Oil economics

“We are competing with bad government for oil?”

“Umm no Tango, those barrels are going to be needed soon.”

“We are at 701.1 million barrels right now. The highest since 2005. That is 58 days of import protection. Why are we (taxpayers) buying this oil at the highest price ever why doesn't the gov't just stop buying this for a few months or so the price will go down for us and the supply to the reserves.

# 2005 Hurricane Katrina Sale - 11 million barrels
# 1996-97 total non-emergency sales - 28 million barrels
# 1990/91 Desert Shield/Storm Sale - 21 million barrels
(4 million in August 1990 test sale; 17 million in January 1991 Presidentially-ordered drawdown)

Great website:
http://www.fossil.energy.gov/programs/reserves/spr/spr-facts.html”

“The barrels will be needed... Besides it wont drop the price anyway. Too many other forces are at work driving the price up right now.

Isnt it interesting how all those claiming things are gonna be ok or that things will get better are also the ones preparing for very hard times?”

“They mean better for "them".”

“Even if we get up to full capacity it will only add about 2 more days of import protection. I think an extra 70k barrels a day would have an impact on the price. Not a huge impact but an impact.”

“My sports page headlines:' Johnson turns fuel gamble into first win of year.' But he still does a burn out after winning.”

“Huh?

Is Johnson gambling on fuel price futures?”

“here is one reason why we need those barrels.

http://www.energybulletin.net/1269.html

indirectly related and on other fronts....

http://www.financialarmageddon.com/”

“and much more recently...

http://www.energybulletin.net/42610.html”

“So 20 million barrels of oil (2 days of importation) is going to do what? I think that it is a drop in the bucket that would better be served in the market helping the consumer rather than going into storage for a rainy day. The rainy day is now and I think that we should curtail buying 70k barrels a day for a few months not forever.”

“Air raids into Iran will take lots of fuel.”

“No, Higher fuel prices now is what really serves american interests...Pull your head out of your hummers exhaust pipe and see whats going on.”

“The SUVs and 50 ft. long pickups will just move to Used Owners and get less service. I agree on high prices , but would have preferred the Ross Perot tax method rather than making trillionaires out of the 'Worst persons in the world'.”

“An article in Moneyweek said that the increased costs of gas, food and other things have caused people to put vacation plans on hold. In a survey only 16% of families made vacation plans where ordinarily 45% would have. Who knows for sure how things will play out, but what caught my eye was that they said there may be an increased interest in camping because, it's a cheap vacation.
last edited: 4/14/08 7:05:26 PM”

“except, of course, for the drive to the trailhead.

seeing as how its cheaper to fly nowadays, we should build runways at all the trailhead”

“Why is the airline ticket cheaper?”

“I just read this about oil futures.
""Demand for gasoline is terrible," said Phil Flynn, an analyst at Alaron Trading Corp. in Chicago. Gas demand has fallen an average of 1 percent each of the last four weeks compared to the same period last year. "Demand should be rising this time of year.
Demand for gasoline has been falling for months as consumers reacted to a series of price records by driving less. The national average price of a gallon of regular unleaded gas rose 1.3 cents Wednesday to a record $3.399 a gallon, according to a survey of stations by AAA and the Oil Price Information Service. That's 53 cents higher than a year ago, and is expected to keep climbing along with futures prices and as the summer driving season draws near.

The average national price of a gallon of diesel, meanwhile, rose a cent to a record $4.129 a gallon, the survey showed. High prices for diesel -- used to fuel most trucks, trains and ships -- is a large part of the reason food prices are rising.

Gas and diesel prices are following crude futures, which have risen from about $64 a barrel last spring, mostly because of the falling dollar. Many investors buy commodities such as oil as a hedge against inflation and a falling greenback. Also, a weaker dollar makes oil cheaper to investors overseas.

The dollar fell to a new low against the euro on Wednesday, supporting oil prices.

Prices also have been supported in recent months by a view that demand for oil remains strong globally, although it may be falling in the United States. But that could change, if U.S. demand continues to weaken, analysts say.

"We're seeing a major slowdown in U.S. demand growth," Flynn said.

Still, analysts expect gas prices to rise higher before they fall. Many see retail prices peaking around $3.65 a gallon next month. The Energy Department, in a recent forecast, said prices could average as high as $3.60 a gallon this summer on a monthly basis, but could spike to $4 on a national average basis at times."”

“We see an increase of ER cases with people swallowing gas when trying to syphon and steal it.”

“They make hand pump syphons for that Mark although the vaccuum approach is probaby faster.

It is fun to drive past a Carmax. All you see is large diesel pickups as well as the larger SUV's.

My cousin just bought one of those duel fuel Chevy Yukons. These can use regular unleaded and the E85 gas, I think? Is the E85 gas that much cheaper in the long run? I think it runs about $2.90 a gallon here vs. $3.55 for regular, however you get less miles to the gallon, right?”

“The SUVs and 50 ft. long pickups will just move to Used Owners and get less service. I agree on high prices , but would have preferred the Ross Perot tax method rather than making trillionaires out of the 'Worst persons in the world'.

Very true. If we had implemented a tax that increased say 10 cents a year right after the 70's fuel crises and put the money into developing alternate fuels we would not be in this mess. Our economy would have already adjusted to the higher price of fuel and we could have even delayed peak oil by a decade or more.

The problem with e85 is your milage goes way down and you end up burning more gas then if you ran pure particularly in the more fuel efficient vehicles.

