.4 net  barrels of bitumen.   The arm chair "'gagers" writing news stories do not subtract the diluent to get net barrels of bitumen.  It is also a distinction that the promoters like TransCanada and Enbridge don't clarify.   EIA numbers are just gross barrels crossing the border barrels and do NOT differentiate between dilbit and bitumen barrels.   I am not sure what the split between  rail which will be whole bitumen  barrels and dilbit barrels is  but total  real barrels of bitumen was less than 390,000 b/d barrels of bitumen per day in 2019. The rest is the propane butane natural gasoline mix that has to be refractionated and then  someone has to  find  a home for it.  That is a real chore right now since Mont Belvieu is 100% full.  The Gulf Coast  refinery currently has to store it in its own product tanks; they can't dump it the way SoOhio Cleveland used to do. .  That cuts storage for refinery runs.   This disposal issue is why WCS dilbit is not a good substitute.  The diluent also does not always stay mixed in the pipeline.  That can sometimes  cause slugging and can shut down  or rupture a pipeline.  That was the cause of the rupture of the Pegasus line in Arkansas and the Enbridge line under the Kalamazoo river. More recently both of these are dilbit https://www.theglobeandmail.com/business/industry-news/energy-and-resources/article-enbridge-to-restart-pipeline-after-oil-leak-in-us-transcanada-line/

Enbridge to restart pipeline after oil leak in U.S., TransCanada line still down

 

The 2014 numbers were 100% rail. The new tie from the Canadian border  to Steele City Neb to Cushing had not been finished until 2016 2Q  So any time you see Canadian bitumen numbers you need to know how it is shipped.

Dilutent is why you cannot make a direct comparison between Canadian bitumen to Maya, Orinoco, MARS or Saudi Heavy.   You need 130,000 barrels of dilbit to have the same amount of feedstock as Midland sour, MARS, Maya, Orinoco etc.

Edited May 1, 2020 by nsdp

[nsdp + 449]

11 hours ago, BLA said:

nsdp

Don't be such a piss ant.  VLCCs can partially load for EXPORTS at Corpus.

They dock an empty VLCC at Corpus and load a little over 1 million banks.  Then they do the reverse lightering.  Takes 9 days !  Can export a full VLCC at the Loop in 24 hours.  

Also, most of the CD filing is exported via pipeline. Your 2013 articles are a bit dated.  Heated unit train tank cars with stir wheels transported some bitumin when oil was $90 - $100 bbl.   Very expensive . Over $20 bbl to transport on heated tank cars from CD to Gulf.  These tank railcars had a very short useful life.

The Saudis can unload their VLCCs using lightering.  

Trump should send them home.  This story about Trump threatening the Saudis with removal of U.S. troops is just that a cover story to make Trump look strong.  A Joke.  Trump kisses MBS  ass.  

Bring the troops home.  

Let Oran close the straights of Hormuz

Not our problem.  

Trumps and Kushners must have some joint real estate development deal agreement post Trump's Presidency.   It's the only reason for Trump's benevolent treatment of the butcher MBS. 

By the way after Occidental were told by the Army Corp of Engineers that dredging the Corpus channel deep enough to accommodate a full VLCC was not feasible they sold the Export terminal.  

Last year their were 8 proposals to build VLCC export terminals on the Gulf.  Two were possible.  The current price crash may alter those plans. 

 

Phase 1 of the Port of Corpus  expansion for both import and export has been complete awhile; Phase 2 is already under way.  https://www.kiiitv.com/article/news/local/2nd-phase-of-dredging-to-get-underway-at-the-port-of-cc/503-3db89f3b-462c-4f4e-ba2f-64b119446c4d Valero has been unloading VLCC's at Corpus for 4 years now.  They have been using Lightering Inc https://lightering.com/contact-us/ to do a partial unload.  They typically need 9-12 hours instead of your 9 days to do the transfer from the VLCC to barges.  You should go watch them some time you might learn something.

[Ty Griffith 0]

will oil go down monday WTI?

 

[Lisha 0]

On 4/22/2020 at 10:40 AM, BLA said:

Saudis dumping 40mm to 50mm bbls oil on U.S. market.

Bring the troops home.

Bring the Navy home.

Close the bases.  

Wish MbS good luck . .   have fun.  

