Repercussions for people outside New Orleans

Mike Rapoport wrote:
If the SPR oil goes to refineries in the midwest (where the supply of crude
is unaffected) how will that really help? I agree that announcing the
availiiblity of SPR oil has some marginal calming effect on the markets in
the immediate term, but it is not going to affect the supply of gasoline in
any meaningful way.

Any thoughts as to how the SPR oil will be allocated?
Auction?

john smith wrote:

Any thoughts as to how the SPR oil will be allocated?
Auction?

Can't say, but we built a metering skid for the one in the Sulphur, La.
area (West Hackberry). That was after the salt dome got penetrated by a
well digger and set on fire. They had no idea how much was in there nor
how much was lost. So they used the skid to meter what was pumped out
and from then on, what was pumped back into it... Badly twisted my ankle
on that b*tch when I jumped off of it from making final adjustments, a
steel toed boot got hung between the fins on the explosion proof box. 3
days later I put down my crutches and limped down the isle that weekend
to marry my wife, 25 years ago come January...

"john smith" wrote in message
. ..
Mike Rapoport wrote:
If the SPR oil goes to refineries in the midwest (where the supply of
crude is unaffected) how will that really help? I agree that announcing
the availiiblity of SPR oil has some marginal calming effect on the
markets in the immediate term, but it is not going to affect the supply
of gasoline in any meaningful way.

Any thoughts as to how the SPR oil will be allocated?
Auction?

No. The SPR "lends" the crude to the refiner and the refiner than replaces
it at a later date.

Mike
MU-2