{"id":16609,"date":"2016-01-18T11:01:04","date_gmt":"2016-01-18T16:01:04","guid":{"rendered":"http:\/\/olduvai.ca\/?p=16609"},"modified":"2016-01-18T11:01:04","modified_gmt":"2016-01-18T16:01:04","slug":"negative-oil-prices-arrive-koch-brothers-refinery-pays-0-50-for-north-dakota-crude","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=16609","title":{"rendered":"Negative Oil Prices Arrive: Koch Brothers’ Refinery “Pays” -$0.50 For North Dakota Crude"},"content":{"rendered":"

Negative Oil Prices Arrive: Koch Brothers’ Refinery “Pays” -$0.50 For North Dakota Crude<\/a><\/h3>\n
\n
\n

Do you have some extra space in your garage or attic? Or perhaps you own an oil tanker you aren\u2019t currently using. Or maybe you have a storage unit that\u2019s got a little extra room next to an old mattress and box springs.<\/p>\n

If so, you may want to call up oil producers in North Dakota and ask if they\u2019d care to send you some free oil, because the crude glut is now so acute that\u00a0the Koch brothers are actually\u00a0charging<\/em>\u00a0$0.50\/bbl to take low grade oil at their Flint Hills Resources refining arm.<\/strong><\/p>\n

\"\"<\/a>
\n<\/strong><\/p>\n

North Dakota Sour is a high-sulfur grade of crude and \u201cis a small portion of the state\u2019s production, with less than 15,000 barrels a day coming out of the ground,\u201d\u00a0Bloomberg notes<\/a>, citing John Auers, executive vice president at Turner Mason & Co. in Dallas. \u201cThe output has been dwarfed by low-sulfur crude from the Bakken shale formation in the western part of the state, which has grown to 1.1 million barrels a day in the past 10 years.\u201d<\/p>\n

High-sulfur grades are more expensive to refine and thus fetch lower prices at market. As Bloomberg goes on to note, \u201cEnbridge stopped allowing high-sulfur crudes on its pipeline out of North Dakota in 2011, forcing North Dakota Sour producers to rely on more expensive transport such as trucks and trains [and] the price for Canadian bitumen — the thick, sticky substance at the center of the heated debate over TransCanada Corp.\u2019s Keystone XL pipeline — fell to $8.35 last week, down from as much as $80 less than two years ago.\u201d<\/p>\n

\"\"<\/a><\/p>\n

So there you have it.\u00a0The global deflationary supply glut has now reached the point that the market is effectively forcing producers to\u00a0pay<\/em>\u00a0to give their oil away or else see it sit in bloated storage facilities until Riyadh decides enough is enough and until the world comes to terms with the return of Iranian supply.<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Negative Oil Prices Arrive: Koch Brothers’ Refinery “Pays” -$0.50 For North Dakota Crude Do you have some extra space in your garage or attic? Or perhaps you own an oil tanker you aren\u2019t currently using. Or maybe you have a storage unit that\u2019s got a little extra room next to an old mattress and box […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,3],"tags":[4333,3730,202,6335,588,10493,597,2826,4318],"class_list":["post-16609","post","type-post","status-publish","format-standard","hentry","category-economics","category-energy-2","tag-crude","tag-dallas-fed","tag-deflation","tag-koch-industries","tag-oil","tag-oil-refinery","tag-oil-supply-glut","tag-oklahoma","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/16609","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=16609"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/16609\/revisions"}],"predecessor-version":[{"id":16610,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/16609\/revisions\/16610"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=16609"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=16609"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=16609"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}