Forbes article is correct.  The only way to correct the oil supply crisis is let Iran close the straights of Hormuz.  

https://www.forbes.com/sites/timtreadgold/2020/04/23/lifting-the-oil-price-is-easy-block-the-persian-gulf/#3fd1fae86c22 

Simple solution. The market would be balanced.   It would work.

https://finance.yahoo.com/news/saudi-arabia-may-route-tankers-141430393.html

There are between 20 to 30 tankers full of oil off the coast of California. Mostly from Iraq, Nigeria, Algeria, and growing.  

The same traffic will be piling up off the U.S. Gulf coast in a couple of weeks.

Trump doesn't care as he supports the oil majors and Saudi Aramco at the expense of the U.S. independents and thousands of jobs that  get pummeled.  

True, but trump and oil majors going to get hit as well.

[BLA + 1,666]

On 5/1/2020 at 12:17 AM, nsdp said:

Phase 1 of the Port of Corpus  expansion for both import and export has been complete awhile; Phase 2 is already under way.  https://www.kiiitv.com/article/news/local/2nd-phase-of-dredging-to-get-underway-at-the-port-of-cc/503-3db89f3b-462c-4f4e-ba2f-64b119446c4d Valero has been unloading VLCC's at Corpus for 4 years now.  They have been using Lightering Inc https://lightering.com/contact-us/ to do a partial unload.  They typically need 9-12 hours instead of your 9 days to do the transfer from the VLCC to barges.  You should go watch them some time you might learn something.

Phase ll brings the channel depth to 54 ft.  You need 75 ft to handle a full VLCC .  Sorry you are wrong. 

They can unload 2mm bbl VLCC in 12 hours by lightering.  LOL. That's funny.  VERY WRONG Again. 

Phase lll is to build an export terminals on the Harbor Island.  Carlyle group was committing $10 Billion to the project.  Then Army Corp came back and said can only go to 54 ft.  Carlyle said see ya and bolted from the project. 

Phase lV consists of two applications to build offshore terminals (like the Loop) that originated in Corpus Christi.  I don't know where they stand .  They were under review by the EPA. But those proposing (one is Trafigura) are most likely reviewing their Final Investment Decision (FID) at this time in light of current events. 

I assume the article you posted dated April 2020 is an attempt by locals to keep the dream alive.  The port authority will do anything to keep the projects moving forward, as they should.  

Also, regard Saudi heavy.  The Saudis have been exporting an avg of 560k bbls a day to U.S.  Enough to supply their Motiva plant.  

U.S. Gulf refineries use Canada, Iraq, Columbia , Mexico for the approx 4 mm bbls/day of heavy needed by the Gulf.  

 

I have not heard a confirmation of what grade of oil Saudis are shipping.  Heavy v. Light

Edited May 5, 2020 by BLA

[ceo_energemsier + 1,818]

Hey BLA blaaah blaaah blahhhhhh

You seem like a paper tiger

too many words for too little effect that  could be positive...

Let us know

how many wells you have drilled/financed? and how many barrels of oil you export or even refine in the country!!!!!!!!!!!!!!!!!!!!!!!!

 

 

otherwise it is all hogwash!!!!!!!!!!!!!!!!!

 

 

cheers

You seem to be the same guy that used to on this forum under a different nick name

JABBAR!!! or somtehting to that effect!

[BLA + 1,666]

18 hours ago, ceo_energemsier said:

Hey BLA blaaah blaaah blahhhhhh

You seem like a paper tiger

too many words for too little effect that  could be positive...

Let us know

how many wells you have drilled/financed? and how many barrels of oil you export or even refine in the country!!!!!!!!!!!!!!!!!!!!!!!!

otherwiseit is all hogwash!!!!!!!!!!!!!!!!!

cheers

CEO 

Can't match your cut and paste talents.

All that cut & paste of yesterday's news. Worthless .  LOL

The OP Forum Monitor should fine you for littering .

Have you ever come up with an original thought in your life ?

 

 

Edited May 5, 2020 by BLA

[ceo_energemsier + 1,818]

3 hours ago, BLA said:

CEO 

Can't match your cut and paste talents.

I understand, my 5 year old daughter enjoys it also.  It's a stage kids go thru. Not worried she'll grow out of it soon. 

All that cut & paste of yesterday's news. Worthless .  LOL

The OP Forum Monitor should fine you for littering .

Have you ever come up with an original thought in your life ?

Cheers

 

YAWN!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Cheers!!

[ceo_energemsier + 1,818]

How Mohammed bin Salman Hit a Dead End in Washington

 

 

https://finance.yahoo.com/news/mohammed-bin-salman-hit-dead-040036869.html