Pipelines running strong

[Shrimpy]

Just a note to all TDR members, ALL of the major pipeline systems I deal with are RUNNING. Nothing to my knowledge is S/D. Although obviously, anything in New York area is subject to being Shutdown.



On a side note, it is not the Oils who are driving the price up right now. It is the individual owners, and outright speculation. Be very thankful that the commoditiy markets are closed or it my be a different story. Just because a station says "Exxon or BP Amoco or Shell does not mean they are the proprieter of the station. Most are leased to people who run them and use the brand. However, it does not mean that the Super Majors are not licking their chops on this National tradgedy. I know enough sleezy traders and managers that if they thought they could make points off of this they would.



Good luck to all and..... God Bless America!!!!!

 

[Okie-Go]

Good to hear. I do not deal with a certain amount of people. I usually don't go in these stores if I can't understand them when they talk. Just mho.

 

[QRTRHRS]

I read something before the bombing about the refineries switching over capacity to make heating oil which would be effecting gas prices. Any comment on that?

 

[chuck3]

Thanks for the info. Shrimpy at least thats good news.

 

[gitchesum]

Just talked to work.

The ship channel is also still open down here. Oil moving just as it always has. The line from our terminal to the refinery is also running full speed.

Just like Shrimpy said above, the prices you pay at the pump are determined by the stores and their suppliers. I've voiced my displeasure to the local suppliers about the price going up here. Now I'm only talking about 5 cents a gallon but that is still too much to go up in one day. If your experiencing price gouging, get some hard eveidence and present it to your state's Attorney General.

 

[Shrimpy]

Qrthrs, I have not heard about that. I bet heating oil may be a little tight this winter because based on events I witnessed during Desert Storm. The Iraq's invaded in Aug. , Pectan's (Shell Oil) refinery in Houston (Deer Park) switched over to maximum JP-5 production about mid september and did not stop until late February. JP-5 is military spec. jet fuel. Not every refinery can make it, usually only the larger ones are equiped to make it. When the Military gets ready to rock and roll, find someone who works at a large refinery and ask them what it being made (if they know). I am willing to bet 100 to 1, that at least one refinery on all coast (Atlantic, Gulf of Mexico, and Pacific) has already, or will be switching to jp-5 in a matter of days.



When they run jp-5 it cuts back on the other products produced, diesel, gasoline and heating oil. They don't stop making it, but it is restricted. In a perfect market the other refinery's will pick up their production to meet demand. But with probably 5 - 10 less refinery's in the U. S. since Desert Storm, it may be a challenge to keep the market satisfied in all areas. I don't know for a fact there are 5 -10 less refinery's just an educated (ddooohhh) guess.



I look for prices to definently start to creep back up for several reason's:

1. Refinery's are entering traditional turnaround season. Summer driving done, lull before heating oil production starts.

2. But, most refinery's have been running full tilt since this time last year and have not been shutdown for maint. in a while.

3. if one or two of the large (200,000 plus bpd) have to come down, watch out. Prices will rise by the day.



This may not be gospel, but just an observation. Gitchsum had a very good observation about about the plant where he works. Most crude brought in to U. S. is from Mexico and South America. At least to the gulf coast region.



Good luck and ... ... . GOD BLESS AMERICA!!!!!!!

 

[Bigsaint]

Shrimpy, do you do any work with the guys at Delta Gulf ? They are in are town now, upgrading a gas line. Never met a nicer bunch of folks.



Scott W.