What "glut" are you talking about?
End of Quarter and Year, Most Recent Quarters and Years, Selected OECD Countries, Total OECD, Stocks for Export and Afloat, and Commercial Floating Stocks
http://www.eia.doe.gov/emeu/ipsr/t23.xls
Posted on 05/13/2008 4:17:57 AM PDT by freerepublic_or_die
Oil and Gas executives say that the price-per-barrel of oil will drop significantly from the current high level by the end of the year, according to the results of a survey conducted by KPMG LLP's Global Energy Institute. In this year's KPMG survey, which polled 372 financial executives from oil and gas companies in April 2008, 55 percent of the respondents think that the price-per-barrel of crude oil will drop below $100 by the end of the year.
Twenty-one percent think that the price will close between $101 and $110; 15 percent think between $111 and $120; and nine percent believe it will close at above $120. And, while 44 percent felt that prices would peak by the end of the year, a further 39 percent thought that they would not peak until after 2010.
"The combination of traders moving resources into commodities and the weak dollar has had a significant role in the surge in pricing in recent weeks," said Bill Kimble, executive director for KPMG's Global Energy Institute. "However, in addition, there are underlying, issues in the energy industry, such as escalating energy demand in emerging markets and declining oil reserves, which will continue to contribute to upward pricing pressure for years to come."
Despite the fact that the majority of executives questioned expect the price of oil to fall below $100 a barrel, 44 percent plan to increase their upstream capital spending by more than 10 percent over the next year, an increase of nine percent over last year. Twenty-six percent say that investment will increase by up to ten percent, and increase of ten percent over last year. Only five percent anticipate a decrease in investment in the coming year.
(Excerpt) Read more at energy-daily.com ...
NO
My dad, (who lets himself get worked up about everything), was VERY upset yesterday, telling me he saw a news story on Fox News saying gas was expected to top $10 per gallon!
Just what in the Hell is going on with gas prices?
I keep hearing that consumption is up.
Well, why the H don’t they “turn on the spigot full blast?”
How nice, but until then I’d better stock up on KY to make this petrochemical rape a bit more tolerable.
I saw some top trader guy on CNBC the other day who said that based on the fundamentals oil should be trading at about $85.
What a great example of the word “relative”.
Imagine 3 years ago if someone had said oil would “only be” about $95.00 bbl or so later in the year 2008?
Light, sweet crude (as is called the benchmark oil quality)
is cheaper.
The real question is will the price of other products fall when the price of their main commodity falls? We know the price of gas will go down when the price of oil goes down because we’ve seen it time and again. (How ever long it takes, it takes. I don’t want to get into that discussion.) But will the price of bagels go down when wheat goes down? Or will the finished product spike remain after the commodity spike is no longer with us?
Sure, prices will fall right after BO gets elected.
But, we all know that’s going to happen.
No more homeless people either. They only exist during Republican administrations.
Translation: “Don’t tax me, bro!”
ha ha ha GOOD COMMENT!
I wish the Left would tell us what their energy policy is.
Conservation and so-called Green energy isn’t going to cut it.
Once demand here goes down, the price will go down and OPEC will continue to keep the U.S. hooked on oil. Prices will then rise again to start the cycle all over.
With the glut of light, sweet crude “offshore and off the books” the oil bubble bursting will be dramatic!
The oil companies would much rather grow and expand their businesses and provide their products at a more reasonable price to the consumer.
What do you mean by a petro rape?
....slap on a little extra too so you can accommodate not only the oil companies but the elected government officials and their family members in the Congress, Senate, who own oil stocks and just love the big dividend checks and how their stocks are gaining such value....Oh, who cares if they own stock in a business they are elected to regulate, no conflict there. On second thought, perhaps you may have to buy two or three jars of KY....
Always a pleasure to see so-called Conservatives on a Conservative site mindlessly bashing corporations who make about eight cents a gallon on gasoline.
What "glut" are you talking about?
End of Quarter and Year, Most Recent Quarters and Years, Selected OECD Countries, Total OECD, Stocks for Export and Afloat, and Commercial Floating Stocks
http://www.eia.doe.gov/emeu/ipsr/t23.xls
Didn’t I write “offshore and off the books?”
Maybe.
But I'm not sure that I would want to spend hundreds of millions on a new refinery so that excess capacity would show up and marginal prices drop. Much better to run what I have at 98% and see prices go up a little every time I have to do some maintenance.
Offshore stocks including floating stocks are tracked.
Where is your source of information for “off the books” stocks? No commodity is tracked as much as petroleum.
huh, since when did we start electing officials to regulate business? If that's the idea that people have of the role of government in this country, even on this web site, we're in much more trouble than even I thought...
But seriously, do you see a conflict in our elected officials and family owning stock in an industry they are to regulate?
Being these elected officials do not allow new drilling, make building near but impossible, leading to increased costs, higher profits. Yes my friend, profit margins on a gallon of gas have increased since the mid 90’s. Why are oil companies not being more aggressive in pointing out the conflicts are elected officials have or is it that both our elected officials and the oil companies love the status quo as both are making plenty of money off this?
