OPEC: Too late to hike June output

[Stirling Newberry]

http://washingtontimes.com/upi-breaking/20040520-105705-5181r.htm

OPEC says that it cannot boost June output, which has lead to a new spike in spot crude prices.


http://www.reuters.com/newsArticle.jhtml?type=businessNews&storyID=5208226

Reuters and other news sources are reporting that hedge funds are pushing oil and spot gasoline prices higher, as OPEC denies ability to blunt the rise in prices. Saudi Arabia has already upped its production, but this has done little to dent the surge in crude oil prices.

OPEC oil ministers agree that they can do little in the short run to stop the rise in prices.

UK Chancellor of the Exchequer has said he will press for more OPEC production.

[hatrack]

1. Whoops!!

Guess that "jawboning" didn't have the desired effect, nosiree Bob!

[RUMMYisFROSTED]

16. It used to be called the "Bully Pulpet."

And before that it was called persuasive discourse.

Now it's jawboning.

[Doug Decker]

2. CNN just had a report (5/20/05 10:35 AM pst) on peak oil...

which they predicted for 2026. This is the first I have seen of reporting of peak oil in the "liberal media" and I think the prediction is a bit optimistic. I just checked google and didn't see any new articles on this subject.

Could the truth finally be leaking out in the US?

[Geo55]

6. peak oil

http://www.peakoil.net/

[Wickerman]

3. I'm confident all that oil coming from the now free and peaceful Iraq

will push gas to 1$ (Yes, I said 1$) by November 15th.

However, ya gotta vote for Bush*. Or, sell your soul to Satan. You decide if there is any difference.

[Doug Decker]

4. Another CNN report and I found this great chart on the website...

LINK: http://www.hubbertpeak.com/magoon/

:scared:

[Geo55]

5. Too late

"Reuters and other news sources are reporting that hedge funds are pushing oil and spot gasoline prices higher, as OPEC denies ability to blunt the rise in prices. Saudi Arabia has already upped its production, but this has done little to dent the surge in crude oil prices."

The Suadis are the only ones with spare capacity...an' that only amounts to approx. 2-2.5 million barrels a day...sounds ok if it was comin' all to the USA....but spread it globally an' it ain't gonna be more than spittin' in the ocean....it's world demand folks....the party is over...Oililvis has left the building.

[hatrack]

8. "Oilvis has left the building" - ROFLMAO!!

Thanks, Geo55 - best line of the day.

[havocmom]

7. What good would it do anyway? Refinery mergers are way up so fuel

will be controlled by fewer hands here in the US. Now, there is a problem to be dealt with.

No longer worried about one world governing body. Worried about one corporation governing body.

soylent green - get used to it

[hunter]

9. How much oil can you make from a fat dead person?

Do it for America! Your nation needs you!

There will be two boxes to check on your driver's license -- organ donation, and oil donation.

Reduce, recycle, reuse...

[treepig]

15. probably about 10 gallons

based on how much you get from an "average" person via thermal depolymerization:

If a 175-pound man fell into one end, he would come out the other end as 38 pounds of oil, 7 pounds of gas, and 7 pounds of minerals, as well as 123 pounds of sterilized water.

http://www.personal.psu.edu/users/j/m/jmr250/anything_into_oil.htm

[underpants]

10. spikes in profits are driven by refinery manipulation, not crude shortages

http://www.channelnewsasia.com/stories/afp_world_business/view/81105/1...

Boom for California top oil companies with soaring gasoline prices

LOS ANGELES : As prices at the pump have soared, so have profits at California's top five oil companies, according to a study by a Los Angeles consumer group.

The study by the Foundation for Taxpayer and Consumer Rights (FTCR) compared oil company profit reports and gasoline prices over the last two years.

The five companies included in the study -- Shell, ConocoPhillips, ExxonMobil, Chevron Texaco and BP -- refine 90 percent of California's gasoline, controlling the majority of its gas stations, the group said.

The group found that in 2003, average 35 percent increase in gas prices pumped up average company profits nearly tenfold -- by 926 percent

"If pump prices stay up, then 2004 will (be) the most profitable year yet for the oil companies," said FTCR petroleum industry consultant Tim Hamilton, who led the study.

