$3 gas -- is it here to stay?

CNN/Money ^ | 9/7/05 | Chris Isidore

[Osage Orange]

Congressman Barton himself told me that the energy bill removed numerous restrictions. As for "they never intended to build new ones", that is an assumption based on the age old question of "why would they?". They've made billions with out new ones so, why would they put more refined product on the market and cut into their PROFIT?

Well okay that's a start....

Now...exactly what restrictions..specifically..did this Congressman Barton tell you were removed?

Oh I see...an assumption on your part. So..you really don't know that they never intended to build new ones....Okay...that makes sense now.

Thanks-

[tobyhill]

The only problem with displacing foreign "owned" is that US companies actually own majority stakes in the simply renamed foreign companies where they get cheap labor and undercut priced crude.

[tobyhill]

Just got off the phone with Bartons office and according to them,"Environmental regs were lifted or reduced with all energy forms including nuclear". They also told me that if the energy companies had other environmental concerns, they will address them immediately. Yea, I don't know for sure but being the lying scumbags the oil and gas giant executives are, I doubt they will build any new ones. Now on your way if you want to pay $3.00 a gallon or even $2.89 and then give them more tax dollar pork.

[tobyhill]

I stand corrected, got one commitment.

[thackney]

The only problem with displacing foreign "owned" is that US companies actually own majority stakes in the simply renamed foreign companies where they get cheap labor and undercut priced crude.

The US imported the following for June 2005
(in thousand barrels for the month)
Canada 4,428
Virgin Islands, U.S. 3,100
Netherlands 2,121
United Kingdom 1,714
Venezuela 1,447
Italy 1,307
Lithuania 1,016
Other Non-OPEC 788
Finland 565
Netherlands Antilles 564
Mexico 498
China 479
Chad 418
Russia 414
Portugal 321
Germany 259
France 130
Argentina 125
Sweden 16
Nigeria 1

You believe the majority of this is by US owned companies?
(source http://www.eia.doe.gov/pub/oil_gas/petroleum/data_publications/petroleum_supply_monthly/current/pdf/table37.pdf)

[thackney]

Do you understand that in spite of not building completely new refineries, that the existing refineries have been upgraded and expanded, raising the US capacity nearly every year of the last decade?

[Doctor Stochastic]

Well, maybe $3 gas now and then during a price war.

[tobyhill]

Yes,"majority stake" was my comment,
Investors.

[tobyhill]

expanded refineries are a good thing but most companies don't want to upgrade to process cheap sour and the ones that upgraded have record maintenance periods which offsets much increased capacity periods.

[thackney]

the ones that upgraded have record maintenance periods which offsets much increased capacity periods.

You claiming that downtime has increased that negates the increaded capacity? That seems hard to substantiate given that the actual production through the US refineries has grown over the last decade. Granted, it has not grown enough, but it has grown.

[tobyhill]

The cost isn't justified if compared to the amount of growth. Cost has increased over 120% in less than 5 years but the consumption worldwide is slightly over 20% in 5 years. Now since Oil Giants have been nominated as the corporate citizens of the year, how can any company make record profits if they don't have the product to sell? Now just for making a remark about REAL capacity, when a company declares shut down for maintenance it does not count for or against capacity in their weekly inventory report so a company can legally make a claim that they are running 96% capacity with 4% in shut down but in reality they are truly running at 92%. Straight from the top analyst mouth at the EIA.

[thackney]

The cost isn't justified if compared to the amount of growth. Cost has increased over 120% in less than 5 years but the consumption worldwide is slightly over 20% in 5 years.

Cost vs. consumption is not a 1:1 ration, never has been.

Now since Oil Giants have been nominated as the corporate citizens of the year, how can any company make record profits if they don't have the product to sell?

???? I do not understand. Except for the supply interruptions due to the recent hurricane, when has the product not been available for purchase?

Now just for making a remark about REAL capacity, when a company declares shut down for maintenance it does not count for or against capacity in their weekly inventory report so a company can legally make a claim that they are running 96% capacity with 4% in shut down but in reality they are truly running at 92%. Straight from the top analyst mouth at the EIA.

But I was describing actual throughput. There has been a fairly steady increase in barrels of oil refined for the past decade. Not enough increase, but a steady increase.

[tobyhill]

"when has the product not been available for purchase?"

I was being sarcastic, there's always been supply but based on every gloom and doom forecast there shouldn't be. I don't believe that any industry should make record profits based on rigged or merely speculative market. This hurricane only further provided proof that this sector in the market lives in fantasy land because the prices skyrocketed for consumers immediately although the increase in energy cost was for October contracts. Now that prices are subsiding, the consumers are not seeing the same rate of drop in prices.

[Black Tooth]

$3 gas -- is it here to stay?

What a depressing thought.

[KateatRFM]

Gas prices in Toronto have dropped below $1 per litre today. I think the "price gouging," er, gas crisis has ended in the glare of media spotlights.

For now.