Europe is a continent.
Lol as if that needed an explanation.
The only difference between now and 8 months from now, is that, their refineries will come a halt, whereas refineries from other countries, like India, will be churning out refined products non-stop, and getting paid higher margin by the same European.
The bottom line is this: the world can't magically increase crude oil production by 2M plus barrels a day - that is 730M barrels a year.
You need to spend hundreds of billions of dollars in new investments to extract additional 2m barrels a day.
Have a look at STO which is about to spend $4.5 billion dollars to drill and then extract circa 100,000 barrels a day at Dorado - oh, yeah, first oil will be 2026. That is the kind of money and timeframe you need to look at, when you are talking about Oil and Gas.
The kind of volume they (European) are looking at replacing is just NOT possible within 8 months. They may be able to plug the gap by tapping into strategic reserves, but that is NOT a long term solution.
What will happen will be slight of hand tricks, where they turn a blind eye to mixed crude and mixed refined products.
Expand