"These levels of profits are likely to continue in the West, regardless of any actions taken by OPEC (Organization of Petroleum Exporting Countries) between now and the elections, since these spikes in profits are driven by refinery manipulation, not crude shortagese said.

[havocmom]

11. Bingo! Thanks for the back-up, Underpants.

Yeah, has ANYONE heard of any shortages? Are the local gas stations running out of fuel before their next delivery? No, it is not happening. The crisis has never been explained nor has it really manifested. They raise the prices, we pay, we grumble and we look for explanations, but we pay.

ENRON engineered energy shortage in California was the test for this policy. WOO HOO, it worked AND brought about regime change. So they take it to gasoline and take it national.

Yes, I do know oil is finite. I have been conserving since way before it was cool and way before many of you were born. But I also noticed a pattern of wealthy industries buying politicians to enact legislation to hog tie R&D of alternative sources of power and fuel. You can bet those industries are working very hard to shore up ownership in anything which will be useful for future energy sources. In the meantime, they are gonna squeeze every stinking dime from us junkies as they can for their oil.

It is a finite world. They want to make sure they have all the resources and means of using them before that becomes completely obvious to the most nearsighted ditto head on the planet.

[hunter]

12. It's more complicated than that...

The oil refiners are testing the market to see what the demand curve is. This is a resaonable (and profitable!) thing to do if indeed OPEC cannot keep up with the demand. The state of California collects more taxes when the price of gasoline goes up, so they don't have any great incentive to look into this unless the demand drops significantly and gasoline tax revenues decrease...

[havocmom]

13. And since they have a GOP governor now, it's OK for state revenue to

go up so don't worry about the consumer. Yes, I know it is a very complicated issue but I am verbous enough on the outlines.

Fact is, refinery mergers are WAY up. Fewer hands on the pump makes it much easier to control the flow. That is the short version most consumers can take the time to get pissed about.

Energy is the blood of commerce in this nation. Energy companies are not behaving as good citizens. I'm all for nationalization in countries where that happens. Am thinking it might be a good thing here, but not holding my breath.

Meanwhile, private corporate intrests are working on getting ownership of water around the world. Gee, that'll be fun. Glad I will not be living much longer.

[louis-t]

14. And the BFEEE (bush family evil energy empire)

doesn't have any incentive because the richer their oil buddies get, the more money in the Repub coffers. Sure, fat Spence Abraham (no relation) came out once and feigned outrage at fuel prices and then crawled back in his hole.

[underpants]

17. Bloomberg report on mergers (Clinton AND Bush)

Lots in here, very worth the read.

http://quote.bloomberg.com/apps/news?pid=nifea&&sid=anUQtQ34gx2o

[havocmom]

18. Yeah, I printed that one up to send to a brother who thinks 'grownups'

are in charge. Am building a file to mail him (no computer) in about Sept. Will send him the DVD Uncovered also. We don't go to politics during phone calls since his remark about 'grown ups in charge' on 9-12-01. Will be glad when he gets a PC and I can email him stuff regularly to get his info soruces beyond hate radio and CNN.

The bloomberg article is very good about explaining the fuel price increases. Fewer hands, tighter control, fuck em'at the pump 101. Nothing to do with crude on this one.

[Barkley]

19. Oil of L.A.: Great Article underpants!

California's gas market is an oligopoly -- They are coordinating their efforts to restrict output in order to rise prices and profits.

There's a refinery (in Barstow I think) that closing. I heard that its a relatively new facility but its closing on some technicality.

Since the election of Arnold to Gov., the California oil companies feel they have greater latitude to collude in raising prices. They know that the Gov. won't initiate any serious anti-trust investigations to their collusion.

Thanks so much for this article.

[spinbaby]

20. Looting, pure and simple

I'm convinced that the Repugs already know they're going to lose in the fall so they're looting for all they're worth. If they thought * had any chance of winning, they'd be keeping gas prices down to help him along. Instead, they're shutting down refineries, creating an artificial shortage (much like the power shortage in California in early 2001), and raking in the money hand over fist. Last chance to loot before the election.