Why the U.S. Can’t Use the Oil It Produces 

Exactly right. I just replied to a user above who erroneously said it was more expensive to import crude. As you mentioned, US refineries are designed for the heavy crude, and heavy crude is sold at a discount in the international market.

It's also a case of its near(ish) to a lot of heavy crudes to the south. It's funny, because where I'm from (Australia) there is just loads of gas and LPG.

Thicker oil have longer chain hydrocarbons, correct? Aren't they better fort making plastics and lubricants?

@@maxheadrom3088 @maxheadrom3088 Correct. I think it has been touched on somewhere in this comments section.

Sounds like chocolate to me.

This is the correct answer!

LTO aka shale oil is unconventional. So it's about Real crude vs LTO

Gasoline and propane also butane. Popular fuel from Car to cookout grilling also butane for lighter to ignition. From light brown crude oil in America.

Is also because lots of us refineries are set up to refine heavy crudes not light crude like WTI

the refineries i worked out said they only get 1/3 gasoline and 1/3 diesel or number 2 fuel oil and everything else from tar to butane is the remainder, so they take a lot of the diesel and run it through crackers to make it into gasoline.

You are absolutely right ,firstly I believe money in the bank is not money because it is bond to inflation and losses values overtime, You have to be well disciplined to achieve success and save before you spend Lastly success does not happen overnight it takes time, dedication and self discipline

money is a liability, not an asset. You have to exchange it for assets that represent real VALUE. Real estate - properties for rent. Stocks (dividends). Bonds (interest), funds, REITs (interest), intellectual property, The aid of an institutional or basic financial advisor's cannot be over expressed. I started saving and investing in 1989 at the age of 20... I am 54 today and have 2.2 million in my retirement account, 135k liquid and I trade securities with 50-55k

I'm bombarded with the don't sit on it during the inflation, I wanted to jump in 8/22 and did nothing. So far this year I think I need to get my feet wet but I stopped listening and taking financial advise from RU-vidrs, because at the end of the day, I end up with a bunch of confusing stories. Have you always had guidance?

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abiogenesis?

All those things can be produced without oil. Oil has just been the easiest way. As the bottom falls out of the fossil fuel market oil may not remain the easiest and cheapest source.

Elemental sulfur is probably the most important usage, with over 90% of sulfur supply coming from the desulfurization process. Where would we be witthout the "king chemical" sulfuric acid.

@@ronvandereerden4714 The primary ingredient in tyres is oil. Think asphalt shingles on house roofs, waterproofing materials in construction, plastics, some pharmaceuticals etc . We will always need oil.

Feed stock for Plastics - and no "ronvendereerder4714" Oil can NOT easily be replaced for that usage, even by Coal which is the next best option.

Twenty years ago the head of the International Energy Agency, a UN agency, was in my office talking to a Saudi official. He said, "Petroleum is such useful stuff. You can make plastics, drugs, all kinds of stuff out of it. And do you know what we do with most of it? We burn it up."

Cracking hydrocarbon chains into different lengths is all they are doing, gasoline, diesel, kerosene, jet fuel, and plastics creation are all from the same oil

I agree. My first job when I left school in the 1960s was working in a UK oil refinery and the first area I worked on what what we called Products Blending where we mixed different types of petroleum (crude) from various parts of the world to get the optimum output for the market. I remember that the Saudi crude for instance, was so viscus it had to be heated with steam before it could be moved along pipelines whereas other crudes could be as thin as lubricating oil. But the one factor that always seems absent from the "stop drilling oil" advocates is plastic and the world's total reliance on it. I'm not talking about plastic bags but electrical insulation plastics. Stop pumping crude oil and there's no more plastic insulation because its made from crude oil and that means no electricity, none, anywhere, from any source. No electricity means not only no communications but no water, no modern drugs, no food, no commercial transport, etc, etc. The world's population, at least the very few that survived, would revert to the pre industrial era. Stop pumping crude oil and global warming becomes just a minor inconvenience.

Substitute won't for can't.

@@petemulhearn7787 It's amazing how short sighted most people are. I'm probably a bit younger than you, but I can still remember the time when absolutely everything wasn't made of plastics.

​@kingofnothing2260 only real difference is cost of refining the different types of oil example heavy or light refining bitumen is cost and water consuming but yes not much difference in the carbon chain fracking produces lots of condensate very volatile fluid good for military weapons jet fuel

We want nuclear power! I need these nuka boys to give me a fusion reactor to power my Time Machine!

