Date: Fri, 4 Mar 2005 18:02:27 -0700
Reply-To: jimt <camper@TACTICAL-BUS.INFO>
Sender: Vanagon Mailing List <vanagon@gerry.vanagon.com>
From: jimt <camper@TACTICAL-BUS.INFO>
Subject: Re: gas prices going up.....more...
In-Reply-To: <vanagon%2005030419145121@GERRY.VANAGON.COM>
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On 3/4/05 17:11, "Daniel L. Katz" <katzd54@YAHOO.COM> wrote:
> john:
>
> surely you jest!
>
> petroleum is produced and consumed as fast as possible. that is the way
> the world works. wells being capped while oil companies wait years for
> prices to rise is a myth. dry wells and wells in fields proven too small
> to be worth building pipelines and other infrastructure (to get the oil
> out) are examples of vaild reasons wells are capped. an oil company could
> not attract shareholders if it spent millions drilling a well and then
> received no return on investment - it would be much wiser just investing
> the milions in something else - especially given the possibility that a
> potentially producing well might not produce if left idle for too long.
> no, the truth is that the price increases are real, while the conspiracy
> is not.
>
> dan
//from the news wires//
China, the world's second-largest oil consumer, has managed to set a new
full-year record for fuel oil imports in just 10 months, a clear sign its
appetite for refined oil products will continue unabated next year.
China's exports of gasoline, meanwhile, slid 29 percent in October from a
year ago to 375,312 tons, as it cut overseas shipments of motor fuel to help
meet demand at home.
All that gas getting used??? Just ask GM and VW where their profits have
come from for the last several years. The oil refiners donΉt slow
production at any time. They only change the mix of what is being "cracked"
in the towers. Maintaining as much of a balance as they can between
gasoline, diesel, oil, and hundreds of other products so as not to cause any
shortages if possible. They of course are tied to the price on that barrel
that reaches them. Demand is the ripper. Note that increase on china's
imports. The price increases over the last couple years have actually got
some small pumpers in this state running again. The only time a well gets
closed down is when it costs more to pull it out than it is worth. The big
oil producers actually maintain some wells that are losers most of the year
but when the short term price hikes kick in they become profitable for a
short period again. Plus they help maintain a balance in supply. The next
trick is that not all crude oil is the same. That means the mix of what you
can get out of it changes drastically.
jimt
Planned insanity is best.
Remember that sanity is optional.
http://www.tactical-bus.info (tech info)
http://www.westydriver.com
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