US running out of room to store oil; price collapse next?

Posted by $ nickursis 9 years ago to Economics
35 comments | Share | Flag

Wow, and the price of gas has gone up 80 cents in the last three weeks in Oregon. Can you say "corruption"? What a load of Sh@#!
SOURCE URL: http://news.yahoo.com/us-running-room-store-oil-price-collapse-next-171025276--finance.html


Add Comment

FORMATTING HELP

All Comments Hide marked as read Mark all as read

  • Posted by $ Susanne 9 years ago
    Oil prices - like any other commodity - can (and do) have artificial prices attached.\ separate from the laws of supply and demand. Add to this the havoc wreaked on the world economic stability if oil dropped to $20/Bbl. I seriously doubt that no matter how much storage we lack (and remember, there are also underground salt dome storage fields) the "League of Economic Controllers" will allow the price of oil to drop beyond a certain point.

    Remember - not unlike Rome, we are, truly, a Hydraulic Empire - the hydraulic media may be different, but the effect is much the same...

    Reply | Mark as read | Best of... | Permalink  
    • Posted by Technocracy 9 years ago
      +1 Susanne

      Actually the sheer numbers of parallels with ancient Rome that are popping up is disturbing.
      Reply | Mark as read | Parent | Best of... | Permalink  
      • Posted by $ Susanne 9 years ago
        Not just the empire model, but it's leadership as well... or to paraphrase, "All hail Nerø"...

        Interesting that while the Republic lasted 500 years until it became an Empire (actually a dictatorship), it continued (under one form or the other) until finally conquered by the ottomans in the 1400's (tho don't tell some of the "ancient" Italian neighbors we had - a lot of them still laud the guy who tried to bring it back in the late 1920's to mid 1940's... who "made the trains run on time, got the mail delivered, increased manufacturing capability and did away with the 'riff-raff', or so they claim...)
        Reply | Mark as read | Parent | Best of... | Permalink  
    • Posted by $ KSilver3 9 years ago
      There was a perfect example of those artificial pricing influences in that article, and it was a throw away line that most people won't even notice. The line about the crude exports being restricted by federal law. There is nothing left in this country that isn't restricted by federal law. I took a polI-sci class in college, and was lucky enough to have a strong conservative professor. She showed us a video, and I have been trying to find it ever since, but don't remember the title. It basically followed an average person throughout an average day, and showed all the things that were regulated or restricted by the federal government. Everything from the FCC label on the clock radio, to the import regulations on his underwear. If anyone knows of this video, I would love to be able to find it again.
      Reply | Mark as read | Parent | Best of... | Permalink  
  • Posted by richrobinson 9 years ago
    Supposedly the recent spike was a knee jerk reaction to some damage at a California refinery. I can't understand how the economy could be doing so well but we aren't using more oil??? That doesn't make sense. One more reason to question the so called "recovery".
    Reply | Mark as read | Best of... | Permalink  
    • Posted by BradA 9 years ago
      1st, I'm suffering with the $1+ spike in gas prices over the last 3 weeks out here in California. It is a result of one refinery taken off-line by an explosion, another by planned maintenance and yet more by a union strike. I've seen estimates that 17+% of Calif's production has been affected which is enough to move the marginal supply / demand chart into the imbalance we're experiencing.
      However, I place the real cause for this with my fellow idiot residents and politicians who have refused to allow any significant additional refining capacity to be added in at least 30 years resulting in a maddeningly tight supply/demand reality. In other words, we Californians have brought this upon ourselves and as such I suppose we deserve it.
      Finally, WRT oil consumption vs economic growth, given the historically high price for California gas, we, as individuals have adjusted our buying habits and opted for more fuel efficient vehicles which has allowed us to make due with our limited refining capacity.
      So, it all still comes down to supply and demand.
      Reply | Mark as read | Parent | Best of... | Permalink  
      • Posted by $ 9 years ago
        Oregon has passed LCSF, which will add 20 cents (they say) to a gallon of gas, so we can ruin our engines with ethanol, and buy additives for small engines so they can run. Our representative tried to justify it with a song and dance about "how hard it is" and the recent 70 cent increse pushed him to vote yes. I responeded with:

        Sir,

        Thank you for the very kind and detailed reply, for which you have my respect. I understand your position and respect you for it.

        I would like to point out though that considering other "sources" for gasoline to try to fight the business of price gouging, is a false flag, in that you are just changing one slave driver for another. It is obvious that the current spike is not based on the false statements of "it's all about oil prices", now they have invented "explosions", "maintenance"(which has been used before several times for the same effect), and "union issues". The explosion one is a temporary shutdown, the maintenance is planned well in advance to occur just when they are either switching blends or something else happens (coincidence is such a funny thing, and the oil industry seems to have defined it to a high art), and the union contracts cannot be a big surprise, in that they know when they will expire, and know if they have a potential to casuse issues, and so should be able to extend contracts or move dates. It is so tiring and aggravating to listen to the continual lies and manipulation of the oil industry, only to have them report record profits over and over, and it seems their greed knows no end. So, now you have handed them yet another tool in their price gouging tool box, they will just gouge more and more and blame it on the stinking government who are "forcing them" to abuse the people with higher prices because of their onerous rules. Do you really think it will be 20 cents? How about 30-40 cents when you include all their markups and stories. Thanks to attempts by government to "correct" these issues, we will soon be just like California for gas prices. They too, sought to "regulate for the good" and have just blackmailed all their people into Big Oil service.

        The biggest issue is that Oil is not the only industry wanting to "drive profits". Many other basics are in the same boat. One reason I refuse to fly anymore, they gouged me for the last time, and they justified all on the cost of fuel, then when it dropped, you never saw one of their "add ons" dropped because they didn't need them. This will end the same way.

