Oil thread 9-7-06:Former BP head of Pipeline invokes 5th

[dmcowen674]

Oil back over $52, Today's excuse, Saudi King in Hospital

6-1-2005 Oil Prices Rise Above $52 Per Barrel

Hospitalization of Saudi ruler King Fahd might also have been putting upward pressure on prices over the past few days.

Oil prices are about 23 percent higher than a year ago.

On Tuesday, prices inched higher after Venezuela's oil minister Rafael Ramirez said the Organization of Petroleum Exporting Countries should cut its official oil production quota or leave it unchanged at the group's next meeting.

The OPEC ministers are scheduled to meet in Vienna on June 15. The cartel has been pumping at 25-year highs in an attempt to keep prices in check.
=============================================
They call these prices "in check" ???

 

[conjur]

It's hit $53 today.

 

[EagleKeeper]

Pump proces are different than the spot market prices which are based partially on speculation.

The prices reflect uncertainity of the stability of the Saudi government.
Insurance policy for the traders.

 

[dmcowen674]

6-1-2005 Crude Oil Prices Surge Above $54 a Barrel Because People Are Scared

WASHINGTON - Oil prices jumped by more than $2.50 a barrel on Wednesday in a rally brokers pinned on fears of tight supplies at the end of the year even as they were stunned at the market's volatility.

It was the seventh straight trading session in which crude oil futures have risen, lifting prices above $54 a barrel, and to their highest level in a month.

"It doesn't make a lot of sense," said John Kilduff, senior oil analyst at FImat USA in New York. "But fears about fourth quarter demand are feeding on themselves and a lot of people are scared.

They don't want to miss the boat again if it looks like crude is going to go back up to $58."

Brokers traced the start of Wednesday's rally to heating oil futures, which shot up by 9.05 cents to $1.54 a gallon. They said the gains then spread to other commodities. Gasoline futures climbed 7.72 cents to $1.5442.

"This could be the kickoff of the heating oil season ? in June," Lebow said.

Oil prices are now 24 percent higher than a year ago.

 

[conjur]

Staying above $54
http://www.marketwatch.com/news/newsfin...245494&siteID=mktw&scid=0&doctype=806&

 

[dmcowen674]

Today's daily excuse for rising Oil

Fox Oilstorm movie worries traders about Hurrican taking out Gulf Of Mexico Oil Ports again

OilStorm

6-6-2005 Oil Prices Rise Above $55 Amid Supply Fears On Hurricanes

Crude oil futures extended their rise above $55 a barrel Monday as the start of the hurricane season bolstered traders' fears of a supply crunch caused by possible refinery glitches.

The Atlantic hurricane season starts this week and continues until the end of November. Traders recall that Hurricane Ivan wrecked seven oil platforms and numerous pipelines when it hit the Gulf of Mexico last year.

Oil prices have escalated on fears that heating oil supplies will be insufficient as refiners strive to meet strong demand for gasoline and diesel.

"The gloomy forecast for this hurricane season will put the market more on edge and will increase price volatility, even if this year doesn't deliver a replay of Ivan's damage," said Houston-based Energyintel analyst John Sullivan.

Oil analyst Victor Shum of Texas-based Purvin & Gertz in Singapore said the hurricane season has added to traders' fears of a supply shortfall if refineries are wiped out. Last year, more than 30 million barrels of oil production were lost in the Gulf of Mexico since mid-September when Hurricane Ivan struck.

The recent jump of oil prices has largely been defying market fundamentals, with barely any new bullish factors emerging during the last two weeks," PVM said. "In actual fact, U.S. inventory data has shown distillates stocks rising by 2.7 million barrels in the last two weeks."

The fact that U.S. refineries are already running close to the maximum and Sunday's airing of the U.S. television docudrama "Oil Storm" depicting the scenario of $150-a-barrel crude due to a hurricane paralyzing Gulf production and terrorism hitting Saudi Arabia, "might ... raise the fear premium in oil traders' heads," it said, adding: "The whole industry is increasingly convinced that high prices are here to stay."

