Donger on Suicide Watch: Oil Nears $100 a Barrel

[Frazod]

http://apnews.myway.com/article/20080902/D92UIA0G0.html

SINGAPORE (AP) - Oil prices fell below $106 a barrel Tuesday in Asia - $10 below its close Friday before the Labor Day weekend - as investors shifted their focus to slowing global demand after worries about Hurricane Gustav subsided.

Light, sweet crude for October delivery was trading at $106.03 a barrel in electronic trading on the New York Mercantile Exchange midafternoon in Singapore, and at one point dropped as low as $105.46.

On Monday, when U.S. trading was closed for Labor Day, the contract had plunged $4.34 to $111.12 a barrel in late electronic trading. On Friday, the contract settled at $115.46 a barrel.

Traders were relieved that Gustav weakened as it approached the offshore oil rigs and Louisiana refineries, and appeared to have caused less damage than expected in New Orleans and surrounding areas.

But they quickly turned their attention to slowing global economic growth, speculating that will dampen demand for crude oil, even in developing countries such as China and India.

"The market continues to be weighed down by worries of a global economic downturn and slowing oil demand in developing markets," said Victor Shum, an energy analyst with consultancy Purvin & Gertz in Singapore. "Action by OPEC and supply side concerns should put a backstop to any sharp price drop."

The Organization of Petroleum Exporting Countries is scheduled to meet Sept. 9 and has indicated it may take action to defend the $100 a barrel level.

There was some disruption to oil supplies as oil companies shut down production and evacuated facilities ahead of the storm. Altogether, about 2.4 million barrels of refining capacity had been halted, roughly 15 percent of the U.S. total, according to figures from Platts, the energy information arm of McGraw-Hill Cos. (MHP) The Gulf Coast is home to nearly half of the nation's refining capacity.

It could be a day or more before oil and natural gas companies can assess the damage to their drilling and refining installations. Louisiana Gov. Bobby Jindal said as much as 20 percent of oil and gas production that was stopped because of Gustav could be restored by this weekend, stressing that it was a rough estimate.

Traders are also keeping an eye on other storms brewing in the region.

Hurricane Hanna was predicted to come ashore in Georgia and South Carolina late in the week, and Tropical Storm Ike formed late Monday in the Atlantic Ocean and may become a hurricane in the next 36 hours as it approached the Bahamas.

"September is the peak of the Atlantic hurricane season. After Gustav, there are two more now on the radar screen. The storms are likely to provide some upside risks to the oil futures market," Shum said.

In other Nymex trading, heating oil futures fell 15.44 cents to $3.0375 a gallon, while gasoline prices lost 16.92 cents to $2.685 a gallon. Natural gas for October delivery fell 47.3 cents to $7.472 per 1,000 cubic feet. In London, October Brent crude was down $2.01 to $107.40 a barrel on the ICE Futures exchange.

[alanm]

Originally Posted by jjchieffan

You're right. I didn't even think that part of it through. I still believe that 4+ billion barrels from the area outside 50 miles offshore is more than a drop in the bucket. I wonder how much more is available inside that 50 miles.

I've heard estimates that over 80% of known oil deposits are within 50 miles. It would seem that the dems are playing games again with no intention of doing anything and hoping it all just goes away.

[Donger]

Originally Posted by jjchieffan

You're right. I didn't even think that part of it through. I still believe that 4+ billion barrels from the area outside 50 miles offshore is more than a drop in the bucket. I wonder how much more is available inside that 50 miles.

MMS estimates 76 billion barrels of crude and 400+ trillion CF of NG are recoverable on our OCS.

To put that in perspective, we use about 20 million barrels/day. More than 60% of that is imported. In other words, we could supply our demand for 10 years with no imports.

[Lzen]

Originally Posted by penguinz

There are a lot more than one million cars in the US. This makes that stat really stupid.

Okay, how about this? All the cars and trucks in America for 1 year.

[HC_Chief]

Originally Posted by Donger

MMS estimates 76 billion barrels of crude and 400+ trillion CF of NG are recoverable on our OCS.

To put that in perspective, we use about 20 million barrels/day. More than 60% of that is imported. In other words, we could supply our demand for 10 years with no imports.

About long enough to perfect alternatives e.g. all electric, hydrogen fuel-cells, hydrogen, et al.

[Donger]

Originally Posted by HC_Chief

About long enough to perfect alternatives e.g. all electric, hydrogen fuel-cells, hydrogen, et al.

Yep. Or 20+ if we continue to import. It's a massive amount, regardless of what Hamas "thinks."

[Calcountry]

Originally Posted by 'Hamas' Jenkins

Offshore drilling won't reap any rewards for a *****ing decade. It's a false panacea.

