Quote:
Originally Posted by bill_daniels
It is shitty, heavy crude, so it will sell for less than our light sweet crude we produce in Texas, for example. And pumping it in a pipeline is a lot more cost effective than bringing up shitty heavy crude from the Orinoco basin in Venezuela, for example.
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This is correct. But like I said, a full explanation is beyond the scope of a message board post, so I didn't want to even dip my toe in the water of sweet versus sour crude, or any of the dozens of other variables that impact the price of a barrel of oil, and have even a greater impact on the cost of gallon of gasoline that a consumer pays in Bum**** Idaho. But suffice it to say, ANY restriction of trade in the energy market has only one impact on end-use prices: it increases them.