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K&N Dilemma

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Here is the article KDRABIK is referring to.
Dave

OPEC Reported in Agreement to Cut Oil Production by 5% http://www.nytimes.com/2001/01/17/business/17OIL.html

January 17, 2001

By NEELA BANERJEE

VIENNA, Jan. 16 The Organization of the Petroleum Exporting Countries is expected to announce a decision on Wednesday to reduce
production by more than 5 percent in hopes of propping up world oil prices, key officials of the cartel indicated.

OPEC's leaders will convene here to issue a formal decision, but oil ministers from several member nations said that an agreement
had already been reached for the first production cut in two years.

The Saudi Arabian oil minister, Ali al- Naimi, told the Dow Jones news service that OPEC would "probably" cut output targets by 1. 5 million barrels a day to steady the market and avoid a "precipitous fall in the price or a precipitous rise in the price. " The Kuwaiti minister, Saud Nasser al-Sabah, confirmed that plan.

The meeting, OPEC's fourth in six months, is taking place solely because of "the decline in prices," he was quoted as saying, "and
we have to take the decision to rectify the prices. "

On news of the anticipated cut, crude oil for February delivery rose 24 cents a barrel on the New York Mercantile Exchange, to
$30. 29. In part, this subdued market reaction reflected that OPEC leaders had been talking about reducing production for two weeks, after crude oil futures prices fell as much as 30 percent in December.

The economies of the OPEC countries are almost entirely dependent on oil revenue, and the fall in prices rattled these countries,industry analysts said. A few months earlier, OPEC members had thought that $22 to $25 was an attractive price for a barrel of oil on world markets; most now seek $25 to $30 a barrel.

The cutback in production would most likely take effect in February, amid a significant slowing in United States and Asian economies. American officials are particularly concerned that a steep increase in oil prices could push a weakened economy into recession.

For its part, OPEC has argued that a cut in production would prevent a glut in oil and avert further declines in prices resulting from a 3. 6-million-barrel-a-day increase in output by OPEC nations late last year. OPEC has rejected the idea that a production cut now would hurt the economies of importing nations.

Energy Secretary Bill Richardson met over the weekend with OPEC leaders to argue for a measured approach to the fall in oil prices.
"We advocated having no cut at all," Mr. Richardson said on Monday after his meetings, "but we recognized there might be some cut. We advocated that the cut be incremental, so that there would be no
jolt to the market. "

The oil market's full reaction is expected to become evident in
the next few days. Last week, traders said that any cut greater than 1. 5 million barrels would cause a significant rise in oil
prices. Indeed, some price hawks at OPEC, like Kuwait, Iran and Qatar, had called for cuts of two million barrels a day or more.

People close to Mr. Richardson's talks said it appeared that the Americans managed to persuade Saudi Arabia, the leading producer,
to favor a smaller cut, one still acceptable to other members. That decision appears to have led to the consensus to reduce production by 1. 5 million barrels a day.

Industry experts noted that the agreement might actually result in a lesser reduction of a million barrels a day given the
expectation that some OPEC nations eager to take advantage of higher prices would exceed their quotas.

OPEC's past efforts to micromanage the oil market have often failed. And even if prices were to hold steady for now, other important factors could drive them higher as the planned cuts in output take effect.

For instance, if European countries or the United States experienced severe snaps of cold weather in February or March, the
demand for heating oil would be expected to jump and to drive up prices. And Iraq, ever unpredictable, has from time to time taken
its oil exports off the market. More such surprises, as other cartel members reduce their output, could push the futures price of
oil sharply higher once again.
 
I think that diesel prices have been way too high for the past 18 months. It still amazes me when I drive past EVERY filling station and see diesel fuel costing more than premium unleaded gas. The US cannot count on OPEC and we are foolish to believe that we can. They will gouge us any way they can. All they have is oil and they use their sole commodity to their advantage. Can you really blame them?

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CJ in RSM, CA
2001 Dodge Ram 2500 SLT Quad Cab, 6spd,ETH,4x2,4. 10 Limited Slip, Trailer tow hitch, long bed
 
GOOD! Think about it. We will now have a president that is willing to do something about our need for OPEC oil. With this cut back we will see prices go up again. The people of this country will then support US production. OPEC could be cutting off its nose. Now if Algore would have got into office this would be real bad. We need something to light a fire under most Americans to put presure on the government to do something, and with a president that will sign on to the cause thing could get better in the long run.
 
