Repercussions for people outside New Orleans

"Chris" wrote in message
...

"Jay Honeck" wrote in message
news:XpERe.80402$084.49625@attbi_s22...
Listen up people, it is WAY past time for us to develop more of our
own oil reserves and build another refinery (at least). We are now
seeing the absolute total folly of not building required infrastructure
to support our current economic lifestyles.

Personally, if I were in a position of responsibility and had failed
so miserably at maintaining adequate facilities and preparing contingent
operations I should FIRED.... perion, end of story.

They can't maintain contingent operations, because they can't build new
refineries -- period.

Look at the environmental laws that restrict refineries. Look at the
number of refineries built since those laws hit the books.

It ain't a coincidence, and anyone who says that the "free market" is at
work here just hasn't looked at the problem.

The free market is at work which is why Europe is facing higher gas prices
as US buyers come looking for gas.

Personally I would shut them out and say if you were not buying from us
before go away, and leave the US to rot this time but money always wins
out.


Actually if you owned the gasoline or worked for the people who owned it,
you would sell it to those who were willing to pay the most for it. You
would do this because you would know that there is somebody somewhere on the
planet that would be willing to sell to the US buyers for a higher price and
the only one hurt by your action would be you or those you represent. The
reality is that the worldwide supply of gasoline is now reduced from what it
was last week and therefore gasoline is worth more. The price will rise
until demand is reduced to equal supply. It is an inescapable fact.

Mike
MU-2

Please explain how 20 platforms disappearing in the Gulf is only a
modest effect on production?

"Mike Rapoport" wrote in message
k.net...

"sfb" wrote in message
news:k0GRe.28079$Bc2.4142@trnddc06...
The post you cut says there is an excess of crude, but the price
increases over the last few months refute that unless the laws of
supply and demand have gone sour. Today's prices may be the lull
before the storm until the full extent of Kartina is known.

"N93332" wrote in message
...
"sfb" wrote in message
news:TEFRe.28069$Bc2.4672@trnddc06...
Really not sure who doesn't get it. When demand exceeds supply,
prices go up and the price of crude has been on a skyrocket.

But crude HASN'T skyrocketed. Watching CNBC shows that crude is
currently at 68.85 which isn't THAT much higher than it was last
week. Crude hasn't gone up (much), but the refining it has.




Yes, the price increase over the past few months is a function of
global supply/demand and the markets observation that higher prices
aren't changing consumers' behavior yet. The price action late last
week and early this week is a function of panic/speculation based on
not knowing what the affect of Katrina would be on production and
refining. Now that it looks like the affect on production will be
modest and the effect of refining will be significant, everything will
start to readjust.

Mike
MU-2

Most GOM production is natural gas not crude. Most of the "platforms" you
are referencing are actually drilling rigs not production platforms and I
haven't seen the number 20 "disappearing" anyway. Obviously this is all bad
stuff, but it is refined distillates and natural gas that are most affected.

Mike
MU-2





"sfb" wrote in message news:ZtGRe.31577$Uz2.21522@trnddc02...
Please explain how 20 platforms disappearing in the Gulf is only a modest
effect on production?

"Mike Rapoport" wrote in message
k.net...

"sfb" wrote in message
news:k0GRe.28079$Bc2.4142@trnddc06...
The post you cut says there is an excess of crude, but the price
increases over the last few months refute that unless the laws of supply
and demand have gone sour. Today's prices may be the lull before the
storm until the full extent of Kartina is known.

"N93332" wrote in message
...
"sfb" wrote in message
news:TEFRe.28069$Bc2.4672@trnddc06...
Really not sure who doesn't get it. When demand exceeds supply, prices
go up and the price of crude has been on a skyrocket.

But crude HASN'T skyrocketed. Watching CNBC shows that crude is
currently at 68.85 which isn't THAT much higher than it was last week.
Crude hasn't gone up (much), but the refining it has.




Yes, the price increase over the past few months is a function of global
supply/demand and the markets observation that higher prices aren't
changing consumers' behavior yet. The price action late last week and
early this week is a function of panic/speculation based on not knowing
what the affect of Katrina would be on production and refining. Now that
it looks like the affect on production will be modest and the effect of
refining will be significant, everything will start to readjust.

Mike
MU-2

On 2005-09-01, Chris wrote:
Personally I would shut them out and say if you were not buying from us
before go away, and leave the US to rot this time but money always wins out.

My, aren't you bitter.

--
Dylan Smith, Castletown, Isle of Man
Flying: http://www.dylansmith.net
Frontier Elite Universe: http://www.alioth.net
"Maintain thine airspeed, lest the ground come up and smite thee"

"sfb" wrote

Please explain how 20 platforms disappearing in the Gulf is only a
modest effect on production?


Probably because there were about 4,000 to start with. At least
that is according to a map of platforms shown on CNN.

Bob Moore

My wife came home from work yesterday and told me that a very large
supply of gasoline the company she works for has been holding in reserve
for corporate operations has been confiscated by the federal government.

Jay Honeck wrote:

Thousands of gas stations jacking gas prices nationwide, in lock-step with
each other, because of a trumped up "disaster" (and in the face of the
release of the Strategic Oil Reserve, which will totally off-set any effect
of Katrina) is not "entrepreneurship" -- it's criminal.

The stuff in the reserve is crude, still has to be refined...
Some of the strategic reserves are in the effected area, gotta have
power and fuel to move it...

Mike Rapoport wrote:

There is more refining capacity offline that production capacity.
Releasing crude from the SPR will do nothing.

Percentage-wise, that is correct. However, the SPR oil will go to
refineries (mostly in the Midwest as I understand it) that are streamlining
gasoline production (thanks to the EPA relaxing regional formula
restrictions). This will help reduce or eliminate shortages.

Even if that's not the case, releasing the SPR signaled the market the
government will Do Something to settle oil futures prices.

Even if the effect of SPR oil on actual short-term fuel supplies ends up
being minimal, releasing the oil is the right thing to do. This is the very
type of emergency it should be used for (even if it was a different type of
emergency that spawned its creation).

--
John T
http://tknowlogy.com/TknoFlyer
http://www.pocketgear.com/products_s...veloperid=4415
Reduce spam. Use Sender Policy Framework: http://spf.pobox.com
____________________

sfb wrote:

Really not sure who doesn't get it. When demand exceeds supply, prices
go up and the price of crude has been on a skyrocket.

The process is sequential - crude to refining to distribution. If any
single step is broken, output stop. The AP reports the Coast Guard says
20 oil rigs and platforms are missing in the Gulf of Mexico. Unless they
were drilling for ice cream, methinks there will soon be a crude oil
shortage.

The LOOP system is offline due to power requirements. Once power is
restored and suitable destination is available the supertankers can
start offloading. That suppliments offshore production, does nothing for
increasing refining capacity...

Chris wrote:

Personally I would shut them out and say if you were not buying from us
before go away, and leave the US to rot this time but money always wins out.

Your existance kinda makes me sorry about my german heritage...

Any chance I could drop by for a visit, if I do happen to travel Europe
next year?