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Date:         Fri, 18 Mar 2005 19:57:28 -0700
Reply-To:     jimt <camper@TACTICAL-BUS.INFO>
Sender:       Vanagon Mailing List <vanagon@gerry.vanagon.com>
From:         jimt <camper@TACTICAL-BUS.INFO>
Subject:      Re: Got Gas?
In-Reply-To:  <e5b20aa24776e2e0cf657379a5687758@knology.net>
Content-type: text/plain; charset="ISO-8859-1"

On 3/18/05 19:22, "Jim Felder" <felder@KNOLOGY.NET> wrote:

> But Stan, I don't think this would do any good. The oil companies don't > have their prices set by the government, they have their prices set by > supply--usually--and demand--lately.

Price is set by demand and costs of the barrel and the Windfall Profits Act from the 1970s.

OPEC recently met to increase production levels. The problem is that many members are already pumping over quota and at their max that the lines can handle. One countries oil minister said he could easily put out another 30 percent more oil if he had the pipe lines to handle it. His pipe lines were built on estimates for 15 years. His pipelines are only about 5 years old. 3 years to build new pipe lines.

Also from the recent meeting--- Opec members Iran, Qatar, Venezuela and Algeria have come out in favour of keeping output steady, with Algeria's minister saying last week that Opec had no spare capacity to lift quotas.

Everybody that can is already exceeding quotas unofficially to take advantage of the high prices. This should have been lowering the price. Instead the demand is such that even that the over 600,000 barrels a day is not making a dent. Everybody is holding their breath waiting for northern america and northern europe to come out of winter which should lower the demand for fuel oil. However they also noted that many consuming countries have used up their reserves and even that may not be much help for prices.

Saudi is the only place with any reserve capacity left. They are not going to release that capacity because of what would happen if some other producers went off line and there was no capacity to pick up that loss.

It is indeed a world crisis looming. It isnt so much that we are running out, it is that we are using it faster than it can be pulled out of the ground. •••••••••••••••••••••••••••••••••••••••• 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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