Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: isopatch who wrote (74418)	9/24/2000 11:22:50 AM
From: el_gaviero	Respond to of 95453

Thanks JQP and others for thoughts on the relationship between oil refinery capacity and crude storage. My problem was with the assertion that we have a bottleneck in refinery capacity. If reported numbers are accurate, clearly we do, but the problem is more complicated because of other facts, such as: increased OPEC production and rising tanker rates. The story that pulls the facts together (of high refinery utilization, low crude storage, increased OPEC production, increased tanker rates) is a worldwide increase in demand, as noted by JQP. In effect, what is happening, imho, is that the increase in worldwide demand means that we in the USA cannot import the refined product that we need, and are forced to rely on inadequate domestic capacity. Perhaps this is obvious to you all, but it helps me to see the obvious, and think about its implications, e.g., if Asia or anywhere else tanks, goes into recession, etc. etc, we’ll be able to get all the refined product we need, and another roller coaster ride takes place in the oil patch. Also, I think the releases from the SPR will have a bit more of an influence on price than most of you all seem to think will be the case.