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Unfortunately the Texas crude is being exported because the Texas refineries can't refine it. So imports of "blood oil" will continue.
by drjasonharrison 8y ago
Unfortunately the Texas crude is being exported because the Texas refineries can't refine it. So imports of "blood oil" will continue.
- remarkEon 8y agoWhat is stopping us from upgrading those refineries so that we can refine it? Is it simply not worth the investment?
- briandear 8y agoThis is completely incorrect. Many Texas and Louisiana refineries can process West Texas crude. And billions are being invested in expanding that capacity even further. Texas refineries, aside from light crude are primarily equipped to process Canadian and Gulf Coast petroleum, which is the majority of their production, far from “blood oil.” Here’s some background: https://www.houstonchronicle.com/business/energy/article/Refiners-investing-to-capitalize-on-flood-of-13408890.php https://www.houstonchronicle.com/business/energy/article/Ref... Ubtil 2016, it was illegal to export American crude. So the idea that West Texas Intermediate Crude is being exported because refineries can’t handle it is false, unless we are talking about the past two years: in 2014, where did all of that crude go? It was being refined. As the US is a net petroleum exporter, the idea that “blood oil” is a significant part of the American fuel supply is false. Canada exports dramatically more oil to the US than Saudi Arabia. The main reason that West Texas Intermediate trades at a discount wasn’t because of refining capacity, but because of the lack of pipelines to move the stuff.