[Orangetxguy]

And from BP no-less.

Fuel Fix » BP CEO warns high oil prices endanger U.S. economy

[h=1]BP CEO warns high oil prices endanger U.S. economy[/h] Posted on December 6, 2011 at 7:11 am by Dan X. McGraw





BP Chief Executive Bob Dudley (AP file photo/Alastair Grant)






BP Chief Executive Officer Robert Dudley warned high oil price could endanger the fragile U.S. economy, and the world should be concerned about the consequences that might have on the global market.
Dudley, who spoke today at the World Petroleum Congress in Doha, Qatar, said crude prices aren’t too far away from causing economic damage, according to a Wall Street Journal story. Crude oil prices were hovering in the $100 range today.

“There is a risk that the world’s largest economy could be hit by a lack of supplies and a high price of oil, with consequences for the recovery elsewhere in the world,” Dudley said.

Despite the risk, Dudley said he expects oil prices to remain high as demand grows in developing countries.

[Mr. Ford95]

You mean he just realized this? Ah wait, he can be given a mulligan after that disaster in the Gulf, that probably ate up a lot of his time to stop and think about the rest of the world with high oil prices.

Would this be considered insider trading? I seriously think he knows something from the British Govt. Remember, Iran just the other day spouted off about oil prices soaring to more than $250 a barrel if they are put under an embargo or attacked. Now the head of BRITISH Petroleum echoes Iran's statement in a way.............our road to recovery would be gone for a long time. It would look like Mad Max 2: The Road Warrior here. The 1970's would be a godsend if prices at the pump skyrocketed to $8+ per gallon.

[GMAN]

Some of these oil companies do a lot of business with Iran. It is in their best interest to keep the pipeline and supplies wide open, even if they are the ones taking advantage of the high prices.

[Orangetxguy]

Originally Posted by Mr. Ford95

You mean he just realized this? Ah wait, he can be given a mulligan after that disaster in the Gulf, that probably ate up a lot of his time to stop and think about the rest of the world with high oil prices.

Would this be considered insider trading? I seriously think he knows something from the British Govt. Remember, Iran just the other day spouted off about oil prices soaring to more than $250 a barrel if they are put under an embargo or attacked. Now the head of BRITISH Petroleum echoes Iran's statement in a way.............our road to recovery would be gone for a long time. It would look like Mad Max 2: The Road Warrior here. The 1970's would be a godsend if prices at the pump skyrocketed to $8+ per gallon.

LOL......I read an article Monday that said our gas prices are only as high as they are because the oil refiners are selling their product overseas.....to keep our gas prices high. issedoff:

Fuel Fix » Fuel exports up, and so is the cost at the pump

[h=1]Fuel exports up, and so is the cost at the pump[/h] Posted on December 2, 2011 at 11:10 pm by San Francisco Chronicle





By DAVID R. BAKER, SAN FRANCISCO CHRONICLE
Faced with sluggish sales at home, American refineries are shipping their gasoline, diesel and other petroleum products abroad in record amounts, turning the country into a net exporter of fuel.
And that’s one of the reasons why gasoline now costs more than ever for this time of year.
The United States, long the world’s most voracious consumer of fuel, still imports almost half of its crude oil, the raw material for gasoline and diesel. But starting in 2008, the country began exporting more refined petroleum products than it imported. And the gap keeps growing.
In the first nine months of this year, the United States exported 655 million barrels of finished petroleum products, including 121 million barrels of gasoline, while importing 264 million barrels of finished petroleum products, including 32 million barrels of gasoline, according to the U.S. Energy Information Administration.
The recession and tepid recovery have tempered America’s thirst for gasoline at the same time drivers are turning toward more efficient cars. So refiners have sought eager markets elsewhere. The fuel exports, in turn, help prop up gasoline prices here.
“Instead of that product backing up and depressing prices, it’s being sent to other countries,” said Tom Kloza, chief oil analyst at the Oil Price Information Service. “It’s good news for the refining industries and their workers and the balance of trade and U.S. jobs.”
But Kloza predicts the exports may turn into a hot-button issue next year if gasoline prices increase.
The exports are not the main reason gasoline prices are so high.
So far this year, the price of crude oil on the New York Mercantile Exchange has averaged $95 per barrel, closing Friday at $100.96. Prices have been even higher in Europe. As a result, gasoline prices can’t fall far, even though domestic gasoline use peaked in 2007 and has remained relatively weak ever since.
A gallon of regular now averages $3.29 nationwide, according to AAA. A year ago, the average was $2.88. In Houston today, it was $3.08 a gallon. A year ago, it was $2.74.
Gasoline demand in the United States likely will increase when the recovery gains firmer footing. But it may not rise to previous levels. Federal fuel-efficiency standards for cars are increasing, and with gasoline prices still high, consumers may be reluctant to drive more.
“It’s going to be difficult to get back to a point where we see … year after year of gasoline demand growth around 2 percent, like we had before,” said Gordon Schremp, senior analyst for the California Energy Commission. “That dynamic, we believe, has changed.”
Irony for U.S. drivers
Demand for diesel and gasoline remains strong outside the United States. Mexico lacks enough refineries to supply its growing population, analysts say. And the economic downturn that started in 2007 didn’t hit South America as hard as the United States.
To some oil industry critics, the exports look like a deliberate effort to squeeze American drivers.
“It’s a way to keep prices up,” Judy Dugan, research director with the Consumer Watchdog nonprofit group, said of shipping fuel abroad. “Overseas consumers are benefiting at a cost to domestic consumers.”
Oil industry representatives bristle at that notion.
“That’s just complete rubbish,” said John Felmy, chief economist with the American Petroleum Institute lobbying group. The exports, he said, help keep U.S. refineries afloat despite shriveling profit margins in recent years.
The situation contains a cruel irony for American drivers: U.S. crude oil production has risen in the last two years, while domestic gasoline sales have fallen. And yet, gasoline prices remain stubbornly high.
The reason, analysts say, is that fuel is now part of a global market, flowing wherever prices are best.
“If the price in Europe is a dollar more per gallon, pre-tax, than what the United States is paying, and shipping is 50 cents, why in the world would I supply the United States?” said James Beck, lead analyst for the Energy Information Administration’s weekly petroleum supply team.