That’s not gonna happen. On PA, there is a plant nearby that has two towers, they deactivated one and looking to shutdown the 2nd one. Nuclear is not profitable.

Nuclear plants aren't really a solution

@@warponoob3315 Yes they are. The technology is there, the fuel is there. There is no other option that can handle the unprecedented demands of electricity that we have today.

Lmao right?

Hey Luke! Thanks for pointing this out. You're correct that the Jones Act impacts why the US can't easily ship oil from places like Texas to different parts of the country without a pipeline. This isn't the only reason oil is swapped with other countries-as outlined in the video-but the limitations on shipments between American ports are yet another economic reason to import oil. Quite frankly, I meant to include this in the video, but I missed this point. To hopefully pick up this slack a little bit, albeit in a comment, here's some info on the Jones Act for those interested: The Jones Act is a US federal law from 1920 that requires goods shipped between two American ports (e.g. Texas to California) to be shipped on an American built, owned, and operated vessel. (Interestingly, the ship at the beginning of the video is one such ship called the "Texas Voyager" which is Jones Act compliant.) This rule, intended to protect domestic shipping interests, effectively limits the competition on these trade routes, which can lead to higher costs. Evidently, it's not always too expensive to comply, as some oil tankers do, in fact, move between American ports. But sometimes this extra cost can make the difference. So, as I mentioned in the video, oil refiners generally will take the cheaper option, and the Jones Act is one more reason it can be more expensive to use American oil. I hope this helps, and my apologies for not including it in the main video! - Nathan

@@kuczgreat reply. you should consider doing a video on the Jones Act, raising awareness to the economic problems its causing.

left out zionist organized crime controls oil and gas in the usa ,except for tex.

Gotta protect those overpriced unions

Gotta export all jobs to the lowest foreign bidder? @@gregallen7045

The "strawberry and chocolate" bit was fine for kids 10 and under... but really... "light" and "heavy" oils and their relevance to refineries can be quite easily explained.

@@maxhugenchocolate covered strawberries

EIA Annual Energy Outlook sees production of crude oil and distillates remaining at current levels (around 12-13 mmbd) through 2050. Even that seems very optimistic.

​@maxhugen There's more than just heavy and light oil. There's also sour and sweet oil. Some refineries use a blend of oils to get a mixture they can process. Some refineries can only process sweet oil and others can process both sweet and sour. Those refineries are more complex. Marathon refinery in Texas City is an example of a very complex refinery.

You know I guess he is just trying to white wash shale oil and it’s very sour if I m not wrong which results in higher corrosion of vessels and lines also it’s highly polluting in comparison to sweet crude. It just feels like another propaganda news piece from shale oil lobby

A new cancer valley lets go

@@legendaryz_ch Illinois refused to allow new refinery there a few years ago...

@@legendaryz_ch Cold and heat kill much faster than cancer.

Can they build one in your back yard?

I agree but that COST!! Doing some research I read it can cost from $5 to 15 billion dollars. And that is just one!

Called catalytic cracking of the heavier crude. Main issue is sulfur content for refineries.

Process the oil to lighter one have been there for ages, you don’t call it tech!

@@vickclash7955 Very high tech. Chemical engineering tech. Involves PT relations and catalysts.

@@vickclash7955 "Tech" is simply something man-made that we use to create something that otherwise wouldn't exist. It has nothing to do with how new or innovative it is. It's short for technology.

That idea was covered... The U.S. doesn't currently really have such, and political is against investing in creating those different refineries. Am I mistaken?

US Crude is generally better.

​@@mynameisgladiator1933 No it's not.

@@mynameisgladiator1933 Crude oil is crude oil my dude, no matter where it's drilled🤣

​@j4genius961 I thought there was a high-quality crude oil called " sweet crude oil 🛢." What is that all about???

@@j4genius961That is not true at all.

John Hoffmeister, ex-Shell oil CEO, said that the "gas crises" in America were a result of American drivers insisting filling their gas tanks more often in face of supply disruptions -- that the problems were mostly caused by hoarding.

I remember that. The radical environmentalists had infiltrated the government and were running a test to see if they could convince the public that traditional American cars are "bad" and small foreign cars are the Savior of the world, and they are totally indifferent as to the jobs they destroyed.

damn that's an interesting tidbit.

In fact, 'condensate', which is a naphtha product derived from natural gas, is mixed with heavy tar sand crude at 35% (two parts crude, one part diluent) to make it 'pumpable'. The resulting blend is called 'dilbit' or diluted bitumin. To my knowledge, all condensate is Canadian. We ship 95% of all dilbit to the U.S. because Canada never invested in the refining technology needed to deal with heavy bitumin.

