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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: Real Man who wrote (18337)	3/6/2009 7:29:48 PM
From: ggersh	Read Replies (1) \| Respond to of 71456

I think supply is fine, although I'm no expert. And profitability wasn't a problem a few years ago when Oil was under $40. Maybe Canada is unprofitable here, but I would think as they develop costs would go down.

To: Real Man who wrote (18337)	3/8/2009 3:38:25 PM
From: Giordano Bruno	Respond to of 71456

A pipeline that carries Canadian oil from Chicago has nearly overwhelmed the storage capacity in Cushing, a major oil hub where nearly 10 percent of the nation's oil is stored, said Cody Bannister, a spokesman for the Oklahoma Independent Petroleum Association. "There's a whopping amount of oil (in Cushing)," Bannister said. "The big issue is takeaway capacity. If there is sufficient takeaway capacity added to send it away to other places, it's really not a big issue. "But if you've got a bunch of stuff coming in and nothing going out, you're going to get backlogged." As a result, independent oil producers in Oklahoma, who produce 96 percent of the crude oil in the state, along with producers in Kansas, Illinois, Texas and other states are seeing the price of domestic oil sold at Cushing being driven down below market prices, said Harold Hamm, chairman and chief executive officer of Enid-based Continental Resources. "Everything that's fed into the Cushing market is basically disadvantaged," Hamm said. "It's not just Oklahoma, although Oklahoma is taking the brunt of it." msnbc.msn.com