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Gold/Mining/Energy : coastal caribbean (cco@) -- Ignore unavailable to you. Want to Upgrade?

To: Howard C. who wrote (1175)	12/10/1999 1:03:00 PM
From: Edwin S. Fujinaka	Read Replies (2) \| Respond to of 4686

I couldn't find your link, but I did see this story on Steve Forbes joining the Democrats with a call to release the oil reserves to drive down the price of oil. George W. called for more exploration. Do you suppose George W. meant that we should send out entrepreneurs to look for oil and then block drilling and development when they find any? Anyway, the strategic oil reserves total only 565 million barrels which is less than the estimate for the recoverable oil at the St George Island site. Anyway here is the comment on releasing the oil reserves: msnbc.com Forbes supports selling oil from strategic reserves to lower prices ASSOCIATED PRESS COTTONWOOD, Ariz., Dec. 8 - While presidential hopeful Steve Forbes presents himself as the only true conservative with a chance to win the Republican nomination, he has found an issue in common with Democrats - oil. Politics Front Page Interactive: Guide to Presidential candidates FORBES SAYS HE would open the country?s strategic oil reserves in order to fight a recent climb in crude oil prices. ?It?s sitting doing nothing,? Forbes said during a stop on his two-day bus tour through Arizona Tuesday. ?We can use it to cut prices,? he said. ?You?d see that spot price drop overnight.? Such a sale was first sought last month by Sen. Charles Schumer, D-N.Y., as a response to what he called economic warfare by the Organization of Petroleum Exporting Countries in reducing output to push up the price of oil. Schumer was concerned that supplies being held back by OPEC would cause a run-up in prices, notably of heating oil, during the winter. Northeastern areas of the United States are particularly dependent on heating oil. ?It's sitting doing nothing. We can use it to cut prices. You'd see that spot price drop overnight.? ?Steve Forbes Presidential hopeful In addition to tapping the reserve, Forbes said he also would open oil fields in Alaska to increase domestic production. Forbes said he is prepared to take action regarding the Arab oil producing countries? price increases unlike GOP front-runner George W. Bush. During Monday night?s debate in Phoenix, Forbes asked Bush what he would do about rising oil prices. Bush said he would encourage American oil companies to expand their exploration efforts and production while supporting the use of other energy sources such as natural gas. America?s strategic oil reserve totals about 565 million barrels of oil stored in salt caverns in Texas and Louisiana. President George Bush - George W. Bush?s father - tapped the reserve to protect the domestic gasoline supply during the Persian Gulf War when oil from Iraq and Kuwait was unavailable. The reserve was created to make sure the U.S. military would be able to fight a war if cut off from imported oil supplies and to protect the country against the economic shock of supply disruptions. But it has been used for other purposes. Congress ordered the sale of oil from the reserve in 1998 as part of a deal to balance the federal budget. The U.S. is now in the midst of replenishing the strategic reserve to previous level of 590 million barrels. Forbes dismissed the idea that the reserve should be held back only for times of military crisis or a complete cutoff from other suppliers. ?If oil were cut off from the United States, the reserve would last a few weeks,? Forbes said. That?s not enough to fight a full-scale war, but it is enough oil to help control artificial price hikes imposed by foreign countries, he said.

To: Howard C. who wrote (1175)	12/11/1999 1:29:00 AM
From: Edwin S. Fujinaka	Read Replies (1) \| Respond to of 4686

I just saw this article in the Arizona Star for December 10th. I guess it is the article that you linked to that was in the Tampa Tribune yesterday. I'll just post it here, but it seems to me that the fundamental way to have oil prices go down is to increase the supply of oil. George W. seemed to be on the right track with the notion of more exploration, but it is hard to see how a company like Coastal Petroleum is being encouraged to explore for oil through any Government action. Very hard. The Administration could reduce consumption. how about no driving on alternate days. How about lowering thermostats to around 55 degrees (kinda like the 55 mph speed limit). Hey, how about a blanket 55 mph limit. That might save childrens lives too. A 40 mph limit might save even more. I lean towards a rule that no heating should be used during daylight hours. (That would work for Arizonans, but I don't know about Chicago or New Your in December <G>). Of course these proposals are only kidding. Friday, 10 December 1999 U.S. vows to take action to contain rising oil prices WASHINGTON (AP) - The Clinton administration yesterday warned that ``dangerously high' oil prices could affect economic growth and said it was prepared to intervene if costs continue to soar. Energy Secretary Bill Richardson said little about what actions might be taken, and some analysts said the administration's options are limited largely to jawboning friendly producing nations. Richardson told reporters he wanted to send a message to the oil markets that the administration will take ``whatever steps are necessary' to ensure continued economic growth and to protect U.S. consumers. One option would mean releasing oil from emergency stockpiles. Analysts said that could prompt a backlash from other consuming nations - as well as producers - because the oil is supposed to be used to ease supply interruptions rather than to manipulate prices. As the cost of oil inched toward $27 a barrel on world markets, Richardson said crude prices were ``drifting into dangerously high levels.' ``I am prepared to recommend whatever steps are necessary to protect the American consumer and the American economy,' he said. ``We're not at that stage. . . . (But) we're almost in a danger range, and I want to send a message.' Oil analysts said the United States has limited ability to affect prices, especially with the continued healthy economy and the expected increase in demand for oil during the winter. After dropping to 12-year lows, the cost of oil has more than doubled during the past year from under $11 a barrel to nearly $27 a barrel. The spot price for light sweet crude was $26.44 per barrel at noon yesterday on the New York Mercantile Exchange. The price rebound has been attributed largely to a decision in March by the oil-producing nations to limit production and Iraq's recent halt in exports. Higher fuel prices have affected everything from electricity and shipping costs to airline ticket prices. The higher crude prices are the primary reason that gasoline and heating oil are costing more. Last week, the average gasoline price was $1.27 a gallon, nearly 40 cents higher than a year ago, according to the Energy Information Administration. Richardson refused to discuss what price might trigger a U.S. action or what options the administration is considering. The government never has tapped the Strategic Petroleum Reserve, which now holds 580 million barrels, to dampen prices, although on occasions it has sold some oil to pay for operating the reserve. More likely Richardson will step up efforts to get some producing nations - particularly Venezuela, Mexico and Saudi Arabia - to increase production if prices continue to climb. -------------------------------------------------------------------------------- The Energy Information Administration offers information on oil prices and energy statistics.