To: Chgogal
“Oil pipeline leaks are allowed in California?”
You completely missed the point I was making. Yes, even a small leak turns into a “mountain out of a molehill” situation. My point was the whole industry then takes advantage of this exaggerated “mountain” and price fixes industry wide.
44 posted on
10/22/2023 4:30:10 PM PDT by
Openurmind
(The ultimate test of a moral society is the kind of world it leaves to its children. ~ D. Bonhoeffer)
To: Openurmind
Nope. You are repeating an urban myth that has no base in fact. If you really worked in the industry’s, you would know what your saying is a urban myth from the 1970s
There is not a word for truth in your postings
52 posted on
10/22/2023 6:12:41 PM PDT by
MNJohnnie
(Don't blame me, my congressman is MTG!)
To: Openurmind
Producers have to sell their oil. That means contracts are entered into. The buyer will determine if they require a firm supply or an interruptible supply and will pay accordingly. The producer needs to sell their product to make a profit and promises to deliver the product at a delivery point, a time and at a price agreed to by both parties. The contracts are binding and enforceable on both sides. The only way a producer can renege on the contract is when a Force Majeure event occurs. Ditto for the buyer. If a refinery blows up obviously the buyer cannot accept delivery and declares Force Majeure. If a rig fails the producer will declare Force Majeure. Non delivery and non acceptance of product is not a usual business practice. That would mean contracts are broken and one party is very unhappy.
Natural Gas Producers and pipelines declared Force Majeure en mass one winter in the 90s because field supply and pipeline infrastructure froze. We up north were SOL. The neighboring utility took my companies supply as it passed through its territory to keep its distribution system pressurized. That forced my company to pull unauthorized gas off another pipeline at great cost to keep its distribution system pressurized. It took years to work through that Force Majeure event.
Please document your small leaks that became molehills and when price fixing occurred. Thank you.
57 posted on
10/22/2023 7:45:12 PM PDT by
Chgogal
(Welcome to Fuhrer Biden's Weaponized Fascist Banana Republic! It's the road to hell.)
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