 

[dmcowen674]

6-7-2005 The United States' emergency fuel tank ? the Strategic Petroleum Reserve ? is almost full for the first time since its creation about 30 years ago.

Will Market Notice Full Petroleum Reserve?

Whether or not prices ease after the SPR is full, the process's end will temporarily put to rest a debate about whether the Bush administration's policy of filling the reserve to the brim amid record-high oil prices was a good one.

Amounts to less than 0.2 percent of the average worldwide demand of about 84 million barrels a day.

The oil in the SPR now is roughly worth $18 billion.

With U.S. oil imports exceeding 10 million barrels per day, the SPR theoretically holds enough fuel to cover more than two months worth. However, the maximum drawdown capacity of the reserve is 4.3 million barrels a day, according to the government, which amounts to 27 percent of the daily input to refineries in the United States.

 

[1EZduzit]

Originally posted by: Spencer278

Originally posted by: zephyrprime
It doesn't make sense to me to burn corn. Why not burn the empty corn cobs? The cobs are useless and I would guess that they burn better than the kernels.

The only reason for ethonal and burning corn is to support red neck farmers.

LOL, somebody has to feed your sorry a$$.

I know quite a few farmers who heat their shops with corn and some heat there homes with it also.

 

[1EZduzit]

Originally posted by: zephyrprime
It doesn't make sense to me to burn corn. Why not burn the empty corn cobs? The cobs are useless and I would guess that they burn better than the kernels.

The cobs put organic matter back into the soil. Hardly anybody picks and shells their corn anymore anyway. It's all done with a combine and the cobs aer chopped into little pieces.

 

[zendari]

Dave, don't you drive a Nissan Pathfinder? If so, why do you drive a gasguzzling hog, then complain about the prices?

 

[dmcowen674]

Originally posted by: zendari
Dave, don't you drive a Nissan Pathfinder? If so, why do you drive a gasguzzling hog, then complain about the prices?

I have a 1998 6 cylinder regular size Caravan that gets over 20 mpg.

Where I moved in actually has the old 1992 6 cyclinder that gets well over 20 mpg. I just converted the R-12 to R-134 and put a set of new brake pads on, it now is almost at 250,000 miles.

I doubt that my Caravan will make it to 250K miles.

Nice try, play again

 

[1EZduzit]

Originally posted by: dmcowen674

Originally posted by: zendari
Dave, don't you drive a Nissan Pathfinder? If so, why do you drive a gasguzzling hog, then complain about the prices?

I have a 1998 6 cylinder regular size Caravan that gets over 20 mpg.

Where I moved in actually has the old 1992 6 cyclinder that gets well over 20 mpg. I just converted the R-12 to R-134 and put a set of new brake pads on, it now is almost at 250,000 miles.

I doubt that my Caravan will make it to 250K miles.

Nice try, play again

I have a 1989 Plymouth voyager that has 169,000 on it and still running like a top. I just put new 60,000 mile warranty tires on it becaue I'm guessing it will get 200,000 easily.

 

[Engineer]

Originally posted by: dmcowen674
6-7-2005 The United States' emergency fuel tank ? the Strategic Petroleum Reserve ? is almost full for the first time since its creation about 30 years ago.

Will Market Notice Full Petroleum Reserve?

Whether or not prices ease after the SPR is full, the process's end will temporarily put to rest a debate about whether the Bush administration's policy of filling the reserve to the brim amid record-high oil prices was a good one.

Amounts to less than 0.2 percent of the average worldwide demand of about 84 million barrels a day.

The oil in the SPR now is roughly worth $18 billion.

With U.S. oil imports exceeding 10 million barrels per day, the SPR theoretically holds enough fuel to cover more than two months worth. However, the maximum drawdown capacity of the reserve is 4.3 million barrels a day, according to the government, which amounts to 27 percent of the daily input to refineries in the United States.

The Shrub....er....Bush administration has already made it publicly known that they intend to raise the limit from 700 million barrels to 1 billion barrels once the SOR is full. Can't let the pressure off, now can we.

