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Oversupply still hurting oil producers in Rockies ( A regional oil glut)
Denver Post ^
| 08/21/2007
| Steve Raabe
Posted on 08/23/2007 3:36:50 PM PDT by saganite
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To: saganite
We can hoe. But the enviro-whacko’s will do whatever they can to stop it. They want oil independence, but only by reducing the use of oil, not by producing more.
21
posted on
08/23/2007 4:22:21 PM PDT
by
vetsvette
(Bring Him Back)
To: Nervous Tick
Oil prices are based on a “standard” which is West Texas Intermediary (WTI)Crude (raw unprocessed oil). Crude or crude oil varies in price depending on sulfur and other components that cause a crude oil to vary from the chemical characteristics of West Texas Intermediary. Crudes other than WTI are priced inferior to WTI.
To: infominer
There’s more than that at work here. The lack of pipeline capacity and refining capacity in that region forces the producers to sell at a much lower price. Even heavy oil sells for more than the western producers are getting.
23
posted on
08/23/2007 4:35:35 PM PDT
by
saganite
(Billions and billions and billions----and that's just the NASA budget!)
To: saganite
24
posted on
08/23/2007 4:38:48 PM PDT
by
shield
(A wise man's heart is at his RIGHT hand;but a fool's heart at his LEFT. Ecc 10:2)
To: 353FMG
$2.47 in urban central AZ.
To: AdmSmith; Berosus; Convert from ECUSA; dervish; Ernest_at_the_Beach; Fred Nerks; KlueLass; ...
26
posted on
08/23/2007 5:04:24 PM PDT
by
SunkenCiv
(Profile updated Monday, August 20, 2007. https://secure.freerepublic.com/donate/)
To: SunkenCiv
Build a refinery out there.
To: Ernest_at_the_Beach
28
posted on
08/23/2007 6:33:08 PM PDT
by
Publius6961
(MSM: Israelis are killed by rockets; Lebanese are killed by Israelis.)
To: saganite
Yep. Lack of pipeline cpapcity has been hurting prices up here for a while. Discounts of $25-30 dollars a barrel are not uncommon, and Canadian crude coming down hurts the producers here in the long run. It also provides some disincentive to drill for what had been the premium mid-continent oil, priced at one time on par with WTI. It is not the quality or refinability of the oil, just the capacity to transport it.
29
posted on
08/24/2007 12:34:20 AM PDT
by
Smokin' Joe
(How often God must weep at humans' folly.)
To: Nervous Tick
I must not be smarter than a fifth grader, because it makes no sense to me why Colorado oil would be trading at such a discount to the world price. Can anyone enlighten me?Not enough local refining capacity/competition. It costs too much to ship the crude out, hence the glut.
30
posted on
08/24/2007 12:39:58 AM PDT
by
roamer_1
(Build the fence. Enforce the law.)
To: infominer
Crudes other than WTI are priced inferior to WTI.Not the Bakken crude from Montana and North Dakota, at least prior to the transport problem.
If you check back the problem is not one of inferiority to WTI, it is lack of transport and refining capacity.
Historically, prices for WTI and Bakken crude were on par until the tar sand crude started coming in and bumped the Bakken crude off the pipeline.
The Canadians oil is low gravity, heavy crude, the Bakken oil is 35 to 37 gravity sweet crude with a lot of aromatics.
31
posted on
08/24/2007 12:42:04 AM PDT
by
Smokin' Joe
(How often God must weep at humans' folly.)
To: Smokin' Joe
Dorgan is making comments again about the geological survey due out next year. Maybe when the survey hits the newsstands there will be some impetus to get the infrastructure built out there. Hopefully, even a refinery or 2. There’s certainly plenty of open space for it!
32
posted on
08/24/2007 4:15:37 AM PDT
by
saganite
(Billions and billions and billions----and that's just the NASA budget!)
To: Ernest_at_the_Beach
I’m sure the oil companies are behind this fiendish plot. ;’)
33
posted on
08/24/2007 9:46:30 AM PDT
by
SunkenCiv
(Profile updated Monday, August 20, 2007. https://secure.freerepublic.com/donate/)
To: SunkenCiv
"At the peak of the oil surplus in February 2006, some Rocky Mountain producers were forced to sell their crude for $34 a barrel - a gap of nearly $26 from the prevailing national price then of about $60. "
What...??? ...FORCED??? ...They were afraid it would SPOIL?????
34
posted on
08/25/2007 3:35:45 AM PDT
by
Seadog Bytes
(OPM - The Liberal 'solution' to every societal problem. (Other People's Money))
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