        I will email you and the Senator my thanks, with a picture, when the price hits $5.00 a gallon, I am betting before June 1.

        Respectfully,

        They will never, ever, EVER learn, even when they discover it was our humiliate goober headed governors girlfriend who got 200,00 to push this crap in Salem (for which he was forced to resign as they do a criminal investigation), pushing this crap. Oregon will now join California in having no gas, and what we have will be unaffordable. Democrats= How to single partily destroy an economy.
        Reply | Mark as read | Parent | Best of... | Permalink  
        • Posted by sumitch 9 years ago
          Don't forget that that unimaginably brilliant brain in California, Pelosi, floated the idea that while gas prices are down over the country, now would be the great time to add to federal gas taxes. The government already makes more money on a gallon of gas than the producers, refineries, pipelines and service stations do.

          What, me Worry?

          Alfred
          Reply | Mark as read | Parent | Best of... | Permalink  
      • Posted by richrobinson 9 years ago
        Excellent point about the refining capacity. I hope terrorists don't figure it out. The refining reductions that resulted for the reasons you stated caused a spike like this--Hard to imagine how high it would spike if there was some coordinated attacks at multiple refineries.
        Reply | Mark as read | Parent | Best of... | Permalink  
        • Posted by sumitch 9 years ago
          It's worse than that. First, there is plenty of storage if we want to use it. If there wasn't any storage available, the pumps would quit going up an down. They're still moving here in Texas. Second and probably more important is that due to federal regulations over the last 30+ years, many refineries that needed normal maintenance plus trying to meet the ever growing pile of government rules and regulations have made the decision that it is too expensive to bring older refineries up to regulations and/or build new ones, so they have simply shut them down and didn't build any more. We have lost millions of gallons of refining capability and even if we had it, given that his nibs has vetoed the XL pipeline and chased at least half of the drilling platforms out of the Gulf, we'd have to buy it from his buddy in Saudi Arabia. You know, the one he bowed to. Remember when he was elected the first time he said he saw no problem with $5/gallon gasoline and that he was going to bankrupt the coal industry. Wait till they decide to shut down the coal mines rather than meet the new regs. plus his plans for his energy schemes, you ain't seen nuttin' yet. And congress fiddles while Obama plays golf.
          Reply | Mark as read | Parent | Best of... | Permalink  
        • Posted by $ 9 years ago
          Ohh, don't even whisper that. A chain link fence is no defense and anything else is too expensive, would drive down profits, stock options and bonuses. Blow up a refinery? No problem, just double the price on what is left. Executive Logic.
          Reply | Mark as read | Parent | Best of... | Permalink  
  • Posted by wiggys 9 years ago
    what we need are 1960's gas guzzlers with 400 horse power engines and 4 barrel carburettors, cars that weigh in at 4000 pounds. that should help get the inventory down. also if the government got off of the back of people who have the desire to start a business or expand a business. or siply remove them selves from dictating what we should do, but you get it.
    Reply | Mark as read | Best of... | Permalink  
    • Posted by sumitch 9 years ago
      What I'd give to have my '67 GTO with the engine changed to the 454. 12 miles to the gallon when it was parked. Lord how I loved the roar of that 4 barrel and dual pipes with glass pack mufflers.

      Life was good.
      Reply | Mark as read | Parent | Best of... | Permalink  
  • Posted by RonC 9 years ago
    Gee, it was just 2008 when one party was running on drill baby drill and use all of the energy systems available for energy independence. And, the other party was saying go green, because it will take 10 years to discover enough oil to make a difference, and it will just be a waste of time to start now.

    Anyone who has ever done a worthwhile thing knows that the longest journey starts with the first step. They also know that each day you wait is another day later in reaching your goal.

    So now, without the help of the government, without the planning of the Energy Commission, and certainly without the EPA there is enough crude to break the monopoly of the OPEC cartel.

    Supply and demand really does work. as do incentives. What a country this could be if the regulators went on strike and let the producers produce the things people want and are willing to pay for!
    Reply | Mark as read | Best of... | Permalink  
  • Posted by Temlakos 9 years ago
    The price of motor fuel went up because the workers at several refineries went on strike and forced them to shut down.
    Reply | Mark as read | Best of... | Permalink  
    • Posted by $ 9 years ago
      Yes, but I would bet that it was an expiring contract. Since they know that is coming they have the knowledge to negotiate, but being reisistant to anything makes them go on strike, and they just raise their prices and go on...same thing with the Longshoreman, until it started to hurt Wal Mart and Co, who called their politicos and told them to go fix it. Funny, if a small business owner goes on strike the only perosn who loses is themselves.AS strikes again...
      Reply | Mark as read | Parent | Best of... | Permalink  
      • Posted by sumitch 9 years ago
        Another reason to vote for Scott. He broke the union in Wisconsin and I'll bet he could do it at the federal level. Maybe like Reagan did with the air traffic controllers.

        Don't want to work? Fine, take some more time off. Do a little fishing. Put in that garden you've been thinking about. Sit in the sun have another glass of tea (while you have some money left) There are plenty of people looking for jobs.
        Reply | Mark as read | Parent | Best of... | Permalink  
  • Posted by salta 9 years ago
    We also had a sudden hike in gas prices in Canada recently, with no cause from the C$ price of the commodity. The reason here has been the fact that the upstream profits have dropped away, so companies have decided to increase the profit margin at the pumps. I would expect that extra margin to decrease again (if prices stabilized here), because over time the upstream activity will have to become more efficient once again (free markets working as they should). At over $100 oil, they've had several years without any real need to be very efficient.
    Reply | Mark as read | Best of... | Permalink  

FORMATTING HELP

  • Comment hidden. Undo