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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory
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To: russwinter who wrote (67818)8/9/2006 10:47:46 PM
From: 8bits  Read Replies (2) of 110194
 
"But $2 a barrel is just the beginning of BP's
shut-down bonus. The Alaskan oil was destined for the
California market which now faces a supply crisis at
the very height of the summer travel season. The big
winner is ARCO petroleum, the largest retailer in the
Golden State. ARCO is a 100%-owned subsidiary of
British Petroleum.

BP could have fixed the pipeline problem this past
winter, after their latest corrosion-caused oil spill.
But then ARCO would have lost the summertime
supply-squeeze windfall. "

Well many refiners aside from BP will have a windfall but I don't buy the conspiracy part... refiners function on long term contracts and have to make adjustments when the type of crude they process changes. BP will now have to go to the market place to buy spot oil at a premium. Also what is to guarantee that Arco can be adequately supplied from the BP refineries with the pipeline shutdown...? You can't profit from the shortage if you don't have product to sell.

Palast can be entertaining but I don't think he knows the oil business, with the BP refinery explosion last year it seems more likely that BP has a very poor maintenance record as opposed to conspiring to push up the price of gasoline:

chron.com
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