US oil stockpiles hit record amid production boom

Discussion in 'Too Hot for Swamp Gas' started by HallGator, Apr 24, 2014.

  1. HallGator
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    HallGator Administrator VIP Member

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    I know, I know, it's a world market or at least that is the refrain we've heard over time. Although it seems to me the law of supply and demand really doesn't have much of an affect on prices. What does have an affect, it seems, is any excuse they can trot out to keep prices artificially high.

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  2. Sohogator
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    A lot of people can't figure out what's going on why the stubbornly high price of oil. Gas is a different story no where near enough refining capacity.
  3. philnotfil
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    philnotfil Well-Known Member

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    Utilization rate is actually down over the last few years, we are using less of our capacity that we previously were. Which suggests that our refining capacity is not a cause of high prices for gas.

    eia.gov
  4. gatorman_07732
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    gatorman_07732 Well-Known Member

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    What about speculators? Just asking, I'm not sure myself.
    There is the ongoing Russian situation and if I were to guess I would that might be the reason prices are rising.
    Last edited: Apr 24, 2014
  5. 108
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    108 Premium Member

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    so "Drill Baby Drill", doesn't bring down the price of gasoline?
  6. Minister_of_Information
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    Minister_of_Information I'm your huckleberry Premium Member

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    Bear in mind that "summer driving season" is right around the corner, and inventories will come down quite a bit before it is over. All of that is going to play in the futures market, along with the usual collusion.
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  7. cocodrilo
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    cocodrilo Well-Known Member

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    I don't understand why we insist on depending on foreign oil (that is, I don't know the rationale or what the excuse is supposed to be, I know damn well why we do it).
    Last edited: Apr 24, 2014
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  8. G8trGr8t
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    those stockpiles referenced in the article are gulf coast storage numbers that have run up due to the southern leg of the keystone xl from Cushing being put into full operation and the refineries doing maintenance and switching blends to summer blends. Once that storage is full they will reduce imports from Venezuela and Mexico. When refinery operations ramp back up the storage volumes on the gulf cost should begin to recede and more refined product hit the market place.

    Refined product is being exported because the US has the cheapest source of enrgy to fuel refineries and the US has some of the best, most efficient refineries. Refined product, just like wheat, beef, chicken, corn, is a world commodity and the US consumer will have to pay the world market rate.

    Cost of oil is up due to price of oil in Cushing (WTI) (where reserves are dropping), price of ethanol, price of moving oil by rail to Cushing, and price to ship anything domestically (Jones act). The gap between WTI and Brent Sea is closing. The days of getting WTI oil for $25 per barrel cheaper than the rest of the world pays (Brent Sea) are in the past.

    Ukraine and the prospect of sanctions against Russian oil companies and those that deal with them is also probably being priced in by those that have to protect themselves too (airlines, shipping companies, etc)
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  9. Sohogator
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    But we don't. Read a little.
  10. cocodrilo
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    cocodrilo Well-Known Member

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    Well I've read for a decade that the invasion of Iraq was really about oil, and that there were plans to invade Afghanistan even before 9/11 to make possible a pipeline for - what was it? I think it was oil. There must be something to our perceived preoccupation with foreign oil, considering that we basically created the present crisis with Iran (I think it's a phenomenon called blowback) by overthrowing their democratically elected government back in the 1950s because of - what was it? Oh yes, oil. But there could be nothing to see here.
  11. Sohogator
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    Iraqi was certainly about oil and the twisted geopolitical machinations of the neocons. Afghanistan was not about oil but over time it became about control over rare metals and minerals which Afghanistan has in abundance. Valued at well over $1T
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  12. HallGator
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    HallGator Administrator VIP Member

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    Question for you:

    Do you personally profit when oil prices are high?
  13. gatorman_07732
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    gatorman_07732 Well-Known Member

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    So, exactly how much oil did we get out of that whole Iraqi thing?
  14. Sohogator
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    Sohogator Premium Member

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    None,

    Iraq was an unmitigated disaster led by the bush cabal.
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  15. cocodrilo
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    cocodrilo Well-Known Member

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    And turns out we're going to leave it all there. What a truly successful war! (When was the last time we won one? If my memory serves me correctly, it was WWII. Oh wait, we conquered Grenada, but I think we only stayed a few days. No oil.)
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  16. busigator96
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    busigator96 Premium Member

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    Who Canada? They seem pretty cool to me.
  17. Sohogator
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    We also kicked ass in Panama killed 500+ civilians...
  18. OklahomaGator
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    OklahomaGator Jedi Moderator VIP Member

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    Iraq I was a pretty convincing victory if I remember right. We went in, accomplished the UN Mission mandate of getting Sadam out of Kuwait, and left.
  19. Sohogator
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    Had we not gone back it would have been...
  20. gatorman_07732
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    gatorman_07732 Well-Known Member

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    So you made a completely unfactual statement you couldn't backup.

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