Attention: TDR Forum Junkies someone is not telling the truth ,here we go just in time for summer!!!!!!!!
Governors see snag in area oil prices
Producers getting $22 to $35 less a barrel since end of February
By JIM GRANSBERY
Of The Gazette Staff
The heavy discounting of oil prices at the wellhead in a three-state region is a short-term crisis and a long-term problem.
Wyoming Gov. Dave Freudenthal on Wednesday afternoon said the crisis needs to be solved quickly or the oil is going to stay in the ground at a time when the country really needs it.
Freudenthal and Gov. John Hoeven, of North Dakota, at the invitation of Gov. Brian Schweitzer, hosted a meeting of regional oil producers in Billings. Sharp price drops of $22 to $35 dollars a barrel since the end of February and beginning of March have oil producers scratching their heads.
Billings producer Mac Clark said someone ought to "make the refiners pay a fair price. If you take the oil, pay for it. There is something inherently wrong with taking the oil (at the lower price). Quit cheating us. " Only one refiner identified himself at the meeting and gave a short presentation for his company, Suncor Energy, which has two refineries in Denver and which gets crude from Canada and the region.
"That is a tough question," said Tim Kirwin, referring to the discounted oil, which has not resulted in lower gasoline prices, but he added he was not in a position to address company financials.
"We take no joy in the differentials," he said. He did explain his company's refining situation and the $400 million investment the company made to refine high-sulfur crude and meet government demand for ultra low-sulfur diesel. He said that in recent weeks regional oil prices have come up. He suggested fair pricing would be there in the long term and that his company was committed to the business.
"We are here to stay," he said.
While regional oil prices are not directly pegged to the international spot or futures price, the regional posted prices in the three states are not what oil producers are getting.
Freudenthal said pricing of oil was beyond the control of governors and suggested that the necessary political pressure needed to be sent to the federal level, but he tacitly acknowledged that might not provide immediate help.
Rep. Dennis Rehberg, R-Mont. , said Wednesday night that he wants to know "who is gouging whom, where the money is going and what can be done about it. "
He said if President Bush is serious about reducing the country's dependence on foreign oil, then "producers in Montana need pipelines to put their oil in and get fair prices, as well. "
About 80 people from the industry joined the governors and their aides for an overview of the maze of pipelines, domestic and Canadian, that move oil from the producing regions to the refineries and urban distribution centers.
One of the major movers of oil is Enbridge Energy of Houston. It is solely a pipeline company and neither produces nor refines oil in the United States.
Its pipeline moves 80,000 barrels a day -- its capacity -- from the region, and during the first quarter of this year moved more than capacity by tweaking the system, said Denise Hamsher, who handles public, government and regulatory affairs for Enbridge. In the short term, by increasing pumping capability and adding new pipeline, the company can move an additional 30,000 barrels of oil out of the region this summer.
She noted that pipelines are regulated by the Federal Energy Regulatory Commission as common carriers and are responsible for moving everyone's oil. Some preference is given to long-term customers ahead of new customers, she said.
In the long-term, Enbridge plans for several other longer pipeline segments that diffuse distribution of the increased production from the Canadian tar sands.
The oil development in Canada will become a huge factor in the U. S. supply in the near term.
Schweitzer said there would be no Alberta bashing from him because Canada will only become more important to the United States as oil supplies from around the world become threatened by political volatility.
Hoeven was somewhat optimistic that by July 1, the discounts "will begin healing up" as Enbridge moves more oil and the Suncor refineries in Denver come back online -- they were down for retrofit and then suffered a serious fire.
No new refineries have been built over the past 30 years, and permitting and building of pipelines take time.
Hamsher said the three governors could help by contacting governors in Illinois and Wisconsin to impress on them the necessity of more streamlined processes for permitting pipelines to carry crude to refineries in the Midwest.
Published on Thursday, April 20, 2006.
