Why build a pipeline? Why can't we consume our own oil?

The oil sands produce roughly 1.7 million barrels per day. This is forecasted to expand.

Canada uses 2.2 million barrels per day.

Why can't we stop importing oil and consume our domestic supply?
Am I being overly simplistic about this?

I keep wondering the same thing…I think our refining capacity is part of the problem (i.e. we don't have any) and we would need a pipeline to get the oil from Northern AB to the areas of use.

As I understand it, the horrible shit that is extracted from the tar sands is particularly challenging to refine, and no refineries in Canada are equipped for it. Hence, it gets piped to the Gulf states for the refineries there to handle it.

Refineries are super expensive to build, and typically need to operate about 20+ years to make a profit.

So, someone has to just make the financial decision to do so …

Kn.

that and our new chinese overlords whom are buying up all our oilsands projects probably want 'their' oil for themselves………….

and no refineries in Canada are equipped for it.

You sure about that? What about Ft. Mac upgraders and "Refinery Row" in Strathcona (Edmonton, AB)?

there was an oil analyst type on the radio last week talking about the enbridge pipeline. He addressed the issue of refining oil in Canada vs. shipping raw bitumen overseas. The way he explained it, Sinopec (Chinese state owned oil company) significantly overpaid for the stake in purchased in Syncrude and other oil sands companys. That got this analyst guy curious. When he dug into the deals he found that part of the deal was, Sinopec was given a veto over where the bitumen could be refined. So, it sounds like even if somehow miraculously Canada could make decisions in its own national interest and try to move up the value added chain, we'd have to get the Chinese gov't to let us. Smrt.

Pretty comprehensive article in the Vancouver Sun last Feb about why it's not viable to refine bitumen in Canada.

Most of the oil refined in the "Oil Sands" turns into Synthetic Crude. It has to be further refined in the US or China to turn into Gas or Diesel.

Basically, to build a new refinery you need:

1. Large numbers of people who will work for peanuts
2. A place that you can pollute the hell out of with no pushback from locals or environmentalists (or else have laws that allow you to liquidate those who do)

I read that the one of the newer refineries being built in Kuwait has had cost overrruns and will probably end up costing $19 billion. Investing $19 billion dollars to process a limited resource that will eventually run out seems silly, IMHO. Money would be better spent on finding ways so that someday we won't need the oil the first place. Just a crazy thought.

So whilst the oil sands a well regulated the refining isn't. Surely it can't be that ethical to export the pollution elsewhere….

This is a bit short sighted consider we all exist inside a closed system.

Why don't we just build cars that run on oil sands? Hmmm? Problem solved, thank me later.

As I understand it, the horrible shit that is extracted from the tar sands is particularly challenging to refine, and no refineries in Canada are equipped for it.
Kn.

not really true. Syncude makes their fuel on site.

I love the electric car. Just plug it into the wall when you are done. Problem solved!

I love the electric car. Just plug it into the wall when you are done. Problem solved!

Exactly! And walls don't pollute at all. Saved!