Douglas A.

Grandt

PO Box 6603
Lincoln, NE 68506
(510) 432-1452
March 19, 2015

Senator Deb Fischer
United States Senate
383 Russell Senate Office Building

Washington, D.C. 20510

Re: Oil Refining - Considering future eventualities versus the myopia of the present
Dear Senator Fischer,
What is ENERGY INDEPENDENCE, really? With Saudi Arabia’s decision to keep the flow of
oil high to retain market share, they have hijacked the world with a flood of oil at reduced price,
some say with the explicit intention of destroying the economics of unconventional deposits of
shale oil and tarsands. Do they intend to extract all of their resources—before the end of oil?
The March 1, 2015 edition of Washinton Specter raises the issue squarely front and center:
Late 21st-century graduate students of business studying the growing problem of stranded
assets will almost certainly focus on the history of Canada’s Athabasca Oil Sand (aka tar
sands). The case studies they read will either describe the gradual abandonment of the
world’s largest reserve of bituminous crude or they will read about the tar sands’ miraculous
last-minute escape from becoming the world’s largest stranded asset. For either outcome,
the turning point they will look back on is just about now.
In some respects Alberta’s gigantic deposits of bitumen, a dense mixture of sand and heavy
crude oil, third in size only to the reserves of Saudi Arabia and Venezuela, were stranded
from the start by location. Situated in the heart of a vast boreal forest at the center of a very
large continent, they are hundreds of miles from the nearest refinery and thousands more
from navigable tidewater.
Of course, some of Alberta’s crude has made its way to market, but so much slower than it
could have, or was projected to, that producers, refiners, shippers, banks and other
investors in tar-sands development are beginning to wonder whether they have backed a
good play by investing over $160 billion to turn tar into oil.
So the economic stranding process has already begun. Five global energy giants—
Shell, Total, Suncor, Statoil and Occidental—have cut bait on major bitumen deposits in
Alberta, in which they had already invested billions. Suncor has just slashed another billion
dollars from its capital spending program and $800 million more from operating expenses.
And as oil prices slide lower, commercial and investment banks are reconsidering future
underwritings. An industry that recently envisioned doubling production over the next
20 years is now looking at something closer to the opposite, a halving of production
or worse in far fewer than 20 years.
Please ask refining CEOs and their Boards how they will behave as Corporate profits fail.
Sincerely yours,

Doug Grandt
answerthecall@mac.com

Douglas A. Grandt

PO Box 6603
Lincoln, NE 68506
(510) 432-1452
March 19, 2015

Senator Ben Sasse
United States Senate
B40E Dirksen Senate Office Building

Washington, D.C. 20510

Re: Oil Refining - Considering future eventualities versus the myopia of the present
Dear Senator Sasse,
What is ENERGY INDEPENDENCE, really? With Saudi Arabia’s decision to keep the flow of
oil high to retain market share, they have hijacked the world with a flood of oil at reduced price,
some say with the explicit intention of destroying the economics of unconventional deposits of
shale oil and tarsands. Do they intend to extract all of their resources—before the end of oil?
The March 1, 2015 edition of Washinton Specter raises the issue squarely front and center:
Late 21st-century graduate students of business studying the growing problem of stranded
assets will almost certainly focus on the history of Canada’s Athabasca Oil Sand (aka tar
sands). The case studies they read will either describe the gradual abandonment of the
world’s largest reserve of bituminous crude or they will read about the tar sands’ miraculous
last-minute escape from becoming the world’s largest stranded asset. For either outcome,
the turning point they will look back on is just about now.
In some respects Alberta’s gigantic deposits of bitumen, a dense mixture of sand and heavy
crude oil, third in size only to the reserves of Saudi Arabia and Venezuela, were stranded
from the start by location. Situated in the heart of a vast boreal forest at the center of a very
large continent, they are hundreds of miles from the nearest refinery and thousands more
from navigable tidewater.
Of course, some of Alberta’s crude has made its way to market, but so much slower than it
could have, or was projected to, that producers, refiners, shippers, banks and other
investors in tar-sands development are beginning to wonder whether they have backed a
good play by investing over $160 billion to turn tar into oil.
So the economic stranding process has already begun. Five global energy giants—
Shell, Total, Suncor, Statoil and Occidental—have cut bait on major bitumen deposits in
Alberta, in which they had already invested billions. Suncor has just slashed another billion
dollars from its capital spending program and $800 million more from operating expenses.
And as oil prices slide lower, commercial and investment banks are reconsidering future
underwritings. An industry that recently envisioned doubling production over the next
20 years is now looking at something closer to the opposite, a halving of production
or worse in far fewer than 20 years.
Please ask refining CEOs and their Boards how they will behave as Corporate profits fail.
Sincerely yours,