Also, I wonder if the 2 million barrels of oil "LOANED" from the SOR to the big oil companies because of last years Gulf of Mexico shutdown (hurricanes) has ever been "PAID" back yet? eh?

 

[2cpuminimum]

1. No single solution is going to replace oil but ethanol, biodiesel, TDP, windmills and solar could potentially be ramped up to replace most of our oil usage within ten years. Increases in CAFE standards would of course offer the easiest and most immediate benefit.
2. Yes using windmills and solar now DOES have an impact on oil pricing because those sources displace natural gas power plants. Natural gas competes with oil to provide winter heat. Thus increasing clean electric energy decreases oil demand. Coal providing majority of power is irrelevant to this fact, as NG plants are still being manufactured.
3. IMHO in order to avoid a truly severe energy price spike later, the US should pass a continually increasing oil import tarriff, perhaps an extra $.25/barrel tax every month for the next ten years. This would render more predictable the benefit of investing in alternative fuels, while simultaneously helping to balance record deficits. Of course, the money would have to be spent providing food stamps to anyone with an income under $20k/year since otherwise that demographic would be hit hardest. But if nothing is done then that demographic will be totally skrood when prices really spike, since they won't be able to buy any fuel efficient used cars.
4. Close the SUV tax loophole and open up a fuel efficient vehicle tax credit for cars that get greater than 40mpg or run on a fuel that is more than
11%renewable.
5. Instead of farming subsidies there should be greater windfarming subsidies /kw of production. Farmers could then get paid more for hosting windmills on their land.
6. Nuclear power should be reserved for military vessels and spacefaring vehicles. Fissionable materials are a very limited resource. If you consider the true costs then wind power is a better deal anyways. People only build nuclear because it is so heavily subsidized by the gov't, and they're not held responsible
for true waste storage/disposal costs. There is enough potential capacity in unused land to completely switch all us electric generation to wind and solar.
7. Why don't toyota and honda support alternative fuels? Why don't american automakers support more fuel efficient vehicles? Everyone take a moment to email toyota and honda and ask them when they are going to make their cars compatable with e85 or biodiesel80.

 

[charrison]

Originally posted by: Engineer

Originally posted by: dmcowen674
6-7-2005 The United States' emergency fuel tank ? the Strategic Petroleum Reserve ? is almost full for the first time since its creation about 30 years ago.

Will Market Notice Full Petroleum Reserve?

Whether or not prices ease after the SPR is full, the process's end will temporarily put to rest a debate about whether the Bush administration's policy of filling the reserve to the brim amid record-high oil prices was a good one.

Amounts to less than 0.2 percent of the average worldwide demand of about 84 million barrels a day.

The oil in the SPR now is roughly worth $18 billion.

With U.S. oil imports exceeding 10 million barrels per day, the SPR theoretically holds enough fuel to cover more than two months worth. However, the maximum drawdown capacity of the reserve is 4.3 million barrels a day, according to the government, which amounts to 27 percent of the daily input to refineries in the United States.

The Shrub....er....Bush administration has already made it publicly known that they intend to raise the limit from 700 million barrels to 1 billion barrels once the SOR is full. Can't let the pressure off, now can we.

Also, I wonder if the 2 million barrels of oil "LOANED" from the SOR to the big oil companies because of last years Gulf of Mexico shutdown (hurricanes) has ever been "PAID" back yet? eh?

You have brought this up before, and did not substantiate the claim. Max capacity is slightly over 700M barrells, so raising the limit to 1billion barells would be no small task.


I beleive the loan was less than 500k barrels. It probably worked out like other loans from SPR in the past.

 

[dmcowen674]

Originally posted by: charrison

Originally posted by: Engineer

Originally posted by: dmcowen674
6-7-2005 The United States' emergency fuel tank ? the Strategic Petroleum Reserve ? is almost full for the first time since its creation about 30 years ago.

Will Market Notice Full Petroleum Reserve?