@@paulmaxwell8851 Naphtha!....that's the light oil I was trying to think of when I made my comment but was having a brain fart at the time .😄 Thank you for your input on this subject! It's interesting that we in Canada have all the necessary additives to refine our own crude for transport through pipeline to out own refineries but we don't refine enough of our own to have cheaper fuel, one main reason being that we have the world superpower to our south that would get pretty pissed off if we stopped pumping enough crude to their refineries in the south to sustain their needs, and we don't have the military capacity to stand our ground if we get on the bad side of the U.S.

Americans should be buying from Canadians our little brothers instead of people half way around the world who hate both of us

@@oadkato bad it’s not true 🤷‍♂️

I spent 8 yrs in north dakota hauling oil and working on neighbors rigs I made some Good money. I miss the money.

The old pumpers called natural gas condensate "drip" It would run a gas engine, but if didn't add some oil it would lock an engine up.

@@neonjoe6180 yeah--the drips condensed inside the top of cold steel pipelines- Not much for "oil" but it sure blows up easy {Lac Magantic, Quebec}-

So you are saying that it is more a Political Question than a Practical one. Yeah, Nobody can deal with California, It should just be DELETED from the American number of States, and Go back to 49 States, Because they are not worth the Problems Involved.

A simple clarification on the Jones Act. It simply starts that foreign ships cannot transfer anything from 1 US port to another US port. This law needs to be abridged to allow the use of foreign-flagged ships to carry US goods within the US waterways when needed.

Thank you, well stated

Excellent! Thank YOU !

Why should there be government funds (your money) for private profit companies, especially gigantic profit companies? F them if they can't compete. That's how capitalism works.

SWEET!

> " They never tell us about the real problems " Funny thing about our media, eh...

Wow thanks for the info

..and then there's those pesky wars , going on. Humbly repent and know Jesus everyone, His shed blood payed the price of sin, is the only way to God and eternity in heaven.

If one is going to refine Canadian tar and Venezuelan heavy crude. In addition, most refineries go 1 -2 years between process turnarounds so citing the orignal data of construction is quite misleading

And like everything else in the U.S. profits supersede everything including our security, and survival as a nation.

Thanks for the clarification, JohnMills.

why were no new refineries built since the 1970s?

the whole research behind the video seems dubious, e.g. why would you show Oman as a significant oil producer and omit Kuwait in the graph at 0:45 when Kuwait produces 20x as much...

It's as if these millennials get fractured, half truths from Google and make these "as a matter of fact" videos like they're experts

The American refineries are good for sour oil, which Venezuela also has.

The Alaskan oil refinery was in North Pole which was the town that I grew up in and I remember that almost everyone's father at school used to work for the Oil refinery or was in the Military. One of my friends dad was a Cobra Helicopter pilot and he used to fly overhead many times. Fun place to grow up and we never had the oil crisis of the late 70s and early 80s because of the oil refinery.

Albeit most inefficient.

Source? Only one I saw got shut down recently was because of COVID demand issues.

Dang 😂 What is wrong with American politicians??? I thought African and Banana Republics were bad. American politicians have gone ROGUE. Take for example $94 billion dollars to ISRAEL 🇮🇱 and UKRAINE 🇺🇦. Most Americans don't agree but the politicians from both parties are pushing it. Even those opposing it are doing so out of pretext to appear they care about the borders. Even those congressmen who outrighly oppose the International aid may be the "controlled opposition ". They are there to make the population feel at ease that the system works. 😅😅😅😅😅

these people do not realize they are burning Russian oil in their cars in commiefornia ..oil from Russia -to India/refined-shipped to commiefornia

@@strawdemindset greasy gruesome newsom has been systematically closing down oil production refining and any industry that uses chemicals like the chrome plating industry since he got in office to thye point that Chevron is leaving the state it's home state

​​@@snapon666Excellent! It's about time we weaned ourselves off these toxic and destructive industries. If humanity survives it will have to reset from these dead end technologies, which only destroy the environment and peoples health.

Someone who understands that EVERYTHING is priced on the cost of oil.

Thanks for that; I think in Texas, some oil is sweet, and other is sour....

