this post was submitted on 24 Jan 2025
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Don't they have to rework their refineries in order to replace Canadian oil? Instead the refineries currently working with Canadian oil are specifically built to process dillbit, due to having been built to use Venezuelan dillbit originally.
That and Canadian oil sells at a discount. Cut off the largest foreign oil supply and replace it with domestic oil that sells at full price, all while every trader knows you are buying up all the excess oil to refill the strategic reserve, and hooo boy are gas prices going to go up.
Thats a conservative talking point.
Dilbit sells for crap all because its crap quality.
What's a conservative talking point? That WCS sells for less than WTI? That's not at all a political statement, that's just a fact.
It is a political statement when the problem is framed as one of market access.
The problem is not market access. The problem is that WCS is very high density and very high sulphur content. Those result in it always selling at a severe discount to WTI.
Oh yes I didn't mean to deny the point on housing.
Who knew it was all so complicated? /s
Also pipelines. sure there is enough oil but canada has a pipeline to minnesota so canadan oil is what they use. North dakota oil does go through minnesota but to a different refinery someplace east that can use it.
I know that Trump plans to "drill baby drill" but realistically they don't need to replace our oil at all; if they lost our supply entirely it'd just make their gas a bit more expensive. They already have a surplus.