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View Full Version : How addicted is the U.S.?


BailOut
11-29-2007, 09:27 AM
During the 3rd quarter, the pipeline had carried around 1.5 million bpd of Canadian crude, about 15 percent of U.S. imports (http://www.reuters.com/article/topNews/idUSN2865270520071129)

http://www.cleanmpg.com/photos/data/501/refinery2.jpgErwin Seba and Randy Fabi – Reuters – Nov. 29, 2007

Nowhere in the 3 page article I linked above is a mention of conservation. The same goes for the BBC's coverage of the story. (http://news.bbc.co.uk/2/hi/business/7118323.stm) -- Ed.

HOUSTON/LONDON (Reuters) - An explosion crippled the biggest pipeline supplying Canadian crude to U.S. Midwest refineries, shutting off more than 1 million barrels per day of imports to the world's biggest consumer.

The cause of the explosion on the Enbridge Pipeline system Wednesday that killed two employees was not immediately known.
U.S. crude oil prices Thursday vaulted more than $4 to just over $95 per barrel in early trading.

Crude later eased to near $93 after news the main fire had been put out and that two of four connected lines had restarted. But analysts were still worried about the impact on supplies ahead of peak winter demand.

"The timing is pretty bad. We are coming to the strongest demand period for crude with the approach of the northern winter," said Mark Pervan of ANZ… http://www.reuters.com/article/topNews/idUSN2865270520071129

Chuck
11-29-2007, 10:18 AM
15% of our imports shut down for less than a day due to a fire in Canada, then come back at around 50% of what they were (leaving us around 7.5% shy). This is enough for analysts to start predicting Strategic Petroleum Reserve (SPR) releases, an increase in OPEC production and a promise from other oil producing parts of the world to pick up the slack.

In other words a temporary 7.5% drop in imports occurs, which reflects roughly 4% of our total daily oil gains, and the the "emergency oil services" start kicking in.

Right Lane Cruiser
11-29-2007, 10:24 AM
Hm. Things could get tight around here quicker than planned.

Oddly enough I was just looking at used Insights, Echos, and Yarii this morning. :(



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