You really are a tool of the left, did you know that? Have you even read any articles about one of the most important resources known to man? Do you own a vehicle, use some form of gas to heat your home?

Where do you think the shit comes from man?

In the meantime, the Russians are activly trying to take control of the Arctic so they can drill more and more.

The Chinese want to drill off of Flordia's coast, they don't have enviro nazis holding their balls to the floor. BTW, how do you like the Chinese efforts at curbing global warming? Their country spews more waste into the environent than any other country on the globe? WTF?

[Calcountry]

Originally Posted by 'Hamas' Jenkins

You are talking about a drop in the bucket ten years down the road. It is such a small amount that even a miniscule increase in fuel economy standards would far outpace anything that you would gain from offshore drilling. Even T. Boone Pickens has said it's a farce, which is like Herm Edwards telling you that you are running the ball too much.

Please, stick to football. Infrastructure already exists in the Gulf, that would reduce the "drill to market" timeframe on drilling of Florida. California already has infrastructure in place by Santa Barbara that would also reduce the total time, so, frankly you don't know what the fug you are talking about. Furthermore, If we would have started drilling in Anwar, when the bill originally came up for a vote under Bill Clinton, we would have the oil online RIGHT NOW, making a difference, 10 years ago.

It is like running cross country 10 mile race, something I use to do back in the day. Saying we shouldn't start drilling because we won't see any for 10 years is like saying, oh, SHIT, 10 miles is a long way to run, I shouldn't even take the first step, becuase it is going to be a long time before I get there. What a bunch of absolutely STUPID talking point BULLSHIT.

[Calcountry]

Originally Posted by alanm

T Boone has a wind driven agenda he's trying to peddle.

T Bone, is smart. He realizes that their are a bunch of tree hugging idiots in this country and it is of no use to try to talk to them about the realities of an industrial society, so he talks a green game to get what he wants, more money from his businesses.


Just like PG&E does out here. They run PSA's touting peoples desire to "make a difference on global warming" by conserving energy, all the while, knowing that if people conserve, they can supply them without building more power plants, thus enhancing their profits greatly. NTTIAWWT, but do you believe that PG&E actually believes in global warming?

It's the height of hypocrisy.

[jjchieffan]

Here is another excert from the article

Pelosi's bill keeps the federal prohibition on energy production in place for the first 50 miles. It gives the states the option of opening up from 50 to 100 miles for exploration, but does not offer revenue sharing, depriving states like Virginia the incentive to actually opt in," said Drake.

"Since 88 percent of the known oil and natural gas reserves are inside 50 miles and portions of the OCS [outer continental shelf] beyond 100 miles production may not be economically viable, almost 88 percent of our natural resources would be permanently locked away," she said.

[Programmer]

Originally Posted by jjchieffan

Here is another excert from the article

Pelosi's bill keeps the federal prohibition on energy production in place for the first 50 miles. It gives the states the option of opening up from 50 to 100 miles for exploration, but does not offer revenue sharing, depriving states like Virginia the incentive to actually opt in," said Drake.

"Since 88 percent of the known oil and natural gas reserves are inside 50 miles and portions of the OCS [outer continental shelf] beyond 100 miles production may not be economically viable, almost 88 percent of our natural resources would be permanently locked away," she said.

Can anyone tell me why she wants to lock away 88% of our natural resources?

[jjchieffan]

Originally Posted by Programmer

Can anyone tell me why she wants to lock away 88% of our natural resources?

I think Rush would say because she is an "environmentalist wacko" ::

[Programmer]

Originally Posted by jjchieffan

I think Rush would say because she is an "environmentalist wacko" ::

I considered that as a given: California - San Francisco - Whacko

Kind of redundant.

[Simply Red]

Originally Posted by Programmer

I considered that as a given: California - San Francisco - Whacko

Kind of redundant.

Do you like Michael Savage?

[Programmer]

Originally Posted by Simply Red

Do you like Michael Savage?

Who is Michael Savage?

[Mizzou_8541]

Originally Posted by bunnytrdr

T Bone, is smart. He realizes that their are a bunch of tree hugging idiots in this country and it is of no use to try to talk to them about the realities of an industrial society, so he talks a green game to get what he wants, more money from his businesses.


Just like PG&E does out here. They run PSA's touting peoples desire to "make a difference on global warming" by conserving energy, all the while, knowing that if people conserve, they can supply them without building more power plants, thus enhancing their profits greatly. NTTIAWWT, but do you believe that PG&E actually believes in global warming?

It's the height of hypocrisy.

What does NTTIAWWT mean?