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103 comments on Refinery Utilization Rates and Increase in Use of Heavy/Sour Crudes

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TechGuy on June 29, 2007 - 6:34pm Permalink | Subthread | Parent | Comments top

>You will see that gravity in 2007 is almost the same as gravity in 2001. In fact, just eye-balling it I would say that the average in 2001 is a carbon copy of the average for 2007.

The EIA chart has to be wrong. The price spreads between Light and Heavy are tiny compared to the spreads back in 2004. I don't see how the demand for heavy has risen, while refineries statistic have remained unchanged. Valero was minting money before the spread collapsed. I suppose perhaps the figures may be escewed because of pre-refining upgrades. For instance, Oil produced from tar sands are upgraded before they are sent to refineries for production of consumer fuels.

Perhaps an insider from a refinery can set forward and provide some clarity.

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westexas on June 29, 2007 - 6:47pm Permalink | Subthread | Parent | Comments top

The most recent price data (late May, EIA) show a spread of about $12 between Brent and Maya heavy crude, versus about $6 in late May, 2004.

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TechGuy on June 29, 2007 - 8:39pm Permalink | Subthread | Parent | Comments top

>The most recent price data (late May, EIA) show a spread of about $12 between Brent and Maya heavy crude, versus about $6 in late May, 2004.

Thanks, I thought I had read somewhere that the spreads declined on increased demand, but I guess I was mistaken.

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103 comments on Refinery Utilization Rates and Increase in Use of Heavy/Sour Crudes

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