Our refineries are operating at only 78.3 percent capacity and we are still paying $4

[JDiepstra]

I got the article below off AOL.



Oil prices slip even after inventories US shrink By MADLEN READ, AP

posted: 1 HOUR 10 MINUTES AGOcomments: 0PrintShare

Text SizeAAANEW YORK -Oil prices closed slightly lower in jittery trading Wednesday, as the strengthening dollar and signs of a slowing economy outweighed inventory drops and word that OPEC would cut production.

The Energy Department's Energy Information Administration said that crude inventories fell by 5. 9 million barrels last week compared to the previous week, and that gasoline inventories fell by 6. 5 million barrels. The EIA also reported, however, that inventories of distillates — which include heating oil and diesel fuel — fell by a lower-than-anticipated 1. 2 million barrels.

Refineries were running at a low 78. 3 percent of their capacity last week, the report said.

 

[BimmerAgent]

'Canes

Interesting they didn't mention that several Gulf refineries and rigs were shut down last week due to hurricane fears. Bruce

 

[JDiepstra]

I suppose it is. I heard it was only for a day or so though. Plus, don't we send a lot of out oil overseas anyway?

 

[Gary - K7GLD]

Earlier, OPEC spokesmen, trying to disassociate themselves from uncontrolled,runaway crude oil prices, blamed speculators - and openly stated crude oil SHOULD be priced at about $65 a barrel.



But NOW, since crude oil prices are dropping, OPEC is planning to cut back oil production to force oil prices to stay at the $100 level.



Both OPEC, AND big oil would FAR rather make the SAME profit at 80% or less production, than at 100% production - and has anyone else noticed that the "poor, misjudged" oil companies STILL made record profits - EVEN AS USA and world-wide consumption dropped significantly?



What happened to that old tired claim that those "poor, misjudged" oil companies only made the same few pennies profit per gallon, regardless of crude oil prices?

 

[TFucili]

Hurricane aside, they have been scaling back refining to keep inventories tight, and try to boost refining margins. If the can make the inventories show a significant decline it gives the market jitters, and oil goes up. Go figure.

 

[EGroeneveld]

But you forget that they are a business. We cannot force them to keep producing if they don't want to.



Would you make doctors, attorneys, accountants, etc... work a 40 hour week if they choose not to?

 

[JDiepstra]

But you forget that they are a business. We cannot force them to keep producing if they don't want to.



Would you make doctors, attorneys, accountants, etc... work a 40 hour week if they choose not to?

These companies are given drilling rights by the gov. I would imagine that somewhere in the contract it says they have to produce and can't just sit on it.

 

[TFucili]

But you forget that they are a business. We cannot force them to keep producing if they don't want to.



Would you make doctors, attorneys, accountants, etc... work a 40 hour week if they choose not to?

They have the right to gauge production as they see fit. The problem is that the weekly inventory report then gets used as a tool to spook the market, and the consumer gets beat over the head with it. You don't see the "experts" saying that the inventories are down, and it is expected because refiners are throttling back. You see them proclaim "peak oil" and all of their other doom and gloom rhetoric to inflate the price. I am for a free market, but not for rigging the table, or loading the dice.

 

[Gary - K7GLD]

These companies are given drilling rights by the gov. I would imagine that somewhere in the contract it says they have to produce and can't just sit on it.

If they AREN'T required to actually produce, they SHOULD be - simply tying up energy sources, then SITTING on them to prevent competition from developing it is damaging to our country and society. As I understand it, most of those oil-bearing leases are on Government (TAXPAYERS!) lands - and should be managed in a way that BENEFITS taxpayers to the max!

 

[AClayton]

In Germantown,Md. ,diesel is closing the gap on reg. unleaded by only $. 10.



$3. 79 for diesel

$3. 69 for unleaded



Hope this trend continues!!

 

[BigPapa]

Diesel's @. 20 cheaper than gas here in Middle Tenn. There are a lot of stations around here that don't have any gas at all, though. Anybody know what's going on?



Scott

 

[Tractorat]

Well, oil's back up to $100 again. Can anyone say $150 ? or $200 ? I think we'll be talking about that again very soon.

 

[JDiepstra]

Well, oil's back up to $100 again. Can anyone say $150 ? or $200 ? I think we'll be talking about that again very soon.

No we won't. My . 02. With all the financial whatever taking a dump, people are putting their money where it is safe. Not speculating.

 

[RGardner]

Actually, that is part of the reason it is back to $100, that and the hurricanes.

 

[BigPapa]

There are a lot of stations around here that don't have any gas at all, though. Anybody know what's going on?



Scott

Today there are stations everywhere here in Nashville with no gas and the ones that do have long lines. A woman just came in the shop and said she waited almost 2 hours in line, another guy said there was a fight at the BP he was at, I saw lines out on the street with guards in orange vests directing traffic at an Exxon right off the interstate downtown. It's got the gasser's tore up. I haven't seen any problem with diesel and most of the stations where I live, about 20 miles north of Nashville, have gas and no lines as of this morning.



What's going on?



Scott

 

[GHarman]

Diesel is still $4. 27 at Conoco in Arvada, Colorado. GregH



DidI mention, we have a Conoco refinery in Denver?