Oil Hits $70+ a barrel!

Whale Rider

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Crude oil prices jump to 70 dollars per barrel!

NEW YORK, Aug. 29 (Xinhuanet) -- Crude oil prices hit above 70 dollars a barrel Monday as Hurricane Katrina forced companies to shut down their platforms in the Gulf of Mexico.

On the New York Mercantile Exchange, light and sweet crude oil futures contracted for October delivery rose as much as 4.67 dollars to 70.80 dollars a barrel shortly after the trading floor was opened. US National Hurricane Center said Hurricane Katrina was moving north at about 24.19 km per hour. Chevron Corp., Conoco Phillips, and Valero Energy Corp. were closing their refineries and evacuating staff. The Gulf of Mexico represented about 30 percent of US oil production and 50 percent of refinery capacity. Hurricane Ivan last September cut the region's oil output by as much as 1.4 million barrels a day and sent prices sharply higher.
 

On Your Six

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Whale Rider said:
Crude oil prices jump to 70 dollars per barrel!

NEW YORK, Aug. 29 (Xinhuanet) -- Crude oil prices hit above 70 dollars a barrel Monday as Hurricane Katrina forced companies to shut down their platforms in the Gulf of Mexico.

On the New York Mercantile Exchange, light and sweet crude oil futures contracted for October delivery rose as much as 4.67 dollars to 70.80 dollars a barrel shortly after the trading floor was opened. US National Hurricane Center said Hurricane Katrina was moving north at about 24.19 km per hour. Chevron Corp., Conoco Phillips, and Valero Energy Corp. were closing their refineries and evacuating staff. The Gulf of Mexico represented about 30 percent of US oil production and 50 percent of refinery capacity. Hurricane Ivan last September cut the region's oil output by as much as 1.4 million barrels a day and sent prices sharply higher.


Time to tap Anwar... Screw the mooses and the geese...
 

Flying Illini

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The problem isn't so much capacity as it is refining capability. Supposedly the refineries have been operating near 100% capacity for the past few months.
 

Flying Illini

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Here's what I don't get, we've got oil, just now way to refine enough for the demand. So, what does raising the prices do? It doesn't stop people from buying gas. If they wanted to slow down consumption why not raise prices to $10 a gallon. That would stop people from buying it and hence kill their profits. By just raising it to near $3 a gallon, they realize people will still buy it and use it as normal, only now they (oil companies) will realize a tremendous profit. It just doesn't make sense.
 

Green

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Interesting that we get an administration run by ex oil executives and now we have 70/barrel oil with the oil companies making unprecedented profits.
 

2LT

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Point taken...

In this case, however, I'm afraid you couldn't be more mistaken.

http://www.bartlett.house.gov/EnvironmentalProject.asp


I would --much like the majority of people unwilling to make changes/adjust to a more uncomfortable standard of living-- like to believe there's an infinite amount of something which is undoubtedly finite. Peak Oil theory is largely accepted by most familiar with the industry; none of whom can be classified as "kooks" any longer. As always, time will tell...
 

On Your Six

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turbodriver said:
Try spelling it right first.....

OK Einstein, why don't you spell it. You got my point - thanks for being a Jacka$$ Francis....
 

Dangerkitty

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2LT said:
In this case, however, I'm afraid you couldn't be more mistaken.

http://www.bartlett.house.gov/EnvironmentalProject.asp


I would --much like the majority of people unwilling to make changes/adjust to a more uncomfortable standard of living-- like to believe there's an infinite amount of something which is undoubtedly finite. Peak Oil theory is largely accepted by most familiar with the industry; none of whom can be classified as "kooks" any longer. As always, time will tell...

We dont have a supply problem. There is plenty of oil out there. What we have is a refining problem. This is what most if not all of the oil experts agree with.

It's going to take alot more than a conspiracy theorist and a politician with an agenda to convince me otherwise.
 

turbodriver

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On Your Six said:
OK Einstein, why don't you spell it. You got my point - thanks for being a Jacka$$ Francis....

Ok, Jacka$$ it's spelled....