Last modified on 4/20/2006 at 12:45
http://www.billingsgazette.net/ read this under crude oil hits 72. 00 then eases
same paper says oil prices at 72 . 00 per barrel , what the ?????
people we cant have it both ways
off to get my new veg oil pump
cj hall
Governors see snag in area oil prices
Producers getting $22 to $35 less a barrel since end of February
By JIM GRANSBERY
Of The Gazette Staff
The heavy discounting of oil prices at the wellhead in a three-state region is a short-term crisis and a long-term problem.
Wyoming Gov. Dave Freudenthal on Wednesday afternoon said the crisis needs to be solved quickly or the oil is going to stay in the ground at a time when the country really needs it.
Freudenthal and Gov. John Hoeven, of North Dakota, at the invitation of Gov. Brian Schweitzer, hosted a meeting of regional oil producers in Billings. Sharp price drops of $22 to $35 dollars a barrel since the end of February and beginning of March have oil producers scratching their heads.
Billings producer Mac Clark said someone ought to "make the refiners pay a fair price. If you take the oil, pay for it. There is something inherently wrong with taking the oil (at the lower price). Quit cheating us. " Only one refiner identified himself at the meeting and gave a short presentation for his company, Suncor Energy, which has two refineries in Denver and which gets crude from Canada and the region.
"That is a tough question," said Tim Kirwin, referring to the discounted oil, which has not resulted in lower gasoline prices, but he added he was not in a position to address company financials.
"We take no joy in the differentials," he said. He did explain his company's refining situation and the $400 million investment the company made to refine high-sulfur crude and meet government demand for ultra low-sulfur diesel. He said that in recent weeks regional oil prices have come up. He suggested fair pricing would be there in the long term and that his company was committed to the business.
"We are here to stay," he said.
While regional oil prices are not directly pegged to the international spot or futures price, the regional posted prices in the three states are not what oil producers are getting.
Freudenthal said pricing of oil was beyond the control of governors and suggested that the necessary political pressure needed to be sent to the federal level, but he tacitly acknowledged that might not provide immediate help.
Rep. Dennis Rehberg, R-Mont. , said Wednesday night that he wants to know "who is gouging whom, where the money is going and what can be done about it. "
He said if President Bush is serious about reducing the country's dependence on foreign oil, then "producers in Montana need pipelines to put their oil in and get fair prices, as well. "
About 80 people from the industry joined the governors and their aides for an overview of the maze of pipelines, domestic and Canadian, that move oil from the producing regions to the refineries and urban distribution centers.
One of the major movers of oil is Enbridge Energy of Houston. It is solely a pipeline company and neither produces nor refines oil in the United States.
Its pipeline moves 80,000 barrels a day -- its capacity -- from the region, and during the first quarter of this year moved more than capacity by tweaking the system, said Denise Hamsher, who handles public, government and regulatory affairs for Enbridge. In the short term, by increasing pumping capability and adding new pipeline, the company can move an additional 30,000 barrels of oil out of the region this summer.
She noted that pipelines are regulated by the Federal Energy Regulatory Commission as common carriers and are responsible for moving everyone's oil. Some preference is given to long-term customers ahead of new customers, she said.
In the long-term, Enbridge plans for several other longer pipeline segments that diffuse distribution of the increased production from the Canadian tar sands.
The oil development in Canada will become a huge factor in the U. S. supply in the near term.
Schweitzer said there would be no Alberta bashing from him because Canada will only become more important to the United States as oil supplies from around the world become threatened by political volatility.
Hoeven was somewhat optimistic that by July 1, the discounts "will begin healing up" as Enbridge moves more oil and the Suncor refineries in Denver come back online -- they were down for retrofit and then suffered a serious fire.
No new refineries have been built over the past 30 years, and permitting and building of pipelines take time.
Hamsher said the three governors could help by contacting governors in Illinois and Wisconsin to impress on them the necessity of more streamlined processes for permitting pipelines to carry crude to refineries in the Midwest.
Published on Thursday, April 20, 2006.
Last modified on 4/20/2006 at 12:45
http://www.billingsgazette.net/ read this under crude oil hits 72. 00 then eases
same paper says oil prices at 72 . 00 per barrel , what the ?????
people we cant have it both ways
off to get my new veg oil pump
cj hall
