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Discussion Starter #1
Since no one can tell me what happend to our old News forum... I'll post this here. :rolleyes:

Low reserves of gas spell 'nightmare'

Joe Carroll
Bloomberg News
May. 11, 2004 12:00 AM


ConocoPhillips, the largest U.S. oil refiner, is producing as much gasoline as it can, and Valero Energy Corp.'s 15 plants are processing 20 percent more crude oil than a year ago. They aren't keeping up with demand.

Gasoline futures are close to the highest in 20 years of New York trading and retail prices have been at a record for six weeks. Motorists are burning fuel at the fastest pace in at least five years, and stored reserves are as much as 16 percent below normal in some regions.

Supplies may run short this summer when vacationers hit the road and push demand to a peak, Valero Chief Executive Bill Greehey said last month.

"We could be in for a nightmare," said John Saxon, 47, product-supply manager at Haycock Petroleum, which supplies fuel to 47 filling stations in Las Vegas and Salt Lake City. "We're in uncharted water with gasoline. Supplies are going to stay pretty tight for the foreseeable future."

The U.S. average gasoline pump price jumped 9.7 cents, or 5.3 percent, in the past week to $1.94 a gallon, the sixth all-time high in seven weeks, the Energy Department said Monday.

Prices are higher in some states, including Arizona, where the average cost per gallon Monday was $2.10, according to AAA.

Crude-oil prices, which touched $40 a barrel Friday in New York, slid 2.5 percent to $38.93 Monday after Saudi oil minister Ali al-Naimi called on OPEC to increase output quotas by at least 6.4 percent. Gasoline futures fell 3.2 percent to $1.2963 a gallon.

Crude-oil supplies in the U.S. are up 4 percent from a year ago after rising in nine of the past 10 weekly reports by the U.S. Energy Department. Gasoline supplies are down 1.8 percent.

"There is plenty of oil on world markets," said ConocoPhillips Chief Executive James Mulva at a meeting last week with reporters. "It's a question of limited refining capacity."

No one has built a refinery in the United States since 1976, even as surging fuel demand swells refining profits, because of daunting environmental hurdles, said Mulva, 57.

"Our company and the industry as a whole are running at full capacity to meet consumer demand," he said. "Supply and demand are very tightly balanced."

Futures prices fell Monday on speculation that an influx of additional oil onto global markets could spur refiners in Europe and Asia to produce more fuel for the U.S. market, said Steve Enger, an analyst at Denver-based Petrie Parkman & Co., which has done investment banking for Marathon Oil Corp., Premcor Inc. and Frontier Oil Corp.

"The thinking is that if OPEC and the Saudis in particular are keen on increasing oil supplies, then gains in fuel inventories will follow," Enger said.

"The tough question with regard to the U.S. market is if there's someplace available to refine" additional crude supplies.

Rising gasoline consumption is hindering efforts by refiners and wholesalers to build reserves for July and August, the period of highest gasoline needs.

http://www.azcentral.com/arizonarepublic/business/articles/0511gasprices11.html#
 

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The Voice of Reason
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hip said:
No one has built a refinery in the United States since 1976, even as surging fuel demand swells refining profits, because of daunting environmental hurdles, said Mulva, 57.
Yup.

:rolling_e
 

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I think they need to build more refinery and the gov't should look at CAFE standards again.
 

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hip said:
Since no one can tell me what happend to our old News forum.....
I've been wondering about that too.

Was it removed on purpose?
Is it impossible to have in the new format?

If it can be restored, that would be good.


BTW -- In case people are wondering what happened to the threads that had been in the "News" forum, they seem to have been put in "General" somehow.
 

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Discussion Starter #6 (Edited)
I still remember years ago when the "Alaska Pipeline" was being built, it took years to complete. Odd, you never hear anything about it anymore or where that oil is going?

Sounds like an X-File... :ghost:
 
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