[Windwalker]

Originally Posted by Orangetxguy

LOL......I read an article Monday that said our gas prices are only as high as they are because the oil refiners are selling their product overseas.....to keep our gas prices high. issedoff:

Fuel Fix » Fuel exports up, and so is the cost at the pump

Ya know? I mentioned something about that some time ago. I had read that the oil coming down the Alaska Pipeline was not going to benefit this country. That it was mostly being shipped overseas, and someone posted to the contrary. I think we were still under Bush back then. What I did not have was a link.

I'm not the least bit surprised that they're shipping more overseas. Tourism is down, people are buying cars that use less gas, especially in CA, they're buying electric. Enough so, that the DOT is looking at alternatives for collecting road use taxes. Currently, that revenue comes from fuel tax, but for those that drive electrics, no fuel equals no road use tax. And, the more popular the alternatives get, the less gas the oil companies sell. With a "Free Enterprise System", when your sales start dropping, you look for other markets.

So, if a company is likely to have some of it's supply cut off, it's going to start looking at every angle it can find in order to try to maintain that supply and keep their own profits up. They've known all along that high fuel prices hurts the economy, but until now, that fact did not serve their purposes.

Remember when fuel prices were SPIKING at the drop of a hat? And, what were the profits posted by EXXON-MOBILE??? It didn't matter if the price of fuel hurt the economy back then. Look at what is changing, and you see the motivation behind it. I really do not believe it was the "Three Ghosts of Christmas" that had a talk with him.

[Orangetxguy]

Originally Posted by Windwalker

Ya know? I mentioned something about that some time ago. I had read that the oil coming down the Alaska Pipeline was not going to benefit this country. That it was mostly being shipped overseas, and someone posted to the contrary. I think we were still under Bush back then. What I did not have was a link.

I'm not the least bit surprised that they're shipping more overseas. Tourism is down, people are buying cars that use less gas, especially in CA, they're buying electric. Enough so, that the DOT is looking at alternatives for collecting road use taxes. Currently, that revenue comes from fuel tax, but for those that drive electrics, no fuel equals no road use tax. And, the more popular the alternatives get, the less gas the oil companies sell. With a "Free Enterprise System", when your sales start dropping, you look for other markets.

So, if a company is likely to have some of it's supply cut off, it's going to start looking at every angle it can find in order to try to maintain that supply and keep their own profits up. They've known all along that high fuel prices hurts the economy, but until now, that fact did not serve their purposes.

Remember when fuel prices were SPIKING at the drop of a hat? And, what were the profits posted by EXXON-MOBILE??? It didn't matter if the price of fuel hurt the economy back then. Look at what is changing, and you see the motivation behind it. I really do not believe it was the "Three Ghosts of Christmas" that had a talk with him.

You are right about Alaskan oil being exported. When Bush became President, he and Congress approved BP selling it's excess portion of Alaska oil (about 38% of what BP produces) to Japan. The reason for allowing ti is the fact that all of the refineries in Southern California have been retooled to refine oil from Vietnam and Columbia.......which oil contains less sulfur than Alaskan oil. BP still refines Alaskan oil at the ARCO Cherry Point refinery, north of Bellingham WA. Those "Export" sales started in 2001 while I was still an ARCO employee. I am willing to bet that ConocoPhillips is doing exactly the same thing now, since their LA refinery switched to using Vietnamese oil in 2007.