Whether or not prices ease after the SPR is full, the process's end will temporarily put to rest a debate about whether the Bush administration's policy of filling the reserve to the brim amid record-high oil prices was a good one.

Amounts to less than 0.2 percent of the average worldwide demand of about 84 million barrels a day.

The oil in the SPR now is roughly worth $18 billion.

With U.S. oil imports exceeding 10 million barrels per day, the SPR theoretically holds enough fuel to cover more than two months worth. However, the maximum drawdown capacity of the reserve is 4.3 million barrels a day, according to the government, which amounts to 27 percent of the daily input to refineries in the United States.

The Shrub....er....Bush administration has already made it publicly known that they intend to raise the limit from 700 million barrels to 1 billion barrels once the SOR is full. Can't let the pressure off, now can we.

Also, I wonder if the 2 million barrels of oil "LOANED" from the SOR to the big oil companies because of last years Gulf of Mexico shutdown (hurricanes) has ever been "PAID" back yet? eh?

You have brought this up before, and did not substantiate the claim.

:roll:

Lovely new piece of info I got from someone in the Oil business here that will of course remain anonymous that our Government pre-approves the Oil Industry pricing.

Basically the same as the price per barrel target range of OPEC.

Makes sense since the Economy thrives or dies based on the cost of the black gold.

 

[0marTheZealot]

Originally posted by: 2cpuminimum
1. No single solution is going to replace oil but ethanol, biodiesel, TDP, windmills and solar could potentially be ramped up to replace most of our oil usage within ten years. Increases in CAFE standards would of course offer the easiest and most immediate benefit.
2. Yes using windmills and solar now DOES have an impact on oil pricing because those sources displace natural gas power plants. Natural gas competes with oil to provide winter heat. Thus increasing clean electric energy decreases oil demand. Coal providing majority of power is irrelevant to this fact, as NG plants are still being manufactured.
3. IMHO in order to avoid a truly severe energy price spike later, the US should pass a continually increasing oil import tarriff, perhaps an extra $.25/barrel tax every month for the next ten years. This would render more predictable the benefit of investing in alternative fuels, while simultaneously helping to balance record deficits. Of course, the money would have to be spent providing food stamps to anyone with an income under $20k/year since otherwise that demographic would be hit hardest. But if nothing is done then that demographic will be totally skrood when prices really spike, since they won't be able to buy any fuel efficient used cars.
4. Close the SUV tax loophole and open up a fuel efficient vehicle tax credit for cars that get greater than 40mpg or run on a fuel that is more than
11%renewable.
5. Instead of farming subsidies there should be greater windfarming subsidies /kw of production. Farmers could then get paid more for hosting windmills on their land.
6. Nuclear power should be reserved for military vessels and spacefaring vehicles. Fissionable materials are a very limited resource. If you consider the true costs then wind power is a better deal anyways. People only build nuclear because it is so heavily subsidized by the gov't, and they're not held responsible
for true waste storage/disposal costs. There is enough potential capacity in unused land to completely switch all us electric generation to wind and solar.
7. Why don't toyota and honda support alternative fuels? Why don't american automakers support more fuel efficient vehicles? Everyone take a moment to email toyota and honda and ask them when they are going to make their cars compatable with e85 or biodiesel80.

Good steps in the right direction, but still we will be dependant on oil for many many many things. Oil is the philosopher's stone.

 

[dmcowen674]

OPEC meeting in full swing, new set of bull coming out

6-14-2005 OPEC Looking to Ease High Oil Prices

VIENNA, Austria - OPEC must work to ease stubbornly high oil prices and get them down to "more reasonable" levels, the group's president said Tuesday ahead of a key meeting that will test its clout and credibility.

For the past 1 1/2 years, OPEC has been incapable of pushing prices down," said Deborah White, an energy analyst at Paris-based SG Securities.

"In order for them to regain control over oil prices, they need to have clear objectives followed by clear actions," she said.

OPEC President Sheik Ahmed Fahd Al Ahmed Al Sabah of Kuwait said Tuesday the group had little choice with prices well above the psychologically important threshold of $50 per barrel.