Anyone see the news that russian output dropped for the first time in a decade?”

“Thank god our leaders had the foresight to try to plan for this situation ....”

“The only real reason prices are not higher right now is the drop in demand.....”

“It isn't just gas they are stealing from cars. On the news they said thieves are cutting off the catalytic converters from cars with a sawzall tool because they contain precious metals. They said they can go under the car or truck and make off with one in 2 minutes netting a nice profit from selling the metal. I think they said it was the platinum and rhodium inside the converter. Not a nice thing to hear when you park a car at a trailhead. I didn't hear of it happening around here, but give it time if the price keeps rising for precious metals.”

“RichB, I saw that too. They said that the cops (I don't remember which city) are recommending etching your vin # on the converter. They are hoping that junk yards and parts places will not buy if there is an identifying number on it.”

““Thank god our leaders had the foresight to try to plan for this situation ....”
Y2
5:23:16 PM
4/16/08

English "leaders" must really be on the ball.”

“Nascar is still the #1 sport and you all wonder why we are in this mess.”

“Not to mention all the wannabe drivers I see every day.... :}”

“$117 a barrel.”

“Just says the dollar's down is all.”

“The day is not long off when you wheel the cash to the store in a shopping cart and carry the groceries it buys home in your back pocket.”

“yep, the dollar is down...
oh and lets mention 12 percent inflation and 12 percent unemployment.

http://www.shadowstats.com/

I wonder what goes through a lemmings mind just before it gets pushed off the edge?”

“Supply Side Slide, you ready to ride?”

“Remember when you kept going to Walmart and buying all that imported stuff cuz the price was right? Oil prices are going to moon because foreign governments are buying oil futures with money you spent at Wally World. So I guess you weren't so smart afterall was you?”

“If Walmart relied on me for it's survival, they'd be Nomart about now. Walmart does, however, levy a working mans tax on it's shoppers which returns to haunt shoppers in the form of Gov bonds and bills, that can only be payed back to China with dollars that are worthless. How far does your forklift have to drive to your favorite Wally world?”

“THE AVERAGE RESIDENTIAL CUSTOMER'S UTILITY BILL WENT UP 196% between 1972 and 1983, according to a survey by the National Association of Regulatory Utility Commissioners ....

10 METHANOL-POWERED BUSES have been added to Seattle, Washington's Metro transit system to replace aging conventional carriers ....

120,000 FRENCH HOMES ARE NOW HEATED GEOTHERMICALLY, and the number is expected to jump to 850,000 by 1990 . . . .


SALES OF GASOHOL SOARED TO A RECORD LEVEL LAST YEAR, when some 5.7 billion gallons of blended fuel (10% ethanol, 90% gasoline) were sold. 5.42% of all the gasoline purchased in the U.S. in 1984 contained at least some ethanol ....

CALIFORNIA'S BOOMING WIND INDUSTRY HAS INJECTED $1 BILLION of private investment money into the state's economy, creating 3,000 jobs since 1981, says the California Energy Commission.
last edited: 4/19/08 1:18:39 PM”

“Oil spiked to $120 pb and is now falling.”

“(UAUA) parent of United Airlines down 36% today .”

“Ua-Ua??

Is that some kind of tropical beast?”

“Ua Ua comming on da airplane to spend some pesodollars in my tourista trap?”

“Huh?

You gone to sellin' Canned Rattlesnake now?

Market that bad?”

“Can't fill the SPR cans(tanks) with snake oil.

I'm tired of listening to BS from
last edited: 4/22/08 12:39:18 PM”

“Turn off the sound and just watch the light show.”

“Truckers protested in front of the White House today. They be back if this comes to pass.

"Crude oil may rise to $200 a barrel by the end of the year as refiners increase purchases of low- sulfur oil to make diesel fuel, economist Philip Verleger said.

Ultra-low-sulfur diesel powers most U.S. trucks and diesel- burning cars. To make the fuel, refiners are buying more-costly low-sulfur oils such as the West Texas Intermediate crude traded on the New York Mercantile Exchange, said Verleger, president of PKVerleger LLC, in an interview.

``It's conceivable'' oil could rise to $200 a barrel by the end of the year, he said. If economic ``growth resumes, we are short diesel and no way we are going to fill the gap.''

Lower-sulfur crude is easier to refine into ultra-low-sulfur diesel than heavier, higher-sulfur oils, said Verleger, who, in 2005, predicted oil would rise to $100 a barrel. The diesel was introduced to the U.S. in 2006 to cut air pollution.

Converting higher-sulfur crude into diesel requires hydrogen, which is in short supply, Verleger said. The element is a byproduct from making gasoline. Refiners are making less of the motor fuel than in the past because of increased ethanol use, and therefore less hydrogen, Verleger said.

The 2007 Renewable Fuels Standard, signed last December, mandates that the U.S. use 9 billion gallons of renewable fuels, such as ethanol this year and 36 billion gallons by 2022. U.S. gasoline production in November was 1.4 percent lower than two years earlier, Energy Department data show."
last edited: 4/28/08 6:09:35 PM”

“What better way to protest high gas prices than fill up your rig and drive into town?”

“It didn't look too effective from what I saw on the news.”

“bring on the rail cars”

“The oil companies are refining LESS OIL THAN LAST YEAR!”

“like diamonds, limit supply, keep price high. The bastards”