All it takes is a big ol’ tax levied on it, which Buttjudge said he’s up for.
Sure that’s why petrol is $3 bucks a litre across the pond. They slaped social welfare taxes all over the cost of fuel. But that has zero to do with production and supply vs demand the operators still only get the fungible world market price for their product. My point is that with our current federal 18.4 cents and the avg of 22 cents state gas taxes oil would have to be $246 per barrel to hit $7 per gallon that’s keeping the same margins as right now for the refinery, wholesaler, distributor, and station operators cuts. Cutting keystone is no rasing taxes that’s apples to oranges. Keystone is 800,000 bbl/day in heavy sour synthetic dilute bitumen aka synbit or Dilbit the Gulf Coast refineries are set up via their fluidic catalysts for heavy sour crudes specifically Saudi sour and Venezuela or Canadian synbit. West Texas can and will fill the void for the right price and that price is $60 bbl or more for WTI crude. The refineries will have to swap the catalysts and they have resisted that due to cheap heavy crudes from Saudi, Venezuela and Canada. It’s a huge win for West Texas that keyston is canceled it means 800k plus of demand right next door on the Gulf Coast.