ANWR

It's an acronym too, or didn't they teach you about acronyms.

idiot.
 

jetflyer

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Didn't we have hurricanes in the Gulf of Mexico and Refinery Outages 5-10 years ago? Why did the Oil Prices not go to $70.00.

2LT couldn't be more right.

Peak Oil is almost here.
 

Dangerkitty

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jetflyer said:
Didn't we have hurricanes in the Gulf of Mexico and Refinery Outages 5-10 years ago? Why did the Oil Prices not go to $70.00.

2LT couldn't be more right.

Peak Oil is almost here.

We also didn't have China increasing their oil consumption 25% every year either as they become more and more of a industrialized nation.

It's time for the dip$hits in DC to tell the Environmentalists to get bent and start building more refineries.
 

Crash Pad

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Dangerkitty said:
We also didn't have China increasing their oil consumption 25% every year either as they become more and more of a industrialized nation.

It's time for the dip$hits in DC to tell the Environmentalists to get bent and start building more refineries.

This is America if there was money to be made people would do it. The reason refineries haven't been built is because at a $.99 a gallon there wasn't a great margin... Now that will start to change. I know those crazy enviro pukes who have been saying for years we might want to consider using less fossel fuels... Yep they were waaaaaay Off!
 

Dangerkitty

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Crash Pad said:
I know those crazy enviro pukes who have been saying for years we might want to consider using less fossel fuels... Yep they were waaaaaay Off!

Well then if YOU want to start using less fuel then why don't you put your money where you mouth is and get out of aviation. (If you are actually involved in aviation.)

And by the way, it is FOSSIL fuels. As in dead dinosaurs.
 

On Your Six

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turbodriver said:
Ok, Jacka$$ it's spelled....

ANWR

It's an acronym too, or didn't they teach you about acronyms.

idiot.

Hey everyone, look at how cool this guy is!!!! Congrats - you're a NERD!
 

2LT

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Well, and that's the problem...

You're highlighting the depth of the issue w/ your clever remark DKitty. Unfortunately, as a society we're literally awash w/ oil and/or petroleum products. One would have to cease breathing to no longer take part in their consumption.



More to the point, the problem is fast going to become the rate with which we consume a commodity that is both finite and prohibitively expensive. Our unbridled consumption as a society will have to be put into perspective. This doesn't mean --as I think you're suggesting-- that people cease pursuing their livelihoods; at least not voluntarily. Transportation is --and most probably always will be-- vital to our national interest. What I think you're drawing attention to is the fact that many airlines simply won't be able to compete in an environment where oil is at and/or around $70/barrel. As more passenger carrying airlines fall victim to this new reality, the only option will be for the few remaining airlines to pass-on the increasing overhead cost to the consumer. And this cost will eventually turn personal travel into a thing done out of necessity and not whim. This will be the case vis-à-vis automobile travel and so on.



The point here is simple. Oil is a non-renewable resource and Peak Oil theory --whether you choose to agree or not-- is a reality which is just now beginning to manifest itself. In the short-term, whether we can mitigate the cost of oil by increasing refinery output is a naive concern. No doubt, you're correct that if we increased supply, prices would decline. The Administration today announced they're considering releasing/taking loans from the Strategic Oil Reserve. This "fix," however, is one which simply doesn't address a much larger issue. One which requires a less shortsighted imagination.
 

PCL_128

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I can't believe people actually believe this peak-oil crap. There's enough oil out there to last for 150 years. Mark my words: oil will crash to less than $40/bbl within two years. I've already taken my profits from the oil stocks I owned. I suggest you do the same.
 

2LT

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We principally agree...

PCL_128 said:
I can't believe people actually believe this peak-oil crap. There's enough oil out there to last for 150 years. Mark my words: oil will crash to less than $40/bbl within two years. I've already taken my profits from the oil stocks I owned. I suggest you do the same.


Why can't you believe it? You yourself agree in principal when you claim,"...there's enough oil out there to last for 150 years." Based upon your research, we're to assume that peak oil will be reached in 75 years. You see, peak oil is simply an industry term used to describe a point when half the world's oil supply will be exhausted. So, you disagree on the timeframe.

If you're interested in some of the data, here's a good site to start with:

http://www.petroleumequities.com/OilSupplyReport.htm
 
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