"Whenever it's over $50, we have to react," he said.

"The market is well-supplied, but we have to do everything we can to make more reasonable prices."

The Organization of Petroleum Exporting Countries ? beset by prices hovering around $55 a barrel ? is expected to raise its daily output ceiling by 500,000 barrels to an official quota of 28 million barrels per day when it meets Wednesday.

Some officials and industry analysts say the move would be purely symbolic, since OPEC ? which churns out 40 percent of the world's crude ? is already pumping a bit more than 28 million barrels a day.

Raising the quota to match reality, they contend, would do little to drive down prices that are bedeviling motorists at the gas pumps and putting the brakes on the global economy.
==============================================
Mmmmmm, time for a poll on wheter prices are really "putting the brakes on the global economy".

 

[dmcowen674]

This is just disgusting.

6-14-2005 White House Official who edited climate change report joins Exxon

WASHINGTON - A former White House official and one-time oil industry lobbyist whose editing of government reports on climate change prompted criticism from environmentalists will join Exxon Mobil Corp., the oil company said Tuesday.

The White House announced over the weekend that Philip Cooney, chief of staff of its Council on Environmental Quality, had resigned

White House spokeswoman Dana Perino said Cooney's departure was "completely unrelated" to the disclosure two days earlier that he had made changes in several government climate change reports that were issued in 2002 and 2003.

The White House made no mention of Cooney's plans to join Exxon Mobil, the world's largest oil company. Its executives have been among the most skeptical in the oil industry about the prospects of climate change because of a growing concentration of heat-trapping gases in the atmosphere. The leading greenhouse gas is carbon dioxide from burning fossil fuels.

Like the Bush administration, Exxon Mobil Chairman Lee Raymond has argued strongly against the Kyoto climate accord and has raised questions about the certainty of climate science as it relates to possible global warming.

After Cooney's involvement in editing the climate reports was first reported by The New York Times, the White House defended the changes, saying they were part of the normal, wide-ranging review process and did not violate an administration pledge to rely on sound science.

A whistleblower, Rick Piltz, who resigned in March from the government office that coordinates federal climate change programs, made the documents ? showing handwritten edits by Cooney ? available to the Project on Government Accountability and, in turn, to news media.

 

[dmcowen674]

The Oil Baron Bastages are playing this down.

This pisses me off personally as I watch and enjoy the Pelicans glide along the Causeway bridge.

So if anyone believes Oil operations are non-polluting or not harmful think again.

6-15-2005 Cleanup launched after deadly oil spill

NEW ORLEANS - Officials from several federal and state agencies are scrambling to deal with a small but deadly oil spill in Breton Sound. The spill is blamed for killing at least 400 brown pelicans and oiling one-thousand more.

 

[zendari]

Oh noes, the pelicans!

 

[Tommunist]

Originally posted by: zendari
Oh noes, the pelicans!

yeah - who cares about the environment anyway - it's not like we have to live here or anything

 

[0marTheZealot]

In a 30 billion barrel per year industry, spills are bound to happen. It's only a matter of statistics.

 

[0marTheZealot]

http://www.emagazine.com/view/?2574

An absolute must read. Matthew Simmons is one of the smartest people I've ever had the pleasure to meet.

 

[dmcowen674]

Originally posted by: 0marTheZealot
http://www.emagazine.com/view/?2574

An absolute must read. Matthew Simmons is one of the smartest people I've ever had the pleasure to meet.

He is just echoing what has been said in here by myself as well as many others in here.

I wouldn't be surprised if one of the cast of characters in here is him.

Cliff Notes:

He's pretty sure we reached and passed Peak Oil but there is lack of written data to prove it.

Water injection and lack of output from key fields is basis of proof.

Kill all truck traffic and switch to rail.

Going to War for Oil was inevitable.

Having our backs against the wall is when we are best.
=========================================
That may have been true against a common enemy for WWII but the enemy is ourselves this time.