Several factors need to be taken into consideration, when selecting an ideal location for a crude oil refinery.
Firstly, when selecting an ideal location for a crude oil refinery, you have to consider the availability of the raw material: namely the crude oil to be refined. Ideally, the location should be close to the oil wells, or close to where imported crude oil lands at a sea port.
Secondly, when selecting an ideal location for a crude oil refinery, you have to consider the distance between the refinery and the market for refined oil products. If the targeted market is too far, you may have to invest heavily in pipelines or other forms of transport for the refined oil products.
Thirdly when selecting an ideal location for a crude oil refinery, you have to consider the availability of skilled labor to run the refinery.
Fourthly, when selecting an ideal location for a crude oil refinery, you have to consider the availability of support services. Those include banking services, to facilitate payments. Ideally, you should locate the crude oil refinery in a place where even online banking services can be accessed. If it is in a foreign country, the situation should still be such that you can make payments to the expatriate American staff using, say, the Bank of America EDD card. It should also be a place where the expatriate workers can continue to enjoy the basic comforts of living. That is ideally a place with reasonably good infrastructure, allowing the workers to continue cruising around in their Toyota, Nissan or Chrysler luxury vehicles.
The basic thesis of the crude awakening documentary is easy to understand. It is something to the effect that “we are likely to reach of a point of ‘peak production’ in crude oil extraction, at some point in the future”. And then that is likely to lead to a situation where we eventually run out of oil resources. Running out of oil resources would be a major crisis, unless we have come up with alternative sources of energy by then.
While many people have argued with that basic thesis of the crude awakening documentary, I am personally of the opinion that the scenario it paints is one that is more or less inevitable. We all agree that oil resources are finite, or don’t we? We also agree that the rate at which we are exploiting those oil resources is growing every day, don’t we? Then, given those facts, isn’t it plausible that a peak oil production level would soon or later be reached? And then, if the whole thing was taken further, isn’t it plausible to imagine a date when we actually run out of oil resources?
The folks at OPEC may, of course, find these ideas unpalatable, but we have to start thinking of a future away from oil. We have to think mostly in terms of renewable energy. That is unless someone can carry out some sort of research, and genuinely demonstrate that the oil resources we use are being replaced. But that will always be a tall order, especially given the fact that the oil deposits we are currently using are said to have accumulated over millions of years: meaning that we would presumably need millions of years to build replacement resources.