Energy East Economics

[DonAndersen]

Folks,

 

I've been pondering the Energy East pipeline and what it would cost to build and operate. The question is: with tar sands effluent at such a reduced price and with the pipeline tariff, would there be any money left for the producer?

 

Regards,

 

 

Don

[mikeo2]

Projects like that are ones that take years to build/complete so you can not use todays oil price. They will use their forecasters to see where oil may be in a few years to determine if projects like that should be built. Oil will be back up to at least $70 by the time EE would come on line.

[DonAndersen]

If the energy east is built, where will the price be set from.

The reason I ask is out gasoline prices are set in the Chicago Market. And whatever Alberta gasoline has do with Chicago baffles the crap putt me.

However, if the selling prices are set FOB Cushing, the resultant pipeline tarrif to the east cost will erode the value immensely.

 

Regards,

 

Don

[SilverDoctor]

Everyone seems to think that the crude oil industry is only to service gas for cars. There are other massive industries that are involved from Heating oil, the roads we drive on, the electronics we use, furniture we sit on and the clothes we wear. Plastics alone are a mainstay of our society.

[northfork]

Everyone seems to think that the crude oil industry is only to service gas for cars. There are other massive industries that are involved from Heating oil, the roads we drive on, the electronics we use, furniture we sit on and the clothes we wear. Plastics alone are a mainstay of our society.

 

Yes, not to mention all the other various petrochemical processing that comes from refinery/NG processing byproducts. There really isn't as much "waste" as some say there is, in the processing world at least. Hell even liquified sulfur is extracted from gases and used in various products and processes, such as fertilizer. Who'd have thought?!