|
We passed Peak light sweet crude a year ago. That means we have used more of it than what is left in the ground. The Saudi's are not increasing their output for one simple reason - they can't.
This explains everything that is happening right now. The news media is talking about how the US is having refining problems - that is true and untrue at the same time. If there was an ample supply of light sweet oil, there would not be a refining issue.
The US refiners are however trying to add equipment like mad to be able to refine heavy and sour grades of oil. The equipment is very expensive and cannot produce like a refinery running on LS feedstock.
Sour oil is high in sulfur and produces sulfuric acid during production it destroys equipment the faster you run the process. The harder you run these refineries the more fires and accidents you are going to have.
|