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To: Webster Groves who wrote (101115)	5/19/2008 12:03:16 AM
From: 8bits	Respond to of 206360

I specifically asked what would happen if the military's mideast consumption of refined products (principally jet fuel) were returned to the domestic market, not the world's. Effectively, there is no real difference, oil is a fungible commodity and we buy in a global market. That said to satisfy your idea that such oil would only return to the US market and would not be available to the global market, in the last year US domestic oil consumption has decreased by 4 times the amount you suggested would be returned to the US. Where have oil prices gone in the last year?

To: Webster Groves who wrote (101115)	5/19/2008 12:09:05 AM
From: schrodingers_cat	Respond to of 206360

"I specifically asked what would happen if the military's mideast consumption of refined products (principally jet fuel) were returned to the domestic market, not the world's. It does make a difference, because the increase would overload domestic storage and distribution capacity, with a consequent steep tumble in prices. " Nonsense. 100kb/d will make very little difference to a 21 million bbl a day domestic market, and even less in an 80 million bbl a day global market. The price impact is less than $5 /bbl. (my guess) This idea the military fuel consumption for the Iraq war is the reason behind high prices is just a piece of leftist propaganda. The very same people would have you believe that adding 1 million bbl/day from ANWR would have a trivial impact on prices.

To: Webster Groves who wrote (101115)	5/19/2008 12:13:39 AM
From: 8bits	Respond to of 206360

PS - Read the article again, they talk about barrels of fuel, not crude oil. Your comparison suggests Spindletop spewed out jet fuel. Here's what the article said: "“Military fuel consumption for aircraft, ships, ground vehicles and facilities makes the DoD the single largest consumer of petroleum in the U.S” So clearly my comparison is correct since the article specifically states that the DOD is largest single user of petroleum. Considering several refining companies are looking into selling parts of their operations and operated at a loss for the last quarter the much talked about global shortage of refining capacity appears to be over. What seems to be in short supply (globally) is crude oil since a large portion of a barrel of oil when extracted is refined into fuel. PS: I know very well that jet fuel does not come out of a well.