Better Fill up today

[Catwoman]

Ouch.  I think we're headed in the wrong direction!

[frawin]

Catwoman, unfortunately you are right, the hurricane knocked out alot of production.

[frawin]

I know that this will probably draw some rebuttal from the Left Wing Liberals, but consider one thing that the left is pushing, "TAX THE OIL AND GAS INDUSTRY MORE" if I say to you I want you to buy more land, buy more and bigger machinery so you can raise more food and cheapen the price to the people, and I am going to raise your taxes so you will have less money to do it with. In addition if you have crop failure, (like drilling a drilling a 10,20, 30 million dollar dryhole) you can't write it off on your taxes. The result will be that you have less and higher food.

Wamp: Our Economy Needs A Real Energy Bill
by Rep. Zach Wamp
posted September 16, 2008

One issue is burning in the American public like no other issue, and that is the cost of energy. While the American people continue to suffer at the gas pump, House Democrats have decided to bring a so called "energy" bill to the floor that does not do enough to increase our domestic supply of energy now. We cannot afford to pick and choose only certain energy sources. An "all of the above" strategy that includes using all American-made energy is what the American people want and need.

By taking advantage of our own domestic energy sources, we decrease our dependence on foreign oil and create jobs here at home in the process. While advances in conservation and renewable energy are making progress, the technology is not yet ready to replace all of the oil and gas that make up a large part of our energy use. That's why it's so important to invest in research and development so this technology becomes more mainstream in the market. In the meantime, we still need new domestic production of oil and gas, if we have any hope of decreasing our dependence on foreign oil. New production from the Outer Continental Shelf (OCS) could help provide relief to millions of American's feeling the crunch of soaring gas prices, while additional energy sources from renewables are coming online.

Currently, 85 percent of America's territorial waters are off limits to energy exploration, but the U.S. Department of the Interior conservatively estimates that these off-limits areas contain at least 19.1 billion barrels of oil. This is the equivalent of about 35 years of current imports from Saudi Arabia. The Democrat energy bill calls for limited offshore drilling, but it permanently locks up vast amounts – about 88 percent – of America's oil and natural gas resources. The limited drilling in the bill doesn't include drilling in Alaska, the eastern Gulf of Mexico or within 50 miles of the coasts. But the majority of the known capacity of oil reserves in the OCS is within 50 miles of our coasts.

Other countries explore their OCS for energy because they view it as an asset, whereas the Democrats in Congress and extreme environmental groups view ours as an environmental hazard. Radical environmentalists, the Natural Resources Defense Council, Sierra Club and the Center for Biological Diversity among others, have filed lawsuits to block every single oil lease issued in this country to tie it up in court and have locked up our energy resources. As recently as February 2008, when 487 oil leases were issued in the Chukchi Sea, off the west side of Alaska, environmental groups challenged all 487 of these leases with a lawsuit.

While the Democrats energy bill does provide for limited leasing and drilling for oil between 50 and 100 miles if coastal states opt-in, it does not include a pivotal revenue-sharing provision to share benefits with the states. Without such a measure, very few states are apt to opt-in. And if extreme environmental groups have already filed lawsuits to block oil leases that have been previously issued, any energy bill without a limited liability provision to prevent future lawsuits on leases or exploration will not actually yield any new oil or gas supply. This means that no real energy exploration will occur.

In addition, the bill has no provisions to cut red tape and increase American refining capacity. The gas spike that occurred because of Hurricane Ike is another reminder that we need to increase our refining capacity in this country.

The Democrat energy bill limits sources of energy at a time when we need expanded sources of energy. As financial markets struggle, the most important thing we can do for an American economy is to pass the American Energy Act. This Republican alternative energy bill would open up all of the oil and gas resources in this country for jobs, productivity, exports and in turn help stand up our economy. The American Energy Act also helps promote renewable energy and energy efficiency by creating a renewable trust fund using revenues generated by exploration in the deep ocean and on the Arctic coastal plain, not at the expense of the American taxpayer.

While President Bush lifted the executive ban on off-shore energy exploration on the OCS earlier this summer, Congress hasn't acted to remove its moratorium that has been in place for more than a quarter of a century, when gasoline cost $1.30 per gallon. But the moratorium expires September 30 if it is not renewed.

Let's lower the cost of energy before it's too late. This is not about politics, it's about the people we represent. We need action and we need it today.

[frawin]

Nov-08 Crude is trading at $106.50, up $3.75 and Oct-08,  Natural Gas is trading at $7.550 Up $0.019,

[DanCookson]

Ughh....looks like the pain train is leaving the station again. 

[frawin]

Dan, I am hoping that crude will comeback down some, once the refineries and Gulf Coast area production get back to normal. It will be along time before all of the production is back up but fortunately this is the time of year when we normally drop in gasoline consumption and are not at peak fuel/heating oil production.

