Saturday, March 09, 2013
The bitumen bubble is a term invented by the Conservatives in an attempt to cover the fact all their Conventional oil production is also discounted at the same rate! Alberta producers robbed of billions.
Crude oil derived from Bitumen is allowed to keep its "dirty" reputation as it serves to justify the huge unnecessary discounts on the product.
Cheap oil? Yes! The Conservatives have been discounting oil by 30% for more than 15 years. Hundreds of Billions lost to Alberta!
To make crude from Bitumen they must first know what the end product must look like. Once established they can make the crude. The crude oil from the tar sands is darker in color (carbon).
It is fortified (thinned) with Natural Gas from the High Level region. You may recall the Government shutting that regions oil in 5 years ago? No one knows how much compensation was paid to the producers (taxpayer pays).
The API or pouring temperate of oil sets it's mark Standard crude has an API of about 19 degrees. Crude made from the Tar Sands has an API of no less than 9 degrees, probably much more. It travels in the same pipelines as the Conventional crude.
If the customers in the US wanted an API 19 degree oil; they simply ask for it and more gas will go into the mix. That would mean they would have too much HVB and LVB (Naptha) and probably have to store it.
The Tar Sands crude oil is clean! It is environmentally safe! It has the sulphur and metals removed from it which, you cannot say about conventional oil! This crude floats on water! The only way it will kill fish is if some brainiac uses solvents and chemicals to disperse an oil spill that is harmless but unsightly!
Yes it takes heat and energy to do this but with the price of gas at 3.00 and expected to drop from there; its a sweet deal.
What is wrong is the Conservative Government following Republican policies. And, the Wild Rose in waiting; conceived and born of the LDS church in southern Alberta totally indoctrinated into the US Republican way.
The carbon footprint of the operation is 1/10,000 th or less of China's and somewhere in that region for the US! I can live with it.
Doing hatchet jobs on the industry to wave some populace environmental flag serves no one.