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10/20/2017 1:01:18 AM
9/22/2017 12:11:25 AM
Posted: 8/31/2005 4:53:03 AM EDT
What price does the gov't sell the Oil to the Oil Companies for?
If the Gov't Discounts the Oil Price does the Oil Company have to pass on the discount to the taxpayers that purchased the oil in the first place?
Link Posted: 8/31/2005 4:56:15 AM EDT
It's through competitive bidding.

www.fe.doe.gov/programs/reserves/
Link Posted: 8/31/2005 4:58:04 AM EDT
They just pick up the 'supply' problem.

They sell it.

Doesn't matter, we can have a direct tap from Anwar..with out new refineries, we are not getting anywhere.

Besides we are ok with paying over $3.00 per gallon...why would they drop the price?

Link Posted: 8/31/2005 5:02:43 AM EDT

Originally Posted By ZitiForBreakfast:
They just pick up the 'supply' problem.

They sell it.

Doesn't matter, we can have a direct tap from Anwar..with out new refineries, we are not getting anywhere.

Besides we are ok with paying over $3.00 per gallon...why would they drop the price?




Exactly...703 million barrels of crude oil doesn't mean shit when you cannot refine it. Refineries are at capacity now. Oil supply isn't the problem, demand for refined product is. $3.00/barrel aint shit. You haven't seen nothing yet.
Link Posted: 8/31/2005 5:08:28 AM EDT
... Why aren't the generally accepted principles of supply & demand 101 kicking in?

... Why aren't investors pouring money into new refineries? Or is that the whole idea, keep the demand high hence the high prices
Link Posted: 8/31/2005 5:14:12 AM EDT

Originally Posted By Winston_Wolf:
... Why aren't the generally accepted principles of supply & demand 101 kicking in?

... Why aren't investors pouring money into new refineries? Or is that the whole idea, keep the demand high hence the high prices



Do you want a refinery in your backyard? Actually it is more complicated than that. Tree huggers and libs have gotten Environmental Laws passed over tht past 40 years that have made it impossible to build new refineries. Additionally, the world supply and our demand kept the price very low so we could buy it for less $$ than we could refine it. Now China is buying up oil and building refineries at a record pace. Throw India into the mix and now demand is at an all time high. While there is still plenty of supply, we can no longer buy refined product at a cheap cost. China is willing to pay whatever to get the oil into their reserves and out of ours. Not a tin foil hatter, but think about it. It will be very easy to overtake the US mainland if there is no fuel for our forces to go to battle with.
Link Posted: 8/31/2005 5:17:02 AM EDT
When functional, our refineries meet the demand in the US for gas and oil. Also, our usage is meeting forecasts. Up until this week, there was no refined gas shortage.

The increase in prices (up to now) has nothing to do with US consumption or supply. The increase in gas price is do to the following factors:

1. China's increased demand for crude
2. India's increased demand for crude
3. Instability in the middle east
4. Political instability in South America

That was until this week. Now, the hurricane has affected up to 30% of US production. Eight refineries have closed. Several others will have to close unless they get their normal supply of crude. That is where the reserves come in. The President will "loan" the crude to those refineries that are still open but don't have the necessary supply of crude.

We need to get the rigs in the gulf up and pumping crude to the refineries quickly. If we don't we will face supply shortages. That will mean an increase in price.
Link Posted: 8/31/2005 5:17:30 AM EDT

Originally Posted By Winston_Wolf:
... Why aren't the generally accepted principles of supply & demand 101 kicking in?

... Why aren't investors pouring money into new refineries? Or is that the whole idea, keep the demand high hence the high prices



Trying to open refineries is a money pit. Spend millions of dollars and years of time doing environmental impact studies and other BS only to get shot down by the NIMBY crowd.
Link Posted: 8/31/2005 5:20:23 AM EDT
You know, I have a silly question.