You are kidding right...our elected officials do not introduce any legislation to regulate the oil industry or any industry for that matter?
There's drilling going on in ANWR and the Gulf of Mexico that has been declared off-limits?
Good!
We will need that oil to make the 50 different blends of gasoline that the oil companies just up and decided to make on a whim to fill the extra capacity in all those new refineries they are building.
Sheridan: Crime?
Musante: Yes, there is some. But it's all caused by the mentally unstable and we've just instituted correctional centres to filter them out at an early stage.
Sheridan: Prejudice?
Musante: No, we're just one happy planet. Well, all right, there's the Marsees. But that won't change until they stop fighting the Earth rule.
Sheridan: And when exactly did all this happen?
Musante: When we rewrote the dictionary. Captain, you're a good man, you're a fine soldier, a leader. You understand that sometimes before you can deal with a problem you have to redefine it.
Sheridan: But you can't deal with the problems by pretending they don't exist.
Musante: There's no need to embarrass our leaders by pointing out the flaws in our society that they're aware of and dealing with in their own way. Some people just enjoy finding fault with our leaders! They're anarchists, they're trouble makers or they're simply just unpatriotic.
-- Babylon 5, "Voices Of Authority"
Then why have the oil companies been fighting to expand against the Democrats and the environmentalists who are impeding them?
It’s bad business to intentionally keep supply low when demand is high.
If you want to believe the oil companies are intentionally not growing their business and intentionally keeping supply insufficient to meet demand, NOTHING will convince you otherwise.
You would think if they believed what they spewed they would buy stock in BIG OIL and take advantage of their so called KY situation. Is it time for an IQ check?
Spot on!
No, I'm not kidding and I stand by my original statement - since when did we start electing officials to regulate businesses? Do you realize what that means to 'elect officials to regulate business'?
FRiend, we are no longer living in a free society if we are electing government officials to regulate our businesses, and, in turn, to regulate our economy. No wonder we keep drifting toward socialism - if no one out there, even on this site, realizes that in order for a society to be truly free, government must be relegated to a minimalistic role in the lives of the citizenry (i.e. to provide for the military, to provide for the national security of the country and to protect the rights of individuals). Anything more than that and you will eventually end up in the boat we're in now.
You’d be better served to stock up on petrochemical stocks.
I have VGENX, Vanguard’s Energy Index fund. If this article is true, however, I should look at trying to sell it at the top before the end of the year.
Bush has been pushing new refineries since the beginning of his administration. Oil companies have complained about it for years.
The Envirowackos have us over a barrel, so to speak.
Game, set, match. Hello, President Obama.
Pelosi came out recently with a very clear energy policy.
1) Investigate the oil companies.
2) Sue the oil companies.
3) Tax the oil companies.
4) Absolutley no new drilling.
Because the OPEC nations, which are the only ones with spigots dialed down from full blast, need to be able to pay for indoor downhill skiing facilities in the middle of the desert.
I wonder at what price gas has to be in order for it to be “profitable” for companies to extract oil from shale.
At some point in price, I’d almost be willing to pay more for domestic just to keep our dollars “in house” and never have to depend on those muzzie OPEC a-holes for another drop.
I would like to think it would HURT for them to no longer have the U.S. as a customer. We constantly hear how the U.S. consumes the biggest percentage of oil in the world, bla, bla, bla.
But, I know nothing about economics and how things work in the real world, so all I can do is sit here and vent on FR.
Wish this wasn't a political bubble as my royalties are jaw-dropping, with a new well about to be drilled.
Man, I truly wish this wasn't a political bubble!!!
I don’t find any information available at that site.
But if you are talking about items like:
Iran confirms supertanker for 90-day crude storage
http://www.guardian.co.uk/business/feedarticle/7514226
Tuesday May 13 2008
Iran has booked a supertanker to store up to 270,000 tonnes of crude oil for up to 90 days, adding to the more than 28 million barrels of oil floating outside its main export terminal, shipbrokers said on Tuesday.
The use of tankers for crude oil storage also comes at a time when Iran’s Bandar Abbas refinery starts maintenance on a 110,000 barrels per day (bpd) crude distillation unit (CDU), scheduled to last for about 30 days. The CDU at the 225,000-bpd Bandar Abbas refinery is the second crude unit to go on maintenance at the complex this year, as Iran looks to boost the plant’s capacity to 320,000 bpd.
28 million barrels is less than a 8 hour supply of the global supply/demand. Hardly enough to flood the market and keep the price down for an extended period of time.
Also note that this isn’t 28 million extra, 10 million barrels is about the amount they normally kept on hand. And the crude is mostly heavy and sour.
Soroush and Nowruz crudes contain about 3.5 percent sulfur. The discount for Iranian Heavy crude relative to lighter Omani and Dubai oil is at $3.25 a barrel, compared with $1.49 in December.
Iran Doubles Oil Stored in Tankers, Bolstering Rates
http://www.bloomberg.com/apps/news?pid=20601109&sid=akLt5fJKQNr8&refer=home
Great point Ain’t that the truth!
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