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

[nergee]

The oil companies should be more like Newman's Own...donate all profits and royalties to educational and charitable purposes.........

 

[zendari]

There is nothing unreasonable about the price of oil.

 

[CalvinHobbes]

Originally posted by: Engineer
Oil company executives defend high oil/gas prices. State the US pays a lot less than the rest of the world.

Well DUH. When you have 75% of the price of your gas as taxes in the rest of the world, the US would have a lower price now wouldn't it.

Execs just searching for new excuses.

It totally makes me sick that these people have the guts to go on TV and just lie their asses off.
The big problem now is how do the people force our govt to do something about this? I can't believe that people sit by and do nothing. We bitch and bitch about the prices and yet nothing is accomplished.

 

[dmcowen674]

Three of America's biggest Crooks and Thugs speak:

ConocoPhillips - James J. Mulva

Chevron - David J. O'Reilly

Shell Oil - John Hofmeister

Of course they fail to mention that Oil "suppiles" are the highest in 8 years.

6-18-2006 Oil company execs defend high pump prices on Meet The Press

Americans paying $3 per gallon at the pump have it relatively cheap when compared with prices globally, say oil and gas company executives who defend their record profits as essential to maintaining supplies.

In parts of Europe and elsewhere in the West, gasoline prices are more like $5 per gallon to $7 per gallon, said the chairman of ConocoPhillips Co., James J. Mulva.

"I do understand why consumers are concerned. The thing that concerns all of us, I think, is that we're heading into hurricane season again," said the chairman of Chevron Corp., David J. O'Reilly.

"If we didn't have this level of profitability, I don't think we could get the supplies to where they need to get to," said the president of Shell Oil Co., John Hofmeister.

Hofmeister said his company has held "discussions with the White House quite frequently" on issues such as gaining greater access to more domestic supplies.

The Bush administration has granted the companies ever-greater access to drilling areas on federal lands and waters.

"On a global basis, we're competing for resources," Hofmeister said. "If we're going to be more independent, we're going to have to address the tough, tough question of should we allow more oil and gas development in this country."
======================================
With Oil Inventories at 8 year highs and Bush giving them tons more access to U.S. Federal land why are they still complaining and using supply as an excuse in the face of record profits???

Answer = Greed and Bullsh1t

 

[Eos]

Originally posted by: zendari
There is nothing unreasonable about the price of oil.

Do you have any links to back this up?

 

[Rogodin2]

The projection for peak oil production from all oil producing countries is roughly 2010. Prices per barrel are going to rise until we reach that point and then it's going to get really nasty-$300 to $500 a barrel.

Rogo

 

[dmcowen674]

Originally posted by: Rogodin2
The projection for peak oil production from all oil producing countries is roughly 2010. Prices per barrel are going to rise until we reach that point and then it's going to get really nasty-$300 to $500 a barrel.

Rogo

Welcome to P&N

$300 to $500 a barrel

Wow and I get hammered for talking about $75 and it's here and $100.

 

[Rogodin2]

Glad to be here Thanks

Why did you get hammered for talking about $75pg oil prices? (ahh, in the other posts-didn't see it) edit

Ever wonder why we aren't building refineries?

Rogo

 

[Engineer]

Originally posted by: Rogodin2
Glad to be here Thanks

Why did you get hammered for talking about $75pg oil prices? (ahh, in the other posts-didn't see it) edit

Ever wonder why we aren't building refineries?

Rogo

Since the 80's, the US has reduced the number of refineries from 324 to the current number of 150. A 54% reduction in refineries. Of course, they have increased the capacity of the remaining refineries but I doubt that the remaining ones would have anywhere the total capacity of all 324.

Of course, running out of oil for them, as I think you are suggesting, would make extra refineries a moot point.

 

[dmcowen674]

Originally posted by: Engineer

Originally posted by: Rogodin2
Glad to be here Thanks

Why did you get hammered for talking about $75pg oil prices? (ahh, in the other posts-didn't see it) edit

Ever wonder why we aren't building refineries?

Rogo

Since the 80's, the US has reduced the number of refineries from 324 to the current number of 150. A 54% reduction in refineries. Of course, they have increased the capacity of the remaining refineries but I doubt that the remaining ones would have anywhere the total capacity of all 324.

Of course, running out of oil for them, as I think you are suggesting, would make extra refineries a moot point.

You'll see up in previous posts quite recently actually, the revelation of Saudi Arabian Refineries being built and they already plan on charging higher prices for the gas to shipped by tanker.

I'm sure that the Saudi's backed by the U.S. is starting to build Refineries in Iraq as well as plans to build Refineries in Iran.

 

[dmcowen674]

6-18-2006 U.S. lawmakers push sugar as fuel source after Brazil Models

WASHINGTON - With the market for corn-based ethanol booming, lawmakers from sugar-producing U.S. states are hoping that beet and cane growers can soon jump onto the renewable fuel bandwagon.

