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Gold/Mining/Energy : Oil & Gas Price Economics -- Ignore unavailable to you. Want to Upgrade?

To: jackie who wrote (88)	4/21/1999 10:22:00 PM
From: Rod Copeland	Read Replies (1) \| Respond to of 350

Jack, I would add a thought. It is obvious the accounting for barrels is far from being accurate. This problem has been exacerbated by the huge volumes of crude as consumption has increased over the years. The problem will only grow as time marches forward, unless more accurate accounting techniques are put in place. The missing barrels are nothing more than what accountants refer to as a "squeeze" figure to cure an accumulation of errors. (IMHO) What all of this does, is to bring to the forefront the issue of accounting for the massive volumes being moved around the world in very small (relatively) quantities and numerous locations. The accounting for all of this on a daily basis, is a huge undertaking if done accurately. It isn't being done accurately at the present. As a result "paper" barrels are being traded with erroneous information causing unrealistic fluctuations in the price of crude based on this bad data. What can be done? I don't know, but I would sure like to see domestic crude purchaser prices based on something other than the NYMEX. Keep Smilin' Rod.