Doug Grandt
answerthecall@mac.com

Douglas A. Grandt

PO Box 6603
Lincoln, NE 68506
(510) 432-1452
March 19, 2015

Representative Jeff Fortenberry
United States House of Representatives
1514 Longworth House Office Building

Washington, D.C. 20510

Re: Oil Refining - Considering future eventualities versus the myopia of the present
Dear Representative Fortenberry,
What is ENERGY INDEPENDENCE, really? With Saudi Arabia’s decision to keep the flow of
oil high to retain market share, they have hijacked the world with a flood of oil at reduced price,
some say with the explicit intention of destroying the economics of unconventional deposits of
shale oil and tarsands. Do they intend to extract all of their resources—before the end of oil?
The March 1, 2015 edition of Washinton Specter raises the issue squarely front and center:
Late 21st-century graduate students of business studying the growing problem of stranded
assets will almost certainly focus on the history of Canada’s Athabasca Oil Sand (aka tar
sands). The case studies they read will either describe the gradual abandonment of the
world’s largest reserve of bituminous crude or they will read about the tar sands’ miraculous
last-minute escape from becoming the world’s largest stranded asset. For either outcome,
the turning point they will look back on is just about now.
In some respects Alberta’s gigantic deposits of bitumen, a dense mixture of sand and heavy
crude oil, third in size only to the reserves of Saudi Arabia and Venezuela, were stranded
from the start by location. Situated in the heart of a vast boreal forest at the center of a very
large continent, they are hundreds of miles from the nearest refinery and thousands more
from navigable tidewater.
Of course, some of Alberta’s crude has made its way to market, but so much slower than it
could have, or was projected to, that producers, refiners, shippers, banks and other
investors in tar-sands development are beginning to wonder whether they have backed a
good play by investing over $160 billion to turn tar into oil.
So the economic stranding process has already begun. Five global energy giants—
Shell, Total, Suncor, Statoil and Occidental—have cut bait on major bitumen deposits in
Alberta, in which they had already invested billions. Suncor has just slashed another billion
dollars from its capital spending program and $800 million more from operating expenses.
And as oil prices slide lower, commercial and investment banks are reconsidering future
underwritings. An industry that recently envisioned doubling production over the next
20 years is now looking at something closer to the opposite, a halving of production
or worse in far fewer than 20 years.
Please ask refining CEOs and their Boards how they will behave as Corporate profits fail.
Sincerely yours,

