Oil prices climb based in part to hurricane fears

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gtalum
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#41 Postby gtalum » Wed May 09, 2007 1:24 pm

feederband wrote:So your saying that the cost of building and running a refinery and having more supply out there(right now I see no gas stations out of gas) which will lower the amout of price per gallon will make them more profit?


A new refinery will allow them to greatly increase the volume of petroleum they can refine and sell. That means more profit.
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#42 Postby WeatherEmperor » Wed May 09, 2007 4:12 pm

CajunMama wrote:
WeatherEmperor wrote:
Trader Ron wrote:I get a kick out of folks who think nothing of buying a $3 cup of Starbucks Coffee or a $2 bottle of water,but complain about the price of gas :D

Gas is a cheap commodity, compared to inflation.


It is very difficult to compare a star bucks coffee to gasoline. Remember its $3 a gallon, not $3 per tank fill-up. Most of us end up paying around $60 per week for gasoline which is about $240 a month which is about $2880 per year, do you see where Im going with this? But I do see your point though.

<RICKY>


Let's see
a $3 starbucks coffee a day for 365 days...$1095. That's an awful lot of moolah there for caffeine.
My gas costs me $910/year at $3/gallon.

As for $60 per week of gasoline...what and where are you driving???????? I conserve and fill up every 2 weeks for $35. I don't run unnecessary errands and combine many trips into one. I don't leave work for lunch.


Haha thats true! I dont know what sense it is to purchase a $3 starbucks coffee every single day of the year for 365 days. Lets be real honest here. We can live without coffee. Unfortunately at the moment, we cannot live without gasoline(until we get a new fuel source). Most people pay even more than $60 a week for those who drive SUV's and minivans. I drive long distance to work cause I have to pay the bills. In short, people wont suffer if the price of coffee shoots up, cause we can always live without it or even substitute to another drink, but people sure will suffer if the price of gasoline shoots up even more then it is right now cause right now we CAN'T live without it. Just like some people drive short distances to work, some people have to drive long distances to work. They have to. Keywords: Have To. We Have To use gas for our cars. The oil companies know this and as a result we are all getting screwed.

<RICKY>
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#43 Postby lurkey » Wed May 09, 2007 6:19 pm

feederband wrote:
gtalum wrote:
feederband wrote:Why would they do that...It would cost them money to build it and the price of gas goes down... Its a Lose lose for them...


It doesn't work that way. The more volume they refine, the more profit they make, no matter what the end price of gasoline is. The oil companies all want to build more refineries. They can't get through the red tape to do so.


So your saying that the cost of building and running a refinery and having more supply out there(right now I see no gas stations out of gas) which will lower the amout of price per gallon will make them more profit?

I think they are the red tape...


The oil companies have to comply with environmental laws that require the oil companies to jump through a lot of hoops (and go to through a lot of red tape) to build refineries in this country. The federal government (i.e. the courts, Congress and the Presidential branch), along with the environmental groups, have been unwilling to either cut out some of the red tape or streamline the building process. I have heard estimates of up to ten years to build a refinery. A simple cost/benefit analysis is probably telling the oil companies that it ain't worth the amount of money that will have to be put into the process to get a refinery built.
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#44 Postby TSmith274 » Wed May 09, 2007 8:41 pm

Louisiana has plans to add another refinery... the first one constructed in some 30 years in the U.S. That'll help, but it is years away.
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#45 Postby MGC » Wed May 09, 2007 9:00 pm

My brother-in-law says getting oil in not the problem. There is plenty of oil available to refine. The problem is the refinery is at capacity. Shell Norco is making as much gas as they can. I imagine the Chevron refinery over in Pascagoula is operating at peak capacity also. To get the price of gasoline down consumers must cut demand. So start driving less or drive a more fuel efficient car if you want cheaper gas. Simple micro economics.......MGC
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#46 Postby Stratosphere747 » Wed May 09, 2007 9:00 pm

Folks need to be honest here.

Oil prices are NOT climbing based on the concept of hurricane fears. This is nothing more than a media influence. Do they use forecasts and such for a barometer to play the futures market, of course.

But there are far more deciding factors that raise the cost per barrel, or a gallon of gas.

Come down to Texas this summer. If all goes well, our gas will be about .30 cheaper than anywhere else in the nation.
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Where is the oil?

#47 Postby jimvb » Thu May 10, 2007 6:22 am

If there is plenty of oil available, where is it? The four biggest oil fields in the world are all declining, including Mexico's Cantarell field. There are lots of small oil fieldlets coming up for production, but we'll be lucky if they even match the decline of the big ones. We are getting refinery shortages because there are not enough refineries. There aren't more refineries than what is out there because the oil companies figure that additional ones would be unusued and a waste of money, because of the approach of peak oil. Remember also that the US hit peak oil in the 1970s and that probably explains why refineries have not been built since then.
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#48 Postby HURAKAN » Thu May 10, 2007 6:27 am

Most of the oil being use today in the world is the one that is easily accesible for extraction. I learned in my Geology class that in SW United States, in placed like Colorado, there is oil available but is very difficult to extract because it's found in places were the rocks are not very porous and not allow the oil to accumulate in one place but in different places. The professor told us that if we depended on this oil it would coast about 120 dollars a barrel.
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#49 Postby hial2 » Thu May 10, 2007 9:03 am

The continental US has the highest reserve of SHALE oil in the world...very hard to extract,but there nevertheless..
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#50 Postby HURAKAN » Thu May 10, 2007 9:05 am

hial2 wrote:The continental US has the highest reserve of SHALE oil in the world...very hard to extract,but there nevertheless..


If no other fuel alternative is found before available reserves are depleted, we may have to pay the price of the expensive-to-extract oil.
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#51 Postby gtalum » Thu May 10, 2007 9:09 am

HURAKAN wrote:If no other fuel alternative is found before available reserves are depleted, we may have to pay the price of the expensive-to-extract oil.


My understanding is that shale oil is already viable at todays' prices. They're extracting it in Canada to the extent that it's completely reshaping Canada's economy and enriching the western plains provinces. It's causing a mass migration westward.
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#52 Postby LSU2001 » Thu May 10, 2007 11:10 am

gtalum wrote:
HURAKAN wrote:If no other fuel alternative is found before available reserves are depleted, we may have to pay the price of the expensive-to-extract oil.


My understanding is that shale oil is already viable at todays' prices. They're extracting it in Canada to the extent that it's completely reshaping Canada's economy and enriching the western plains provinces. It's causing a mass migration westward.


I think you may be talking about the tar sands in Canada. It is true that this oil is viable for extraction at todays prices but it will be years before the proper infrastructure is in place to actually make this oil commercially available. The main problems is the enormous amount of energy needed to extract the oil. There is talk about building a nuclear plant to provide the energy needed to "boil out the oil" Currently natural gas will provide the energy but prices of NG are climbing as fast or faster than oil. Bottom line is that "Cheap" oil is a thing of the past IMHO.
TIm
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#53 Postby Frank2 » Thu May 10, 2007 11:16 am

Just an FYI reminder - be careful what you post here about possible tropical storm or hurricane developement, now and in the future, since oil and gas speculators use and abuse this site by reading any "inside information" posted on this and other weather web site message boards, in order to gain an edge on the market...

That alone can help to prematurely drive up the price of oil and gas WE use...

Unfortunately, market speculators have little or no conscience, and, will use or abuse any form of media in order to gain an edge (I worked on Wall Street, so)...
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