Why Do Higher Gas Prices Anger You?

Impressive return. I was quoting a report I heard on NPR last week, that's gov't radio for ya! LOL!

No need to hurry the process being there are no new refineries to finish it. Hello bottleneck.

Brand X wrote:

Impressive return. I was quoting a report I heard on NPR last week, that's gov't radio for ya! LOL!

No need to hurry the process being there are no new refineries to finish it. Hello bottleneck.

It is an intentional bottleneck, because there is zero reason for the oil companies to increase refinery supply. Having less refineries = less cost of ownership AND higher gas prices. What is the downside?

Cycloptichorn

Thomas wrote:

Bear -- in your opinion, can oil prices move in any direction without proving that Bush conspires with Big Oil? Evidently "up" and "down" don't qualify.

sure.... when bush is a private citizen and he is no longer using oil prices to manipulate his political agenda...l

Bi-Polar Bear wrote:

Thomas wrote:

Bear -- in your opinion, can oil prices move in any direction without proving that Bush conspires with Big Oil? Evidently "up" and "down" don't qualify.

sure.... when bush is a private citizen and he is no longer using oil prices to manipulate his political agenda...l

And after a new president takes office,and the price of oil still goes up,who will you blame that on?

OPEC to slash output for first time in 2 years
Cartel to trim one million barrels a day; announcement sends price back above $60

GHAIDA GHANTOUS AND TOM ASHBY

Reuters News Agency

DUBAI; ABUJA -- OPEC will take one million barrels of oil a day off oversupplied world markets as soon as possible with its first output cut in more than two years, OPEC officials said yesterday, sending oil prices back above $60 (U.S.).

Leading oil exporter Saudi Arabia will shoulder the biggest part of the burden as the Organization of Petroleum Exporting Countries moves to address a 23-per-cent drop in prices since July 14 and fuel stocks that are at a seven-year high in the United States, a senior OPEC delegate said.

The organization that pumps over a third of the world's oil will curb supplies by over 3 per cent, he said. "The goal now is to cut actual oil production by one million barrels daily as soon as possible but the exact date is still being worked out," the delegate said.

The U.S. was dismayed by the news. Energy Secretary Sam Bodman said he will tell OPEC ministers that the world still needs all the oil OPEC could pump heading into winter. He noted that at $60 a barrel oil was still near record highs. "We still need oil for sure. We still need all the oil we can get."


Nine OPEC countries will take part in the supply curbs and will cut their "fair share" from overall OPEC production, the senior delegate said. OPEC pumped 29.47 million barrels a day in September, according to a Reuters survey.

Only Iraq, exempt from quotas, and Indonesia, a net importer, will not participate, he added. All of this could pave the way for a realignment of OPEC quotas, and tricky negotiations, at a meeting already scheduled for December.

OPEC president Edmund Daukoru said later yesterday that some members wanted an emergency meeting before then, but he thought it would be worthwhile only if the group were ready to make a substantial cut from its ceiling of 28 million b/d.

"If we meet now, to have an impact on the market . . . it would have to be substantive," said Mr. Daukoru, who is also Nigeria's Minister of State for Petroleum.

He said a reduction of one million b/d would be in line with market fundamentals.

So far, six members -- top exporter Saudi Arabia, Algeria, Venezuela, Nigeria, Libya and Kuwait -- were making voluntary cuts, but he did not say by how much. Talks were continuing on how to stem what he called a freefall in prices.

The senior OPEC delegate said Saudi Arabia will reduce its production by 300,000 b/d from September's 9.1 million b/d, taking the kingdom's production to its lowest since May, 2004.

This will be OPEC's first output cut since April, 2004.

The group last changed its ceiling in July, 2005, with a 500,000-b/d increase in response to rising demand from the U.S. and China's fast-growing economy and a seemingly relentless rise in the price of oil.

But the situation has changed in recent months with a stumbling U.S. economy and a rapid descent in the price of oil from its $78.40 peak in mid-July.

OPEC delegates said the organization's primary concern is the high level of global fuel stocks.

Analysts have expected OPEC to cut output for some time, especially after Nigeria -- which holds the OPEC presidency -- and Venezuela said last week that they were making unilateral reductions.

"The marketing departments of these countries are finding it difficult to move their oil. And high global inventories are of grave concern," said Gary Ross of New York's PIRA Energy.

The front-month November light, sweet crude contract on the New York Mercantile Exchange closed 59 cents or 1 per cent higher at $60 a barrel after earlier trading as high as $60.97.

Oil prices have tripled since the start of 2002.

"Having less refineries = less cost of ownership AND higher gas prices. "

anyone willing to sink some money into buiding a new refinery ?

hbg

so , should i bet AGAINST shell ?

thomas :
i think that shell is in the position of a casino owner ; they'll adjust "the odds" in their favour to make sure they come out ahead :wink: .
hbg