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To: Cobra64

If you will take a short minute to think, it is we as a nation. Regardless. The RINOcrats in Congress certainly don't seem to want to engage the socialists on the issue and git it done now do they? I did not say YOU personally.


66 posted on 08/08/2005 10:36:23 AM PDT by RetiredArmy (The government and courts are stealing your freedom & liberty!)
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To: All

Searching around for info on the difference between what a refinery pays and what the current commodity cost is, I found this site. Hope it helps understand the forces in play.

Usual disclaimers ....

From: WTRG Economics http://www.wtrg.com/prices.htm

. . . . . On March 19, 2003, just as some Venezuelan production was beginning to return, military action commenced in Iraq. Meanwhile, inventories remained low in the U.S. and other OECD countries. With an improving economy U.S. demand was increasing and Asian demand for crude oil was growing at a rapid pace. The loss of production capacity in Iraq and Venezuela combined with increased production to meet growing international demand led to the erosion of excess oil production capacity. In mid 2002, there was over 6 million barrels per day of excess production capacity, but by mid 2003 the excess was below 2 million. During much of 2004 and 2005 the spare capacity to produce oil has been under one million barrels per day. A million barrels per day is not enough spare capacity to cover an interruption of supply from almost any OPEC producer. In a world that consumes over 80 million barrels per day of petroleum products that adds a significant risk premium to crude oil price and is largely responsible for prices in excess of $40 per barrel. . . . .


71 posted on 08/08/2005 10:40:55 AM PDT by mpreston
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