I remember it also. I just got my drivers license and then shortly we had the odd/even gas plan. You could only buy the very expensive gas on the day your plate matched odd or even. I remember friends and I were trying to figure out a way to siphon gas from the station's underground tanks. Oil independence is nice. But you only got what you got. So using it wisely is important. In WW2, US had a big advantage over Germany and Japan thanks to Texas oil which those two countries could not match. Probably going to be another troubled time when having the right resources will give the advantage. Maybe it'll be the US again. Maybe not.

EVs will phase out oil whether you like it or not.

Electric cars will reduce oil demand, maybe sharply, but you still need lubricants and some fuels. Not all of us want an electric car.

@@michaelbenardo5695 you will buy an EV and be happy.

@@michaelbenardo5695 you will own an EV and be happy

There you go POLITICS again.

Well politics is the deciding factor so how do you not address politics?

@@scottcarr3264 How exactly do we run our society and make decisions? Politics you say? 🤯Every major issue is drowning in politics. You can't ignore it unless you want to have the understanding of a child.

@@okgroomer1966 No shit. Without politics there wouldn't be a society, much less Democracy.

@@accuratealloys Truth! By "Politics" people mean "leftist politics"! Which means recession! The right is almost always "pro-drilling' pro-consumer, pro-family, pro-business!

Thank the EPA for that.

There is a refinery that does handle sour crude and that one is the Delaware City Refinery in Delaware. I have heard that there are a couple of other refineries that can.

I also thank the EPA for clean drinking water and air that you can’t see (see India and China).

Yep, the most scary words, "I'm from the government, and I'm here to help"!

@@stefanl5183 Indeed! Do not trust them, I don't.

Nearly all wars have always been about resources. What were they doing the past 6,000 years? It's bit of a stretch to say it's now an era of resource wars because "reasons".

There has been wars and fighting long before the 1990’s, since the ottomans were driven out and new lines were drawn by the allies. This is the real start of the mess. Most likely that article is very out of date. Techniques and me to odd improve with time and shale became much more abundant to the point of the USA still being oil neutral and being a leading exporter

You are really conflating correlation with causation with oil/gas being at the center of all the conflicts in that region. It also ignores ethnic tensions that have been there since forever

You can thank the Obiden admin and demorats for our current and future catastrophic problems. They were in charge and implemented the policies that are causing every major poblems in the US.

​@@Izokaytobewite Democratic results like a booming economy, increaing wages, inflation caused by the invasion started by Trump's bromance partner now brought down, necessary overdue work on infrastructure being done, investments in the move away from fossil fuels to reduce long term climate change while still having American oil production hitting record levels to deal with things now when the terrorist Russian state is an unreliable supplier of fossil fuels to the world and legislation to better secure the border if Trump and Johnson would stop blocking the legislation. And of course a huge change from the President Trump era when Trump spouted hate for non-white people, Immigrants and refugees and emboldened white supremacist groups thus making non-white people feel unsafe. So exactly which of these improvements do you hate and why do you hate improvements to the country?

#1 reason too many environmental laws about pipelines, refineries being built, & drilling .And forget oil companies want a shortage to keep prices higher for bigger profits

@@richardbergren6522 It’s a weird dynamic … oil and gas companies do want to keep prices high to make a profit (can’t say I blame them) but the supplies are so great that they can’t just buy up the supply and sit on it because they can’t …. So they turn to politics to make taping it illegal so no one else can do it till they change the laws in the future

Beginning to think oil companies like progressives because there are no real alternative energy sources and progressives like to keep energy costs higher than they need to be.

wow we could have ICE vehicles run on cheap domestic CNG/LNG then!

You should provide links to information proving that.

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We can already process everything we produce. The truth is it's about efficiency. Heavy crude makes more diesel, light crude makes more gasoline. That's the real reasons countries buy oil from each other. More efficient/profitable refining is attained by mixing to receive the highest quantity of the end product you want.

I was gonna mention the same. Buying oil from other countries makes those countries become dependent to the US. Also the Navy plays a big role as the world police for those trade routes

The petrol dollar is do to an agreement we made with Saudi Arabia. The only accept dollars for their oil and we make ourselves responsible for their security. Unfortunately, Saudi Arabia is now accepting payment in other currencies. The petrol dollar's days are numbered.

​@@henrylam92 🤡

Being reserve currency allows US to run its debt up without worrying about having the reserves to cover the costs. It’s amazing deal compared to what other countries have to do to manage their finances but it makes us very irresponsible!

I been trying to get more ppl to understand that

Please don't encourage him.

Cool Know Jesus God loves you

No that is the SPR, which was drained by the irresponsible one.

