Evidence Of Supply Shortages In Oil Production

[usair_begins_with_u]

In mid 2002, there was over 6 million barrels per day of excess production capacity, but by mid 2003 the excess was below 2 million. During much of 2004 and 2005 the spare capacity to produce oil has been under one million barrels per day. The reality is, 1 million barrels per day is not enough spare capacity to cover an interruption of supply from almost any OPEC producer. In a world that consumes over 80 million barrels per day of petroleum products that adds a significant risk premium to crude oil price and is largely responsible for prices in excess of $40 per barrel.

As you'd expect, there is an inverse relation between supply and price. I believe this supply/demand issue to be the root cause of higher global oil prices.. You can clearly see this whenever you hear about a hurricane or significant insurgency in an oil producing country, the oil futures market reacts and the price of oil jumps up.

Until there is an increase is supply, and or decrease in demand, the market will continue to react, and yes sometime over react to any news that relates to the supply of oil.

 

[FlyUs]

This was reported last Sunday in the NewYork Times Magazine.

 

[javaboy]

oil production could triple tomorrow and the price of oil might i say might drop but gasoline nor aviation fuel will not drop as the refineries are currently at 102% all that would happen is that crude would be stored (left in ground) basically an increase in oil does not equate to more petrochemical products until more refineries are built or consumption drops

This was reported last Sunday in the NewYork Times Magazine.

[post="292536"][/post]​

 

[SpinDoc]

oil production could triple tomorrow and the price of oil might i say might drop but gasoline nor aviation fuel will not drop as the refineries are currently at 102% all that would happen is that crude would be stored (left in ground) basically an increase in oil does not equate to more petrochemical products until more refineries are built or consumption drops

[post="292549"][/post]​

So... Who's to blame for this artificial
shortage of refinery capacity? Is it YOU?
Is it ME? He11 NO. It's the oil companies
who have been allowed to merge and
have complete control the market. If they
could get away with it, they would cut
refinery capacity even more than they
have, just to force price increases and
raise profits. It's sick how this has been
allowed to happen in the last 4 years.

Enough already. Off with their heads.

 

[JS]

So... Who's to blame for this artificial
shortage of refinery capacity? Is it YOU?
Is it ME? He11 NO. It's the oil companies
who have been allowed to merge and
have complete control the market. If they
could get away with it, they would cut
refinery capacity even more than they
have, just to force price increases and
raise profits. It's sick how this has been
allowed to happen in the last 4 years.

Enough already. Off with their heads.

[post="292583"][/post]​

It's not just the last 4 years. Refineries have not been built for a long time.

The worst is the Californicators who make it not only impossible to build a refinery, but make it more expensive to refine so that they can have slightly less smoggy air while continuing to live in a la-la land of unsustainable land use patterns. Dumb asses.

 

[insp89]

So... Who's to blame for this artificial
shortage of refinery capacity? Is it YOU?
Is it ME? He11 NO. It's the oil companies
who have been allowed to merge and
have complete control the market. If they
could get away with it, they would cut
refinery capacity even more than they
have, just to force price increases and
raise profits. It's sick how this has been
allowed to happen in the last 4 years.

Enough already. Off with their heads.

[post="292583"][/post]​

You're right on the money....This shortage is orchestrated, I can still picture President CARTER on TV with his sweater on spreading the old Oil Shortage routine...

 

[JayBrian]

So... Who's to blame for this artificial
shortage of refinery capacity? Is it YOU?
Is it ME? He11 NO. It's the oil companies
who have been allowed to merge and
have complete control the market. If they
could get away with it, they would cut
refinery capacity even more than they
have, just to force price increases and
raise profits. It's sick how this has been
allowed to happen in the last 4 years.

Enough already. Off with their heads.

[post="292583"][/post]​

It's been a lot longer than four years, it has been about 30 years since the last refinery was built in the United States. With all the environmental and NIMBY issues not to many want to take up the fight to build a new one.

Here is an article about someone trying.

http://www.corpwatch.org/article.php?id=12227

 

[700UW]

Bring back the Windfall Profits Tax!

 

[sentrido]

They dont build "new" ones, but they have increased the capacities of existing ones by over 400%.

 

[usair_begins_with_u]

This was reported last Sunday in the NewYork Times Magazine.

I wouldn't wipe my rear end with that newspaper.. when you want the unadulterated truth, come talk to UBWU my friend.

 

[jimntx]

Those of you who voted for Shrub for Prez are simply reaping the crop that you sowed. Since the Bush & Cheney money comes from the oil industry, why are you surprised that they are allowed to do whatever they want to do?