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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Wharf Rat who wrote (1310)	10/21/2005 12:25:49 PM
From: Maurice Winn	Read Replies (2) \| Respond to of 218584

<Uh, uh; supply of refined product is tight because of increased energy demands from China and India. We are at the point where demand is outstripping supply. Get used to it.> I don't see how demand can outstrip supply. People pull up to the gas station in their SUV, gawp at the price per gallon. Put in enough to drive to the bicycle, or Segway shop, or shoe shop, then drive home and park the SUV. They put a "for sale" sign in Google or eBay. Somebody buys it for their children to play in in the back yard. When somebody pulls up to the service station, or the 747 needs refueling, or the ship needs another bunker, the product is there. There are big signs advertising product. So demand is obviously not outstripping supply or the tanks would be empty. The tanks are not empty. The wells are pumping, the refineries are churning it out flat out. It's party time in the oil business. Thank goodness for the war in Iraq. It keeps a LOT of competing oil off the market. When we wonder why something happens, we should see who benefits. Demand is too low. Except that in the greenhouse effect world, demand for CO2 is too high. The plants can't get enough of the CO2. They are emptying the atmosphere faster than we can fill it. Down here in NZ, there is no greenhouse effect. The place is freezing. I think another ice-age is on us. It's cold, wet, windy and dark [I woke too early and will have another nap shortly]. Come on you Yanks. Get out there in your SUVs and burn more gas. Mqurice

To: Wharf Rat who wrote (1310)	10/21/2005 4:13:49 PM
From: Elroy Jetson	Read Replies (3) \| Respond to of 218584

We reached the point where demand out-stripped oil supply in 1978. Just a soon as people got used to it, oil prices collapsed. Now we've reached the same point again and I can't wait to see what happens. You Wharf Rats had better get ready for a surprise. As for refined products, not even one American refinery has been selling their products to India or China. People who believe we need to build new refineries in America, because of increased demand for refined products in India and China, are as crazy as they sound. China has built new sour oil refineries, as well they should since their demand has increased so greatly and sour oil is all they can get their hands on. America's slow and steady increase in demand for refined product has long been met with refinery expansion, while closing small inefficient refineries. There has been a spike in demand for refined products from the wars in Iraq and Afghanistan, but no oil company in their right mind would undertake a multi-billion dollar expansion over a six year period to expand refining capacity just to meet a temporary dislocation from the Bush Wars. If Bush thinks different, he can build a refinery himself in a military base as he ranted in his Sad State of the Nation speech. The war in Iraq has also sharply reduced oil output due to sabotage. Expect to see oil prices decline for that reason alone when the Bush War ends .