Yes, but these days it’s for Ukraine war lol our governments run by idiots and traitors

​@@churblefurblesdo you mean Joe Biden

Biden and ovomit both drained the oil reserves where president Trump filled them. The oil reserves are huge storage tanks

We’re going to need it soon

That’s certainly true of Bitcoin and a few others, who use proof of work to add blocks. However, most blockchains now use storage instead of computation or other methods to verify new blocks. Energy usage for those is less than 1% of what Bitcoin uses, and very comparable to bank’s electronic money systems.

That’s part of it.

And we export our resources for cheap money. What is your point.

I disagree. Nuclear is needed to run electric cars. If cars go electric other forms of energy will not be enough.

@@brucebarnes8138 I think the need to charge electric cars is a very little market for nuclear reactors. They just send baseload power to the grid.

Nuclear energy can provide the heat and hydrogen for oil refining, which would increase yield by 27%. Because we currently have to burn a portion of the oil residuals to get the heat and hydrogen for refining.

@brucebarnes8138 If we have electrified rail networks and public transportation, then the only thing that would need to use duel would be trucks and ships as people themselves would to taking trains. France in particular, runs basically everything off nuclear without much need for electric cars

US refineries can blend light sweet with heavy crude and easily process it. They make more money exporting the high quality US produced light sweet while we pay more at the pump. You’re being fooled.

Non permited ? When did that stop coorporate USA? TRY no good return on investment.

Simple change the rules, and build better infrastructures here at home. Not depending on foreign shipping, especially during these war times . National security issue. Be independent and self reliant as a free people. Simple.

Yeah, that has a lot to do with it, the EPA won’t let us build the refineries

@@chriauc2976 have you met the EPA? Those guys are personally dedicated to the destruction of all things commercial or capitalistic in the mindless pursuit of their environmental religion.. They worship trees, and would rather see a bare field of sagebrush and the occasional wildflower, than a plowed field producing agriculture, and feeding the world.

Ummm .. if Canada lets us. After all, it is their oil. You talk like Canadian oil reserves are property of the USA. Hilarious.

If you're losing 2 gallons thru Evaporation and Leaks, what kind of barrels are they using? This is hillarious. REALITY CHECK... They don't actually use barrels!

Deal with the radiation first

Yeah, that was LAST Century. Things have moved on. Since Nukes are flat-line, they cannot hit the Texas Summer Daytime Peak (Air Conditioning) and then at night, the Nukes (and old Coal) go surplus and worthless, making them not profitable. Meanwhile New Silicon Solar PV cost less than 1/10th of a New Nuke -- and produce during the Daytime (that Peak thing again), along with being much faster, cleaner and lower risk. So in THIS Century, Texas is now mostly building New Solar.

@johnjohn, ????? Frackers produce light sweet. What are you talking about? You’re defeating your own argument. We’re only producing around 13 million barrels of crude per day and the oil companies are exporting 3-4 million barrels per day of that. We consume over 16 million barrels of crude oil per day. Do the math. They want us to pay what Europeans pay for gasoline cause they make a boatload more profit. What’s happening is all BS, not America First, and they were doing the same under Trump.

Will you assist immune response against . We are being censored in Canada now please share Commissioners Report released in Ottawa: #nationalcitizensinquiry

Those were the good old days

Because we mismanaged COVID, had a lockdown, and tanked oil demand...

@@thamster71 who's we

it's idiotic what trudeau is doing. Alberta should just secede from canada. declare independence

Should we believe anything that Trudeau says?

With the rise of North Dakota crude, there are now trainload after trainload of crude in brand new tanker cars coming over the Cascades to the oil refineries in Anacortes, WA. This was lucky timing as crude from Alaska, brought in by ship has declined.

Those dastardly Canadians foil USA at every turn!

@@user-xq1wz3tp5z what foiling. We got their oil. What they wanted to do is have us process their dirty oil, and we get the blame for the Carbon emission. Canada screams environment, but they actually emits more CO2 per capita , than the US. We are just a larger nation.

With multiple wars brewing, only God can help us now

@@SuperReznative eh, most wars throughout history have been fought over religions. I think we're better off without any of that crap.

@@austinbandy5818 Religion is used but MONEY and Land/resources is behind all wars.

@@GiselleAdams there's the crusades. The Spanish Inquisition not to mention all the other hundreds of religions Christianity burned, murdered and raped out of existence. Land and resources are just an added benefit.

@@austinbandy5818 A world without wars is Utopia, itself. What then will happen to MIC when highly-paid experts will be out of business & the US standard of cost of living would plummet?