They cite the model of Brazil, which produces ethanol made from sugar cane.

"It would be absurd in 10 years if we're doing 60 billion gallons of ethanol, and the only crop in America that's not participating is sugar," said Sen. Norm Coleman, a Minnesota Republican and one of Congress' leading champions of sugar-based ethanol.
=========================
Hey I thought Republicans were all about FREE MARKET not a Government Mandated Market???

 

[catnap1972]

Originally posted by: eos

Originally posted by: zendari
There is nothing unreasonable about the price of oil.

Do you have any links to back this up?

Nah, much like practically anything else Zentard posts, he pulled that assertion out of his ass.

 

[dmcowen674]

Cool, now they are saying stations will run out of gas like 1973.

6-27-2006 Oil prices breach $72 a barrel as oil Execs warn U.S. running out of gasoline

The U.S. Coast Guard said Sunday that only limited tug and barge traffic had resumed through the Calcasieu Ship Channel, which had been off limits due to the spread of oil from a spill last week at the Citgo Petroleum Corp. facility in Lake Charles, La. The closure, which has lasted for six straight days, has forced at least four refineries on the Gulf Coast to reduce runs.

Oil prices rose above $72 a barrel Tuesday as the suspension of refinery productions along the U.S. Gulf Coast due to a shipping snag reignited concerns that gasoline supplies would not be able to meet demand during the summer driving season.

 

[LegendKiller]

Originally posted by: dmcowen674
Cool, now they are saying stations will run out of gas like 1973.

6-27-2006 Oil prices breach $72 a barrel as oil Execs warn U.S. running out of gasoline

The U.S. Coast Guard said Sunday that only limited tug and barge traffic had resumed through the Calcasieu Ship Channel, which had been off limits due to the spread of oil from a spill last week at the Citgo Petroleum Corp. facility in Lake Charles, La. The closure, which has lasted for six straight days, has forced at least four refineries on the Gulf Coast to reduce runs.

Oil prices rose above $72 a barrel Tuesday as the suspension of refinery productions along the U.S. Gulf Coast due to a shipping snag reignited concerns that gasoline supplies would not be able to meet demand during the summer driving season.

Heh, Dave, can you logically explain how concerns over gas shortage cause oil to go up? Sounds like the reporter is an idiot and you are a tool.

"Hey look guys, we don't have enough apple juice because 6 juicers broke, I guess apples should be more expensive now, not apple juice!"

Your logic, or lack thereof, is astounding.

 

[drnickriviera]

Originally posted by: dmcowen674

Originally posted by: EagleKeeper
Free Market system operates on the principle that there are alternatives that can be used to compensate for unacceptable conditions imposed by a supplier of a commodity.

At present the consumer has few options and even fewer that are acceptable.

Part has been due to the consumer's attitude. They have chosen to reject costly alternatives when they could not (were not willing to) forsee that the golden goose would eventually stop laying the eggs.

The NIMBY attitude has not helped either.

Also, the US consumer is not the only market which dilutes the impact of our actions.

This attitude has happened over the past 30+ years, not just the past 5-6.

Show me people that have rejected conversion to Hydrogen stations.

The US has rejected the small diesel. VW is the only small one here, and I seriously question their build quality. I've been waiting for a diesel in a 1/2 ton truck for a good whlie

 

[Horus]

Originally posted by: dmcowen674

Originally posted by: NeenerNeener

Originally posted by: Stunt

Originally posted by: nergee
Don't we refine around 10 million bbls/day for gasoline? I think we import around 1.4-1.5 million bbls/day Venezuela....

Most of your supply comes from Canada, Mexico and Venezuela.

2003 U.S. Oil Imports

Canada, then Saudi Arabia, then Mexico, then Venezuela, then Nigeria, then (tee hee) Iraq.

Under the totals though, Stunt's point is illustrated well (except the venezuela part). Non OPEC = 7103, OPEC =~ 5000.

Thank you. I knew we were refining a ton of Saudi Oil.

I am surprised at the amount of Canadian oil though, it is apparent the northern refineries get their bulk oil from up there while the Saudi tankers pull up to port down here.

Looks like we have to annex Canada at least just for the oil.

The main problem with canadian oil is that it's all in the oil sands, making it VERY expensive to refine and seperate from the sand. But it's makin' a KILLING for those small towns in Alberta.

 

[conjur]

Originally posted by: LegendKiller

Originally posted by: dmcowen674
Cool, now they are saying stations will run out of gas like 1973.

6-27-2006 Oil prices breach $72 a barrel as oil Execs warn U.S. running out of gasoline

The U.S. Coast Guard said Sunday that only limited tug and barge traffic had resumed through the Calcasieu Ship Channel, which had been off limits due to the spread of oil from a spill last week at the Citgo Petroleum Corp. facility in Lake Charles, La. The closure, which has lasted for six straight days, has forced at least four refineries on the Gulf Coast to reduce runs.

