Oil market prices show just how much supply is out there, says Sankey Research’s Paul Sankey

    Paul Sankey, Sankey Research president, joins ‘Power Lunch’ to discuss the tensions between the U.S. and Venezuela and the impact to energy markets.

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    4. USA needs 20.25 million barrels per day and rising just to function as a country. They only produce 13.2 million per day. Approx. 4.9 million barrels a day comes from Alberta and that number is growing rapidly.

      The reason the " Shale Revolution" of the early 2000's was so important is a response to the continued decline in production rates of conventional wells in the lower 48. Now 25 years later and Shale wells are drying up faster then Companies can find them. Offshore drilling is hit and miss and a costly operational regulations and insurance nightmare. Meanwhile the domestic need for oil continues to grow, and the wells in the lower 48 are producing less and less.

      Your only other option of "easy to get oil" from US soil is shipping crude via tankers from Alaska because the pipelines from there to the lower 48 don't exist.. And would have to run through multiple Canadian provinces if they did exist. Only 3 small refineries are in Alaska . (Not even 30% of what the US needs in refined barrels per day just for domestic use).

      So some how you need to find and produce 4x more Alaska crude , then ship it to the Midwest or Texas for refining. In which the infrastructure from ports on the west coast to refineries in the Midwest and Texas don't exist.

      Another option build more refineries up there in Alaska proper. The USA would need to invest hundreds of Billions in AK Infrastructure and at least 4x the state's output just to secure domestic oil needs. Not even to become a global oil exporter. and this would be a massive multi decade project. Which would need Canadian cooperation to be viable via pipelines crossing Canada whether or not its crude or refined product. Tankers are more costly and more risky trying to transport millions of barrels a day out of the Gulf of Alaska through North Pacific, South Pacific , the Panama canal, Caribbean Sea into the Gulf of Mexico to Houston's refineries would be unfeasible.

      The US being a dominate player in Oil exports is a joke with the infrastructure and wells they currently possess. Without the Canadian oil inputs they don't even have the capacity to run their own country and that metric gets worse year over year.

      Or you could just invade Venezuela with the guns you already have, act like a bunch of pirates on the high seas becoming the middlemen of Venezuelan oil, just a short hop skip and a jump from refineries in Texas

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