tom_kat wrote: heard that most of the Alaska high grade oil is going to Japan and Asia because there willing to pay more for it making oil company's more profit don't think it has anything to do with shortages.
I guess if we are exporting our black gold to other countries while we are facing economic problems at home then we should have a 100% export tax on that oil.
tom_kat wrote: heard that most of the Alaska high grade oil is going to Japan and Asia because there willing to pay more for it making oil company's more profit don't think it has anything to do with shortages ,they said that refiners are not even working at full capacity so that cant be it ether it has more to do with higher profit for those who deal in it then anything else.they should build new refinerys where weather or natural disaster wouldn't bother them as much, with all that extra profit there making. they could built a lot of them and find more oil if they wanted to.
You heard half-wrong. Yes, some Alaskan oil is sold to Asia. No, West Coast refiners are not running below capacity. All are running over 90% capacity. Yes, we need more refineries, but, no, not in my town.
Crude oil varies greatly around the world. Refineries can only process they type of oil they have the equipment to process. Changing the supply of crude oil may require millions of dollars to change the refinery equipment. Or, it may not, all depending on the crude and what any particular refinery is set up to handle. We do not want all West Coast refineries to be set up for only North Slope Alaskan Crude oil that flows through one pipeline and one terminal in Valdez, Alaska. They need to also be able to handle crude oil from California, Indonesia, maybe Venezuela, maybe Ecuador, and other sources.
The U.S. produces about 5,100,000 barrels of crude oil a week. We import about 14,000,000 bbls a week of crude oil and refined fuels daily. There is no way we can drill enough oil wells to replace our imports any time soon. Yes, the Bakken oil formation in the Dakotas is huge and will be a huge help in reducing our oil imports. This takes time. Time to fully explore and drill. Time to build pipelines. Time to build refineries where they need to be built.
People want immediate drilling in ANWR. If they start drilling today, it'll take 10 years for production to begin, and full production in 20 years will supply about 3% of the U.S. oil needs. 3% ain't nothing, but it isn't a solution.
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tom_kat wrote: ....they said that refiners are not even working at full capacity so that cant be it ether it has more to do with higher profit for those who deal in it then anything else....
No, West Coast refiners are not running below capacity. All are running over 90% capacity.
People want immediate drilling in ANWR. If they start drilling today, it'll take 10 years for production to begin, and full production in 20 years will supply about 3% ofthe U.S. oil needs. 3% ain't nothing, but it isn't a solution.
I can vouch for the refineries being at over 90% cap.--there are 4 down here in the LA region, 5 if we count the one that had a fire 5 years ago, and they're all running 24/7. As far as research, it's gotten much better than it used to be...but where I live, they used to have over 30,000 oil wells, all producing....and they couldn't get it out fast enough....now the pumps are controlled from a central office by telephone line and computer, they turn it on when they need oil out of that wellhead, they used to run 24/7, now they may run 3 hours a day, or 3 hours a month!
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Possibly the stock market code could be "911". Supply & Demand you know.
jesterdog wrote: Wouldn't Shell or whoever just pump it out of the ground and charge us the same $126 a barrel that they charge everybody else, no matter where they pump it from?
What am I missing?
Yes they do! We live in Alberta, Canada, home of the Ft McMurray tarsands and we pay the same as anyone else for crude. And then, we pay aout a buck more per gallon of gas then typical US prices because of local taxes.
As said by other posters, it is speculation that drives the price of crude. On the other hand, fuel prices are driven by crude price AND the oil companies reducing refining capacities to inflate prices. In the old days a company would find ways to reduce prices and sell more, no longer, not when it comes to todays energy marketing.
jesterdog wrote: Wouldn't Shell or whoever just pump it out of the ground and charge us the same $126 a barrel that they charge everybody else, no matter where they pump it from?
What am I missing?
Yes they do! We live in Alberta, Canada, home of the Ft McMurray tarsands and we pay the same as anyone else for crude. And then, we pay aout a buck more per gallon of gas then typical US prices because of local taxes.
As said by other posters, it is speculation that drives the price of crude. On the other hand, fuel prices are driven by crude price AND the oil companies reducing refining capacities to inflate prices. In the old days a company would find ways to reduce prices and sell more, no longer, not when it comes to todays energy marketing.
looks like you have done your home work on modern day players in crude/fuel pricing. We have a new up and comming oil reserve(Hunton) in OK and is producing oil/gas/large amounts of salt water in the Carney field. Yep, you gueseed it. Crude from the new field will go for world market prices. The days of old time supply and demand market system are over.
Jim
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Giving the oil companies additional taxs break for drilling for oil when it is selling for $126 a barrel is akin to giving a farmer additional tax breaks for corn when if it were selling for $100 a bushel. Makes no since.
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