Oil prices rose above $72 a barrel Tuesday as the suspension of refinery productions along the U.S. Gulf Coast due to a shipping snag reignited concerns that gasoline supplies would not be able to meet demand during the summer driving season.

Heh, Dave, can you logically explain how concerns over gas shortage cause oil to go up? Sounds like the reporter is an idiot and you are a tool.

"Hey look guys, we don't have enough apple juice because 6 juicers broke, I guess apples should be more expensive now, not apple juice!"

Your logic, or lack thereof, is astounding.

I wasn't aware that Dave was now a journalist for the Associated Press.

Hey, Dave! When did you get the new job?


:roll:


Oil prices right now are high due to one thing: speculation.

 

[LegendKiller]

Originally posted by: conjur
I wasn't aware that Dave was now a journalist for the Associated Press.
Hey, Dave! When did you get the new job?
:roll:
Oil prices right now are high due to one thing: speculation.

He's about as clueless as one.

Please explain why you think speculation is driving oil prices. This ought to be pretty amusing.

 

[conjur]

Originally posted by: LegendKiller

Originally posted by: conjur
I wasn't aware that Dave was now a journalist for the Associated Press.
Hey, Dave! When did you get the new job?
:roll:
Oil prices right now are high due to one thing: speculation.

<ad hominem leveled at Dave snpped>

Please explain why you think speculation is driving oil prices. This ought to be pretty amusing.

You're joking, right?

Iran
Iraq
Nigeria
Venezuela
Katrina/Rita

That alone should be all the proof anyone needs to see that the tripling of oil prices in the last 5 years is based mostly on speculation.

Even the Saudis recognize it:
http://www.thestalwart.com/the_stalwart/2005/08/oils_price_base.html

The market is well supplied," Shaikh Ahmad said and added: "There is about or over one million bpd (oversupply) in the market. If we talk about demand and supply and other economic factors I don't think prices will reach $100 or even deserve to be near $70."

"But if we talk about other issues or realities which play a role in the price increases like geopolitics, refinery problems or psychological problems... then prices may cross $100."

From 2004 when oil was about $50/bbl
http://www.nationalreview.com/nrof_leuffer/leuffer200410010726.asp

October 01, 2004, 7:26 a.m.
The Oil Bubble: Set to Burst?
Strong fundamentals are working against a $50 barrel price.

Oil prices have soared from $32 a barrel at the beginning of the year to an all-time high of $50 a barrel at the end of September largely on the fear of supply outages stemming from terrorism and a series of odd events. Interestingly, virtually every fear so far has gone unrealized.

Terrorism has not removed a single barrel of oil production. Oil output in Saudi Arabia, instead of falling due to terrorism as some have feared, has increased by more than 1 million barrels a day this year. OPEC has steadily increased production ? by a total of 1.7 million barrels a day since January ? and has consistently outpaced analysts? estimates of its capacity. Production at Russian oil giant Yukos has not fallen ? it is up 6 percent so far this year. And despite a difficult war in Iraq, production in that country has averaged 2 million barrels a day ? a 900,000 barrel-a-day (or 78 percent) year-over-year increase ? with production currently estimated at more than 2.5 million barrels a day.

Although there have been labor strikes at various oil installations, ethnic violence in certain oil-producing countries, guerilla attacks on Colombian oil pipelines, and mechanical problems at producing oil fields ? all typical events for the oil industry ? non-OPEC production has been higher and less volatile than in the past.

The only meaningful event to hit the oil industry in recent months has been four back-to-back hurricanes in the southeastern U.S. This has caused temporary interruptions in oil and oil-product flows. Experience shows that inventories tend to rebuild quickly after these storms subside. Yet oil traders continue to speculate that oil supplies, in large quantity, will be cut off.

Perhaps there will be a supply interruption, but the likelihood of a prolonged outage is low.

What makes oil analysis difficult is that in addition to speculation and fear, there has been improvement in oil demand ? so fundamentals have played a role in the rising price of oil. This has led to concern about the level of spare production capacity and a debate about how much of the upswing in oil prices is due to speculation and how much might be due to fundamentals.

Well, let?s look more closely at the fundamentals. While demand has been strong (according to the International Energy Agency, world oil demand rose 3.8 percent in the first half of 2004, more than twice the historical growth rate), supply has been stronger. IEA figures for the first half of the year show an increase in world oil demand of 3 million barrels a day against an increase in supply of 3.5 million barrels a day. About 60 percent of the supply increase is coming from OPEC and 40 percent from non-OPEC sources.