Is a 'barrell' of oil a 55 gallon drum? Or the same measurement of?
Link Posted: 8/31/2005 5:21:52 AM EDT

Originally Posted By ZitiForBreakfast:
You know, I have a silly question.

Is a 'barrell' of oil a 55 gallon drum? Or the same measurement of?



42 Gallons

What you can get from that
Link Posted: 8/31/2005 7:55:02 AM EDT
Usually sold by competetive bid but Clinton sold a buch of crude from the reserve to political cronies in 2000.
Link Posted: 8/31/2005 8:14:20 AM EDT
Link Posted: 8/31/2005 8:31:42 AM EDT
i don't think they should touch the reserve.
i think it should only be used for war time or released for heating oil in the winter.not to make gas, because we think the price is to high.
Link Posted: 8/31/2005 1:58:43 PM EDT

Originally Posted By avengeusa:
i dont think releasing it will help very much, or for very long



It doesn't have to. It just has to keep the refineries currently running stocked with crude. Once the LOOP is back on line, the supply would be restored.
Link Posted: 8/31/2005 2:01:37 PM EDT

Originally Posted By hanau:
i don't think they should touch the reserve.
i think it should only be used for war time or released for heating oil in the winter.not to make gas, because we think the price is to high.



This is the perfect time to use it. Not because of the price. We should uise it to keep refineries stocked with crude. With the whole gulf pumping line down, there will be a shortage of crude at refineries currently operating. If they don't get crude, they need to shut down. If they shut down, we have a huge supply problem.
Link Posted: 8/31/2005 2:01:41 PM EDT

Originally Posted By hanau:
i don't think they should touch the reserve.
i think it should only be used for war time or released for heating oil in the winter.not to make gas, because we think the price is to high.



Shotages are a serious problem bud. Several cities are looking at shortages. Wanna create a real problem? Let gas and diesel spike 100 or 200% in a couple of days.
Link Posted: 8/31/2005 2:47:54 PM EDT
Exactly...703 million barrels of crude oil doesn't mean shit when you cannot refine it. Refineries are at capacity now. Oil supply isn't the problem, demand for refined product is. $3.00/barrel aint shit. You haven't seen nothing yet.

And the refineries in the New Orleans area are now shut down. As per the quote, oil supply is NOT the problem, and tapping the Strategic Reserve is not going to help.
Link Posted: 8/31/2005 2:51:48 PM EDT

Originally Posted By A_Free_Man:
Exactly...703 million barrels of crude oil doesn't mean shit when you cannot refine it. Refineries are at capacity now. Oil supply isn't the problem, demand for refined product is. $3.00/barrel aint shit. You haven't seen nothing yet.

And the refineries in the New Orleans area are now shut down. As per the quote, oil supply is NOT the problem, and tapping the Strategic Reserve is not going to help.



It's both. They were quoting 1 million barrels from the gulf were /will be missed. There is a squeeze coming on raw product and refined product. It's going to get ugly. I'm not sure the oil reserve release will help as much as hoped but crude prices jumping up overnight is not helping either.
Link Posted: 8/31/2005 2:56:23 PM EDT
I hate to say this guys....

But if there were ever a time for an attack on the U.S., I think it would be coming up soon.
I think another terrorist attack is possible soon.
Link Posted: 8/31/2005 3:04:22 PM EDT

Originally Posted By GunLvrPHD:
Usually sold by competetive bid but Clinton sold a buch of crude from the reserve to political cronies in 2000.



And the estimated impact on gas prices was something like 0.5 cents/gallon.
Link Posted: 8/31/2005 3:06:25 PM EDT

Originally Posted By distributor_of_pain:
I hate to say this guys....

But if there were ever a time for an attack on the U.S., I think it would be coming up soon.
I think another terrorist attack is possible soon.



That assumes that the terrorists already had an attack planned and ready for execution. It takes AQ a long time to plan, put assets in place, and execute. Months if not years. Not to say it couldn't happen, but their ability to react to emerging targets/situations in the US is not that great.
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