Repercussions for people outside New Orleans

I believe we can expect the same sort of thing when the restoration effort
gets under way after Katrina. I think that, if any of you guys have
projects in mind that require plywood (perhaps work on your hangar?), it
might be a good idea to buy it now.

A lot of building material has been going to Iraq.

You don't get it. There is more loss of refining capacity along the Gulf,
than loss of production capacity in the Gulf. There is an EXCESS of crude
supply along the Gulf.

Mike
MU-2



"Jay Honeck" wrote in message
news:K2FRe.321353$xm3.17092@attbi_s21...
What good is supplying more crude to shut-down refineries going to do?

It's replacing the crude that is (temporarily, we hope) not coming in from
the Gulf oil platforms that have been displaced or destroyed.
--
Jay Honeck
Iowa City, IA
Pathfinder N56993
www.AlexisParkInn.com
"Your Aviation Destination"

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.

"Mike Rapoport" wrote in message
ink.net...
You don't get it. There is more loss of refining capacity along the
Gulf, than loss of production capacity in the Gulf. There is an
EXCESS of crude supply along the Gulf.

Mike
MU-2

"Jay Honeck" wrote in message
news:QJtRe.320321$xm3.146714@attbi_s21...
JH Better buy gas, too. The gougers and racketeers have already
JH jumped to $3 per gallon in Des Moines, as of this morning.

Snicker Uh, Jay, that would be free market entrepeneurs. Or have
you suddenly gone righteous/socialist on us?

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.

But it's an inevitable and utterly predictable result of our government's
ill-thought-out destruction of independently owned gas stations in the
1980s and '90s. All we have left now are the big company stations,
controlled by a relatively small number of owners -- so it's easy for them
to control pricing.

The release of the reserve is going to help very little. The big problem is
not lack of crude oil it is the fact that they can't turn on the lights at
the refineries that produce 10% of our gas.

"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.

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.

"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.

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.


There is a reason why crude is backing down now....it is because people are
starting to figure out that.the ONLY customers for crude are refineries.

It is thinking like yours that keeps me in business.

Mike
MU-2

"Jay Honeck" wrote in message
news:QJtRe.320321$xm3.146714@attbi_s21...
JH Better buy gas, too. The gougers and racketeers have already
JH jumped to $3 per gallon in Des Moines, as of this morning.

Snicker Uh, Jay, that would be free market entrepeneurs. Or have
you suddenly gone righteous/socialist on us?

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 strategic oil reserve will do nothing. It is refining capacity that's
the problem. Gas prices are rising in Europe with US wholesale buyers
looking to European refineries to supply gas.

"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.

"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