I kind of agree with Moto. The problem that OPEC faces is that with the American economy slowing down the rest of the world will need less oil. Soon the smaller opec nations will be producing more to gain a bigger piece of the pie--it's all happened before. The Arabs have never been smart bussiness men.

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2001 3500 HO 6 spdHD 4x4 Quad SLT 2BG Silver Metallic Tow Group,Camper Special 3. 54, western nerf bars, Towing 99 Damon Challenger 5ver 31' Need :Guages, aux fuel tank,exhaust brake, tow mirrors & Cb radio.

2000 Dodge Intrepid R/T. Wife loves it.
 
if the price of oil dropped 30% in the last couple of months, why didn't the price at the pumps?? another good question... why is diesel more expensive that gasoline? diesel is a less refined, dirter fuel, it should be cheaper!!! that is why diesel engines gained such popularity many years ago because it was a cheap fuel for trucks, boats and trains, not to mention the powerful engines that it fueled. i also don't belive that the always stated answer is taxes, it is my understanding, that non-commercial (personal use) diesel is taxed the same as gas. WHY IS IT MORE EXPENSIVE?????

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Jeremy Kern
1999 2500HD 4x4 QC,SB, ISB, 5spd, 3. 54LSD, 33x12. 50 cooper STT's Denver off-road bumper with Ramsey RE12000, PIAA series 520, Rancho RS9000's, heavy ft. springs, JVD Torque Enhancer, DiPricol boost and pryo gauges, and a bunch of other little things! www.geocities.com/phrn30 for pics!
 
I can't believe it but Today at the Flying J - in Troutdale Oregon (Flyingj.com) I paid 1. 39 - it's 1. 15 with the PUC Permit. BUT every other place i go - it's in the high 1. 60's. This may not be cheap where you are - but ity's darn cheap here... .
 
The reason diesel is higher than gasoline is simple: The oil companies are subsidizing the price of gasoline with diesel. Think about it - most diesel users have to use it - the railroad industry, trucking industry, barge industry, agriculture, etc. The government gave their thumbs up to this when they deregulated the oil industry. It used to be that the oil industry could only charge based on what a product cost to refine and deliver. (There are higher road use taxes on diesel, but they are a small part of the problem. ) In order to keep Joe Consumer quiet at the gas pumps, he is paying for his cheap gas everytime he goes to the grocery store. Those of us who just happen to love diesel fumes are paying a penalty for driving efficient vehicles. Lets face it, the government and oil industry don't really want us driving efficient vehicles, or this wouldn't have happened. It will come as no surprise to me someday when it is revealed that the auto industry, oil industry, and government have been in bed together to keep more efficient vehicles from hitting the road. Ray

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01 QC LWB 5 spd, trailer tow pkg, camper pkg
 
ray,

i have to kindly disagree with you about the government wanting less efficient vehicles. my brother is a mechanical engineer and works for the government testing ULEV's (ultra low emission vehicless), hybirds, and other types of super efficient vehicles that are available in europe and japan. there are also alot of vehicles like VW's TDI Diesel engine that are not availble here because they do not meet emmision standards. this tells me that the government actually cares too much, which increases research and development, thus increasing the base price of vehicles. i firmly believe that if the public would cry and organize, we would find out that the oil tycoons and companies have very well padded wallets at our expense... i think the term is called suttle, controlled price gouging!



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Jeremy Kern
1999 2500HD 4x4 QC,SB, ISB, 5spd, 3. 54LSD, 33x12. 50 cooper STT's Denver off-road bumper with Ramsey RE12000, PIAA series 520, Rancho RS9000's, heavy ft. springs, JVD Torque Enhancer, DiPricol boost and pryo gauges, and a bunch of other little things! www.geocities.com/phrn30 for pics!
 
I am amazed at how much my aux tank has changed my buying habits. We live in a small resort/tourist/retirement community. Diesel here is 149. 9 to 165. 9. 22 miles away its 139. 9 or when I go to OK. it's 129. 9. I tank up and run for weeks. Have you seen the diamond plate alum. combo tanks in the Northern Tool Catalog. DOT approved 90 gal. 499 bucks. That means I can turn PHX. to pick up an RV and not have to buy their high priced fuel. You start saving 20-30 cents per gallon and it does not take long to pay for a tank. Mi dos pesos... ... ...

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2001 2500 QC, ETH/DEE,4:10s, LSD, EZ with elbow(25PSI) Boost/Pyro Guages, 4" Turbo back, BD Brake,Mag-Hytec Cover, Kleen Wheels, Energy Release, 70 gal. fuel, 20K Reese. 22,000 miles on 12/19/00 (RV Dealer)
 
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