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andris
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 Posted: Tue Dec 07, 2004 5:49 pm Post subject: closing refineries in US |
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Can somebody offer me an explanation please.
I have heard that Shell is planning/has to close a profitable and efficient refinery in California.
Does not this play into the hands of the "peak-oil is a myth" camp as they say that Shell is just manipulating the economy/market that then "creates" the illusion of peak oil and associated shortages.
Is there a rational reason for Shells proposal?
thanks...Andy |
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pilferage
Intermediate Crude
Joined: Nov 21, 2004
Posts: 579
Location: ~170ft/lbs@0rpm (on my bike)
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| Posted: Tue Dec 07, 2004 6:35 pm Post subject: |
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Not enough supplies for the future?
Excerpt from your referenced article:
"We concluded there is simple not enough crude supply to ensure the viability of the refinery in the long term," Farid said
Doesn't this prove peak oil is "accepted" by the oil majors?
cheers..... |
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pilferage
Intermediate Crude
Joined: Nov 21, 2004
Posts: 579
Location: ~170ft/lbs@0rpm (on my bike)
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| Posted: Tue Dec 07, 2004 6:39 pm Post subject: |
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I don't know enough of our oil infrastructure to give a concrete reply, but consider that this could be endemic of our own declining oil supply, or depending on how much we refine from our overseas imports, an indication that our world supply is in fact starting to slide downward.
Or maybe the geographical location of the refinery makes it very inefficient to run? |
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TWilliam
Light Sweet Crude
Joined: Nov 28, 2004
Posts: 1750
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| Posted: Tue Dec 07, 2004 6:45 pm Post subject: |
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| Quote: |
ChevronTexaco is the largest producer in the Kern River field, using steam injection wells to extract 100,000 barrels day. Still, the field's production is declining, according to state statistics, from 48.7 million barrels in 1998 to an estimated 38.8 million barrels in 2002. |
Seems pretty obvious to me. I'd say that, given a +20% decline in locally available resource in a four year period, bagging it is a fiscally sound strategy for any company seeking to remain profitable (at least as long as it can)... |
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Dvanharn
Heavy Crude
Joined: May 20, 2004
Posts: 235
Location: Sonoma County, Northern California
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| Posted: Tue Dec 07, 2004 6:45 pm Post subject: eports: 2 suitors for Shell refinery |
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| Quote: | Friday October 29th, 2004
Persistent rumors that the Shell Bakersfield Refinery on Rosedale Highway could soon sell bubbled to the surface again on Friday.
The Oil Price Information Service reported two buyers have emerged as serious bidders for the plant.
OPIS said it could eliminate several candidates, including Valero and most majors. One bidder is a niche refiner, although OPIS reported it could not confirm the company's identity.
"The other interest is reportedly coming from a large multi-billion dollar East Coast private equity fund," the OPIS report said. "This buyer is reputed to be a dark-horse candidate and there are still concerns that Shell will still stick to terms that make it difficult for anyone to buy the plant."
Shell has been criticized for not including a storage terminal adjacent to the refinery and pipelines that serve the refinery in the sale. |
bakersfield.com article on the potential Shell refinery closing
Shell was to close October 31 because they could not meet EPA air pollution requirements for 2005, but they have apparently been givin permission to operate through the spring of 2005.
The refinery supplies 2% of the gas, and 6% of the diesel fuel in California. Closure would jack up retail prices. The EPA mandate for very low sulfur diesel in 2006 may have been an issue because of costly upgrading requirements, but I have not seen it discussed.
Dave |
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trespam
Light Sweet Crude
Joined: Aug 10, 2004
Posts: 1104
Location: San Diego, CA, USA
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| Posted: Tue Dec 07, 2004 8:13 pm Post subject: |
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| Also take into account that the Mideast has been aggressively pursuing their own refining capabilities. Though they continue to sell crude, they realized that the didn't need to give up on value added refining. So over time we've seen the crude supplies in the US decline, then we imported crude and passed through our refineries, and now the oil producers have gotten smart and realized that they can use crude oil money to build refineries to produce gas, diesel, petrochemical feedstocks, and other items. |
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savethehumans
Light Sweet Crude
Joined: Oct 20, 2004
Posts: 1541
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| Posted: Tue Dec 07, 2004 11:52 pm Post subject: |
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In other words, what would a woodchuck chuck if a woodchuck couldn't chuck wood? 
(Maybe Shell could restructure, and help Suzie gather seashells by the seashore!) |
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