Doug Grandt
answerthecall@mac.com

Douglas A. Grandt

PO Box 6603
Lincoln, NE 68506
(510) 432-1452
March 19, 2015

Representative Adrian Smith

United States House of Representatives

2241 Rayburn House Office Building

Washington, D.C. 20510

Re: Oil Refining - Considering future eventualities versus the myopia of the present
Dear Representative Smith,
What is ENERGY INDEPENDENCE, really? With Saudi Arabia’s decision to keep the flow of
oil high to retain market share, they have hijacked the world with a flood of oil at reduced price,
some say with the explicit intention of destroying the economics of unconventional deposits of
shale oil and tarsands. Do they intend to extract all of their resources—before the end of oil?
The March 1, 2015 edition of Washinton Specter raises the issue squarely front and center:
Late 21st-century graduate students of business studying the growing problem of stranded
assets will almost certainly focus on the history of Canada’s Athabasca Oil Sand (aka tar
sands). The case studies they read will either describe the gradual abandonment of the
world’s largest reserve of bituminous crude or they will read about the tar sands’ miraculous
last-minute escape from becoming the world’s largest stranded asset. For either outcome,
the turning point they will look back on is just about now.
In some respects Alberta’s gigantic deposits of bitumen, a dense mixture of sand and heavy
crude oil, third in size only to the reserves of Saudi Arabia and Venezuela, were stranded
from the start by location. Situated in the heart of a vast boreal forest at the center of a very
large continent, they are hundreds of miles from the nearest refinery and thousands more
from navigable tidewater.
Of course, some of Alberta’s crude has made its way to market, but so much slower than it
could have, or was projected to, that producers, refiners, shippers, banks and other
investors in tar-sands development are beginning to wonder whether they have backed a
good play by investing over $160 billion to turn tar into oil.
So the economic stranding process has already begun. Five global energy giants—
Shell, Total, Suncor, Statoil and Occidental—have cut bait on major bitumen deposits in
Alberta, in which they had already invested billions. Suncor has just slashed another billion
dollars from its capital spending program and $800 million more from operating expenses.
And as oil prices slide lower, commercial and investment banks are reconsidering future
underwritings. An industry that recently envisioned doubling production over the next
20 years is now looking at something closer to the opposite, a halving of production
or worse in far fewer than 20 years.
Please ask refining CEOs and their Boards how they will behave as Corporate profits fail.
Sincerely yours,

Doug Grandt
answerthecall@mac.com

Douglas A. Grandt

PO Box 6603
Lincoln, NE 68506
(510) 432-1452
March 19, 2015

Representative Brad Ashford
United States House of Representatives

107 Cannon House Office Building

Washington, D.C. 20510

Re: Oil Refining - Considering future eventualities versus the myopia of the present
Dear Representative Ashford,
What is ENERGY INDEPENDENCE, really? With Saudi Arabia’s decision to keep the flow of
oil high to retain market share, they have hijacked the world with a flood of oil at reduced price,
some say with the explicit intention of destroying the economics of unconventional deposits of
shale oil and tarsands. Do they intend to extract all of their resources—before the end of oil?
The March 1, 2015 edition of Washinton Specter raises the issue squarely front and center:
Late 21st-century graduate students of business studying the growing problem of stranded
assets will almost certainly focus on the history of Canada’s Athabasca Oil Sand (aka tar
sands). The case studies they read will either describe the gradual abandonment of the
world’s largest reserve of bituminous crude or they will read about the tar sands’ miraculous
last-minute escape from becoming the world’s largest stranded asset. For either outcome,
the turning point they will look back on is just about now.
In some respects Alberta’s gigantic deposits of bitumen, a dense mixture of sand and heavy
crude oil, third in size only to the reserves of Saudi Arabia and Venezuela, were stranded
from the start by location. Situated in the heart of a vast boreal forest at the center of a very
large continent, they are hundreds of miles from the nearest refinery and thousands more
from navigable tidewater.
Of course, some of Alberta’s crude has made its way to market, but so much slower than it
could have, or was projected to, that producers, refiners, shippers, banks and other
investors in tar-sands development are beginning to wonder whether they have backed a
good play by investing over $160 billion to turn tar into oil.
So the economic stranding process has already begun. Five global energy giants—
Shell, Total, Suncor, Statoil and Occidental—have cut bait on major bitumen deposits in
Alberta, in which they had already invested billions. Suncor has just slashed another billion
dollars from its capital spending program and $800 million more from operating expenses.
And as oil prices slide lower, commercial and investment banks are reconsidering future
underwritings. An industry that recently envisioned doubling production over the next
20 years is now looking at something closer to the opposite, a halving of production
or worse in far fewer than 20 years.
Please ask refining CEOs and their Boards how they will behave as Corporate profits fail.
Sincerely yours,

Doug Grandt
answerthecall@mac.com