Excess supplies are borne out by rising inventories. In the U.S., crude oil inventories increased by 50 million barrels in the first eight months of this year, the second-largest build in history, and oil inventories for the OECD (the Organization for Economic Cooperation and Development, which includes 30 member countries) increased by 83 million barrels in the first seven months of this year.

Recently, the growth in oil demand has begun to slow in response to high prices and slower economic growth. According to the American Petroleum Institute, U.S. oil demand rose only 0.5 percent in August, owing to a fall in gasoline demand. Oil demand through August is up 1.7 percent, compared with growth of 2.9 percent in the second quarter. Demand-growth in August for China, at 10 percent, was less than half the rate estimated for the first half of the year.

It comes down to this: Fundamentally speaking, oil prices should today be in the high-$20-a-barrel range. That?s based on an assessment of supply/demand economics and current inventory levels (adjusted for hurricane effects). Eventually, that barrel price should decline into the low $20s as oil inventories rise. Why the more-than $20-a-barrel difference between where prices are and where they should be? In large part, speculation.

Wall Street Journal
Oil Settles Above $70 a Barrel, Despite Inventories at 8-Year High
http://users2.wsj.com/lmda/do/checkLogi...%2Farticle%2FSB114532452352528310.html

The answer to the puzzle posed by rising prices and inventories, industry analysts say, lies not only in supply constraints such as the war in Iraq and civil unrest in Nigeria and the broad upswing in demand caused by the industrialization of China and India. Increasingly, they say, prices are also being guided by a continuing rush of investor funds into oil markets. Institutional money managers are holding between $100 billion and $120 billion in commodities investments, at least double the amount three years ago and up from $6 billion in 1999, says Barclays Capital, the securities unit of Barclays PL.

The flow of money into oil, analysts say, has been prompted by a spreading belief that demand for oil will continue to rise with global economic activity as supply tightens under the influence of several factors - among them, the West's escalating nuclear standoff with Iran; growing political violence in Nigeria; and more broadly, steadily growing economic activity. The three year bull run in oil has been underpinned by strong global demand for fuel coupled with a prolonged shortage of spare capacity to pump and refine crude.

"What's been happening since 2004 is very high prices without record-low stocks," says Jan Stuart, global oil economist at UBS Securities. "The relationship between U.S. inventory levels and prices has been shredded, has become irrelevant."

Had enough or are you thirsty for more?

 

[GoPackGo]

It annoys me that they get away with this.

Imagine if the CEO of a major corporation speculated that the product he sells was going to sell billions...his stock goes up, he sells, and then when the announcement comes the product didnt meet expectations and the stock tanks...wouldnt that CEO be going to jail?

 

[dmcowen674]

Originally posted by: conjur
Wall Street Journal
Oil Settles Above $70 a Barrel, Despite Inventories at 8-Year High
http://users2.wsj.com/lmda/do/checkLogi...%2Farticle%2FSB114532452352528310.html

Although the News reported this today we already saw Gas prices vault past $3 over the weekend. Most stations are closing in on $3.50 now.

Prices here went from $2.79 to $3.15 overnight Monday.

I didn't look at the station on the corner yet but I'm sure has gone up even more since Monday.

7-5-2006 Oil prices climb to record above $75

Oil prices jumped to a record above $75 a barrel on Wednesday, propelled by a rally in gasoline that analysts said could send average U.S. pump prices past $3 a gallon by the weekend.

With refiners fetching the equivalent of $95 a barrel or more ? there are 42 gallons in a barrel ? "one doesn't have to be disciplined in the buying of crude," explained Tom Kloza, an oil analyst at Oil Price Information Service in Wall, N.J.

"The bulls just seem to have plenty of fodder to sustain ever higher prices," Fimat USA oil analyst John Kilduff said. Kilduff said a severe disruption in oil supplies from a hurricane or some other event could send oil racing toward $90 a barrel.

 

[conjur]

$2.85 -> $3.09 here now. Same prices we saw in the aftermath of Katrina. What's the excuse this time? Kenny Boy's funeral going to be *that* expensive?

 

[GoPackGo]

Originally posted by: conjur
$2.85 -> $3.09 here now. Same prices we saw in the aftermath of Katrina. What's the excuse this time? Kenny Boy's funeral going to be *that* expensive?

We are all puppets on the oil mans strings.

 

[EagleKeeper]

Originally posted by: conjur
$2.85 -> $3.09 here now. Same prices we saw in the aftermath of Katrina. What's the excuse this time? Kenny Boy's funeral going to be *that* expensive?

Panic due to the NK missle fiasco

 

[RightIsWrong]

Originally posted by: EagleKeeper

Originally posted by: conjur
$2.85 -> $3.09 here now. Same prices we saw in the aftermath of Katrina. What's the excuse this time? Kenny Boy's funeral going to be *that* expensive?

Panic due to the NK missle fiasco

The North Koreans are in the oil producing business? It's all BS used to line pockets.