The great oil paradox: Too many good crudes, not
The great oil paradox: Too many good crudes, not enough bad ones week will make processing and exporting crude far more difficult. American refiners
The South American producer exports some of the world’s heaviest oil and Trump administration sanctions announced this week will make processing and exporting crude far more difficult. American
The American Oil Paradox: Too Much Good Crude,
The American Oil Paradox: Too Much Good Crude, Not Enough Bad. Car drivers could even benefit, because too much light-sweet crude often leads to too much gasoline, and lower prices. On the
The great oil paradox: Too many good crudes, not enough bad ones Light-sweet crude from shale is in abundance but it's the heavy-sour from which refiners make their money
The Great Oil Paradox: Too Many Good Crudes, Not
Feb 1, 2025, by Javier Blas (Bloomberg) The shale boom has created a world awash with crude, putting a lid on prices and markedly reducing U.S. dependence on imported energy. But there’s a growing problem: America is producing the wrong kind of oil. Texas and other shale-rich states are spewing a gusher of high-quality crude Read moreThe Great Oil Paradox: Too Many Good Crudes, Not
by Javier Blas (Bloomberg) The shale boom has created a world awash with crude, putting a lid on prices and markedly reducing U.S. dependence on imported energy. But there’s a growing problem: America is producing the wrong kind of oil. Texas and other shale-rich states are spewing a gusher of high-quality crude — light-sweet in Read moreThe Great Oil Paradox: Too Many Good Crudes, Not
The Great Oil Paradox: Too Many Good Crudes, Not
Feb 1, 2025, by Javier Blas (Bloomberg) The shale boom has created a world awash with crude, putting a lid on prices and markedly reducing U.S. dependence on imported energy. But there’s a growing problem: America is producing the wrong kind of oil. Texas and other shale-rich states are spewing a gusher of high-quality crude Read moreThe Great Oil Paradox: Too Many Good Crudes, Not
The Great Oil Paradox: Too Many Good Crudes, Not Enough Bad Ones week will make processing and exporting crude far more difficult. American refiners are scrambling for alternative supplies at
The Great Oil Paradox: Too Many Good Crudes, Not
Feb 1, 2025, by Javier Blas (Bloomberg) The shale boom has created a world awash with crude, putting a lid on prices and markedly reducing U.S. dependence on imported energy. But there’s a growing problem: America is producing the wrong kind of oil. Texas and other shale-rich states are spewing a gusher of high-quality crude Read moreThe Great Oil Paradox: Too Many Good Crudes, Not
The Great Oil Paradox: Too Many Good Crudes, Not Enough Bad Ones week will make processing and exporting crude far more difficult. American refiners are scrambling for alternative supplies at
- Why is US oil so difficult to refine?
- It is believed that the answer can be derived from understanding the mechanics of the world oil market and the peculiarities of American crude. US oil production is mostly easy to refine but cannot be processed efficiently in many currently operating US refineries that were initially built several decades ago to process heavier foreign crude.
- Is crude oil a problem?
- Indeed, this is not just an economic problem; it is a story of misallocation and obsolescent capital. American crude oil contains little sulfur and is well suited to being turned into high-quality products.
- Why does the United States produce more oil than ever?
- The country today produces more oil than ever, yet this oil is often exported because of its characteristics and because of the capabilities of the domestic refineries. This apparent contradiction then has the USA dependent on imported heavy crude, despite it being the largest oil producer in the world.
- Why is the oil market so bad?
- Further, the global nature of the oil market makes the problem worse. It is a traded good, and American producers have been able to realize better returns after exporting LCCs to refineries that can handle this type of grade more efficiently.
- Why are 90% of crude oil imports heavier than shale crude?
- That is why 90% of crude oil imports into the United States are heavier than U.S.-produced shale crude. Because heavier crude is more difficult to process and requires refineries to make significant up-front investment costs, it tends to trade at a discount to light crude.
- Why did we invest in oil refineries before the shale boom?
- Long before the U.S. shale boom, when global production of light sweet crude oil was declining, we made significant investments in our refineries to process heavier, high-sulfur crude oils that were more widely available in the global market.
