Quote:
Originally Posted by Allan83
Remember that other sources have other additional costs. The US spent $1 trillion on the Iraq war, for example, and who knows how much they spend to maintain all their military bases in the Middle East. Those bases aren’t exclusively there for the purpose of controlling the oil in the region, but that’s a large part of the reason. And China is now dependent on places like Angola for its oil, which can’t make them feel too secure. Canadian oil offers many benefits, which is why both the US and China want to buy our oil instead of the oil they’re currently importing.
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Interesting point, but keep in mind that oil cos don't pay for any of that nonsense, so it doesn't factor into their cost/barrel at all. That's just the federal govt. doing them a solid I guess... keeps those campaign contributions flowing for sure.
Canadian oil offers a certain security, no doubt, but in the end the dollar always reigns king and when exxon has to shut down/hold projects due to demand shocks you can bet their prime analysis will be one of profitability.
Quote:
Originally Posted by VIce
The complete opposite is equally true, though. Fuel oil represents half of all oil revenues (typically the heavier grades). Chemicals represent half of all oil revenues (typically the lighter grades).
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I have a tough time believing that the energy sector only accounts for half of crude demand, but like I said I'm not an expert on the subject.