I pulled some pieces together on oil discussion over past few days, culminating with petition to replenish Strategic Petroleum Reserves.
Cheryl
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TESTIMONY: Lawrence Gershwin, National Intelligence Officer
Global Implications of Y2K January 20, 1999 Excerpt
house.gov
All countries will be affected, to one degree or another, by Y2K-related failures. Problems in one country or sector can have widespread consequences because of interdependence between sectors worldwide.
We have few indications that countries are undertaking contingency planning for recovery from Y2K failures ... Foreign countries trail the United States in addressing Y2K problems by at least several months, and in many cases much longer. Y2K remediation is underfunded in most countries:
Time and resource constraints will limit the ability of most countries to respond adequately by 2000 ... Global linkages in telecommunications, financial systems, air transportation, the manufacturing supply chain, oil supplies, and trade mean that Y2K problems will not be isolated to individual countries, and no country will be immune from failures in these sectors ...
We are focusing increasingly in our study of foreign Y2K problems on those critical sectors that directly affect US interests. These include, among others, foreign military systems, trade, and oil production and distribution, all of which I will elaborate on ...
DEFINITELY WORTH READING ALL OF HIS TESTIMONY.
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From: flatsville
Yep Cheryl...That was the part of Gershwin's testimony that produced the involuntary
cold chill. Those predicting "bump in the road" status keep overlooking those "global
linkages" issues in "those critical sectors that directly affect US interests." I'm certain
they think oil comes from the gas station the same way small children think milk comes
from the grocery store.
And speaking of oil, BHI's research department indicates that working US based oil rigs were at a historic low in 1998 with something in the neighborhood of 500 versus 4500 in place during 1982? the historic high. (BHI has been keeping a rig count since 1944.) It's doubtful that gas will come from the gas station...those damn global linkages again.
I vaguely recall someone from CAT testifying before congress last year that if disruptions abroad lasted more than six weeks the corporation was effectively out of business. And if any corporation should know it's CAT given the hit they've taken with the Asian Crisis. Other multinationals have muttered similar statements in SEC documents (KO knows this too)...those damn global linkages again.
US Oil Reserves
fe.doe.gov
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From: Ken Salaets
These are the same reserves that were proposed to be sold during the balanced budget struggles of years past. I can't recall the outcome of that initiative. Anyone else have info on this?
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From: Orbit
I remember reading a few months ago (can't find the link) that the US decided not to replenish the reserves and save the extra $$$.
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This is a petition for the U.S. government to fill up, during 1999, the Strategic Petroleum Reserve as a safety reserve should either the foreign-based or our domestic-based petroleum facilities suffer Y2K-caused interruptions.
What is feared are interruptions significant enough to cause shortages that could cause the nation's demand to outstrip the available supply of petroleum in 2000, or failing that, that might cause petroleum to be more expensive than need be. In addition, a private-sector operated community-based fuel reserve proposal is advanced.
If filled up, the Strategic Petroleum Reserve's full capacity would provide the U.S. protection against the loss of 135 days of crude oil imports. However, according to the SPR May 1998 position paper, the nation currently has around 67 days of crude oil import protection due to the current national policy to deplete the Reserve.
ourworld.compuserve.com
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