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Gold/Mining/Energy : Meteor Technologies -- Ignore unavailable to you. Want to Upgrade?

To: CBurnett who wrote (1986)	9/16/2000 10:48:09 AM
From: The Barracuda™	Read Replies (1) \| Respond to of 2127

The problem w/ oil is that the Saudi's have about 2MMbbl/day additional capacity. World consumption is about 75MMbbl/day and growing. The Saudi's 2MM spare capacity is only 2.6% of total world consumption. Due to low prices (1 1/2 yrs ago I was paying 0.85/gal- now 1.36), the Saudi's did not invest or do much maintenance of their oil facilities. The Saudi's DO have enough reserves to bring the oil market to its knees when they are able to bring additional production on line. But there is another problem-Oil Tankers. There are currently about 3200 Oil Tankers worldwide and they are all (mostly) in use. Environmental regs, that unleash religious jihad’s against anyone or company that are involved in an oil spill, have caused the major oil companies to reduce their tanker tonnage. Texaco got rid of their tankers in toto. Shell Oil refuses to send any of its tankers into US waters. So increased demand for oil will be delivered how? They don't want the risk. The public sent the oil companies a “message” and the oil companies said "we hear you and will comply-tankers are evil." So, in summary, the oil market has two problems: 1) Insufficient production capacity 2) Insufficient tanker capacity