Quote:
Originally Posted by MalcolmTucker
Refining is an awful business (lots of excess worldwide capacity, hyper competitive, where integrated players have incentives to squeeze others out) where Canada has no comparative advantage, and game theory works out that most nations would prefer to build their own than tie into someone else's (since then they can access the fairly liquid market for crude instead of products, instead of being tied to ours).
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Totally agree. Something akin to 3 proposed refineries on BC`s NW coast right now. Frankly, don`t pay any attention to same. Just promoters without any expertise in same, no financial pockets, no energy major involved, etc.
The last refinery built in North America was in Alberta back in the early 1980`s IIRC. For an obvious reason.
Oil, of any grade, is typically sold to a refinery. And those refineries are situate near, or in close proximity to, major population centres.
These NW BC refinery proposals are just major pipe dreams. That`s all. Not worth their weight in salt.