Which one of you is hiding this guy in your basement? (Page 6/6)
maryjane MAR 19, 09:57 PM

quote
Now, I fully realize that the people I was asking were not the most knowledgeable about world oil production or even much more than retail sales but, every time I asked, the answer was the same. Biden cutting the pipeline off. That doesn't make it true but, it does indicate the train of thought between Hattiesburg, MS and Surprise, AZ, Hattiesburg, MS and Austin, TX and Hattiesburg, MS and KCMO.


Did the people you asked look anything like this?
Hudini MAR 20, 12:33 AM
I remember a time when a refinery fire caused a jump in prices at the pump. The fire just happened to be in an area not affecting production. Prices still went up.

After Hurricane Katrina prices shot up over $5 a gallon in Knoxville. When the local news station started asking retailers why, they responded 'because the wholesaler said we should'. When the politicians started asking questions the prices came back down but were still higher than before the hurricane. There is a major pipeline from New Orleans that brings fuel to the North East and has a branch to Knoxville. They raised prices in anticipation of a service interruption, not an actual shortage.
maryjane MAR 20, 08:22 AM

quote
Originally posted by Hudini:

I remember a time when a refinery fire caused a jump in prices at the pump. The fire just happened to be in an area not affecting production. Prices still went up.

After Hurricane Katrina prices shot up over $5 a gallon in Knoxville. When the local news station started asking retailers why, they responded 'because the wholesaler said we should'. When the politicians started asking questions the prices came back down but were still higher than before the hurricane. There is a major pipeline from New Orleans that brings fuel to the North East and has a branch to Knoxville. They raised prices in anticipation of a service interruption, not an actual shortage.



That, is probably very accurate. As a commodity, the price of wholesale fuels is affected by changes in crude oil prices, taxes, transportation cost changes, and refinery margins and capacity. Wholesale price is set at the close of each day's trading on the Chicago Mercantile Exchange based on Spot prices. This price (nowadays) is forwarded electronically to the hundreds of wholesale distributors across the country and sets what is known as the 'Rack Price'. It is sometimes referred to as a day of delivery price.

There are 3-4 sources (PRAs/Price Reporting Agencies) in North America for what the spot prices mean; the largest being OPIS. Others are Argus & Platt.
Rack price is what the retailer pays to the distributor, unless the retailer is large enough to buy on a futures contract. Daily and weekly changes in retail prices are set in reflection of what it costs to replace each gallon of fuel in the retailer's tanks that were previously pumped.

If, an event is seen that changes or affects the upstream, or midstream segment of the distribution system, the rack price will increase based on that change. The rack distributors then electronically tell the retailers what they need to be pricing retail fuel for each day, usually about an hour after CME closes, tho a sudden event, may trigger changes thruout the day. It is minimally set between the hrs of 5:30 p.m. and 11:00 p.m. Eastern Time.
Otherwise, the retailer will find themselves paying more for the next tank of fuel than their former retail price was able to recoup meaning the retailer actually lost money on the sale of that tank's volume of fuel.

[This message has been edited by maryjane (edited 03-20-2021).]

cliffw MAR 20, 08:52 AM

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Originally posted by rinselberg:
I wonder if there is a prevailing sentiment among the owners and managers and among the rank and file of U.S. oil and gas producers about what Biden has done on these pipeline projects.



Of course not, . /sarcasm.

I have just shy of 40 years of U.S. oil and gas producers (drilling and exploration) experience. I am qualified to answer your concerns. Yes. We have a prevailing sentiment about people like you. We want you to hand carry the crude to the refinery and then hand carry the refined product back to where you use it.

We want you to also not pipe in to your home water. We want you to got down to the creek and carry it back. Drilling = bad.


quote
Originally posted by rinselberg:
Also to be considered, the Biden administration is at odds (I believe) with Germany over that pipeline project that is going to bring natural gas from Russia to Germany. Sanctions. U.S. sanctions against that pipeline project. At odds with Germany, and perhaps at odds with some other countries in Europe about this. The Trump administration came out against it, and sanctioned it (I think) but also the Biden administration. Has the Biden administration sanctioned it even more than the Trump administration?



You believe ? What do you think ? Why would Biden be at odds with Germany ? Truthfully, I have not heard anything about that. The reason your President Trump came out against it, ... you don't know why ?



quote
Originally posted by rinselberg:
"I yield back the rest of my time."



Your not going to post anymore ?
rinselberg MAR 20, 09:08 AM
Oil pipeline cancellations? Meh. "Warren's" got me covered.



You know "Warren" don't you?

Click to show
cliffw MAR 20, 09:32 AM

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Originally posted by rinselberg:

Oil pipeline cancellations? Meh. "Warren's" got me covered.





My my, that's ironic ? Warren is covering you in Co2. Quite the carbon foot print.
williegoat MAR 20, 09:56 AM

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Originally posted by rinselberg:

Oil pipeline cancellations? Meh. "Warren's" got me covered.

CLICK FOR FULL SIZE


You know "Warren" don't you?

Click to show


Of course!

Warren

Warren

Buffett
Hudini MAR 20, 05:45 PM

quote
Originally posted by rinselberg:

Oil pipeline cancellations? Meh. "Warren's" got me covered.



You know "Warren" don't you?

Click to show




You think thousands of tank cars full of crude are safer than a pipeline? Or cheaper? You don't know the BNSF very well.
cliffw MAR 20, 09:38 PM

quote
Originally posted by rinselberg:
I wonder if there is a prevailing sentiment among the owners and managers and among the rank and file of U.S. oil and gas producers about what Biden has done on these pipeline projects.



I got together with some of my oil field buddies and we consulted on this. Usually we consult over a few beers. We came to the conclusion that you are right. We think that you should not be pipe lining your sewage under every street in America. We think you should bucket carry it to the sanitation department.

Not plastic buckets. They are made from oil. Green buckets. Made from wood.

[This message has been edited by cliffw (edited 03-20-2021).]

maryjane MAR 21, 08:26 AM
When ya hear Asia described as the land of lotus blossoms and honey buckets, the last part isn't anything made by bees... Most were wooden.