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To: gandalftb
The refineries need to be built near where the oil is drilled

No, refineries produce multiple products. They need to be more centered where the products are consumed, either industrial facilities or distribution networks.

it's oil will be much less competitive as crude is expensive to ship

Why do you think it is cheaper to separately ship: gasoline, Aviation Gasoline, diesel, kerosene, Jet Fuel, residual fuel oil, Ethane, Ethylene, Propane, Propylene, Butane, Butylene, Isobutane, Isobutylene, Lubricants, Waxes, Petroleum Coke, Asphalt and Road Oil as compared to Crude Oil? Modern refineries produce all of these and also need inputs of methane, natural gas liquids, hydrogen and others.

38 posted on 08/15/2008 8:26:33 AM PDT by thackney (life is fragile, handle with prayer)
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To: thackney
Good point, general (sweet crude) refineries do so and are needed at the point of use, close to its consumer.

Heavy crude processing refineries are needed near the sources to do a rough breakdown so that sweet crude and heavy crude are separated. The problem is cheaply separating out the sulphur in pumped crude.

Each type has a different consumer/usage and value, and needs to go to different locations more efficiently. Road and roof tar have a different distribution system than gasoline and vehicle oils.

If we had offshore oil, fed by pipeline, to on-shore heavy crude refinery processing, then to multi-fuel refineries as you named, all distributed by our domestic oil companies, we would have the most competitive system.

That would keep our wealth here, that could be taxed for alternative fuel development.

If we could solve the sulphur problem, our coal, oil-shale, and tar-sand would make us completely energy independent in a few years at best.

39 posted on 08/15/2008 8:42:25 AM PDT by gandalftb ("War educates the senses" (Emerson))
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