[frawin]

Interesting article on crude oil prices. It is obvious that OPEC does and will continue to control world oil prices. If the Democrats stay in power that will only get worse as US production will be hindered  by a do nothing congress that wants to tax the industry more. The Democrats gained control pf both houses 2 years ago, look at what oil prices have done in the past 2 years.

Oil Price Is Too High as Slowdown Spreads, IEA Says 

By Suttinee Yuvejwattana

Sept. 22 (Bloomberg) -- Crude oil prices are ``too high'' because the economic slowdown is yet to spread to India and China, where subsidies are propping up demand, the International Energy Agency's deputy executive director said.

``When the government gets involved, that makes the market more rigid and more volatile,'' William Ramsay said in Bangkok today.

The IEA, an adviser to 27 nations, on Sept. 10 lowered its 2008 demand forecast as high prices and slowing economic growth trimmed demand for diesel, gasoline and jet fuel. The agency cut this year's forecast by 100,000 barrels to 86.8 million barrels a day and next year's by 140,000 barrels to 87.6 million barrels a day.

``The economic slowdown in the U.S., Europe hasn't gotten into China, India much but at some point you have to presume it will,'' Ramsay said.

The Organization of Petroleum Exporting Countries, the supplier of more than 40 percent of the world's oil, this month also reduced its forecast for 2009 oil demand.

The 13-member group cut its estimate for average oil consumption next year to 87.66 million barrels a day, compared with an estimate last month of 87.80 million barrels, according to a monthly oil market report on Sept. 16. OPEC, based in Vienna, also trimmed its forecast for this year by 120,000 barrels a day.

``Supply has improved a bit since May,'' Ramsay said. ``The market recognized the improvement and oil prices fell from July's high. If you can produce oil for a lot less than $100, why do we have to pay that range?''

Crude oil should be trading between $20 a barrel and $100 a barrel, Ramsay said.

Oil in New York was at $105 a barrel, up 45 cents, at 1:14 p.m. Singapore time. Prices surged to a record $147.27 a barrel on July 11.

[frawin]

Correction it is October-08 Crude that is  is trading $13.75 a barrel higher, this is last day of trading for October and all of the refiners are trying to get enough crude for October runs. I would fill up today just to be safe:
Oil Rises More Than $10 on U.S. Bailout Plan, Weaker Dollar

By Mark Shenk

Sept. 22 (Bloomberg) -- Crude oil climbed more than $10 a barrel on speculation that a proposed $700 billion U.S. government rescue plan for the finance industry may bolster the economy and shore up demand.

Oil has risen 26 percent since Sept. 16, the biggest four- day gain since at least June 1998, as lawmakers pledged fast consideration of the Treasury's plan to buy devalued mortgage- related securities. The dollar fell to a three-week low against the euro, increasing the appeal of commodities as a hedge.

``There's a flight to quality and the energy markets are benefiting,'' said Michael Lynch, president of Strategic Energy & Economic Research in Winchester, Massachusetts. ``The dollar is down again and investors are fleeing to commodities. We are back to the cycle that pushed prices to records earlier this year.''

Crude oil for October delivery rose $10.70, or 10 percent, to $115.25 a barrel at 1:39 p.m. on the New York Mercantile Exchange. Futures climbed as much as $11.12 to $115.67 a barrel, the highest since Sept. 2.

``There's positive sentiment in most asset markets,'' said Brad Samples, a commodity analyst for Summit Energy Inc. in Louisville, Kentucky. ``The paralysis of financial markets may be ending. The implication is that once the financial markets function, the economy will grow and demand will rise.''

The U.S. currency dropped on concern that the Treasury's plan to buy $700 billion of troubled assets will widen the country's budget deficit. Investors looking to hedge against the dollar's decline earlier this year have helped lead oil, gold, corn and gasoline to records.

Wall Street

``A lot of Wall Street traders are more secure in their jobs this week, which is providing a little extra juice to the relief rally,'' said Tim Evans, an energy analyst with Citi Futures Perspective in New York. ``It's still unclear how much the relief on Wall Street will trickle down and lead to increased demand on Main Street.''

The dollar declined 2.1 percent to $1.4769 per euro, from $1.4466 on Sept. 19. It touched $1.4778, the weakest level since Aug. 29.

Oil fell more than $10 a barrel early last week as the bankruptcy filing of Lehman Brothers Holdings Inc. shocked world equity markets.

Net-Long Positions

Hedge-fund managers and other large speculators increased their net-long position in New York crude-oil futures in the week ended Sept. 16, according to U.S. Commodity Futures Trading Commission data.

Speculative long positions, or bets prices will rise, outnumbered long positions by 19,379 contracts on the New York Mercantile Exchange, the Washington-based commission said in its Commitments of Traders report.

Gasoline for October delivery increased 7.85 cents, or 3 percent, to $2.6782 a gallon in New York. Heating oil rose 14.33 cents, or 5 percent, to $3.0411. Heating oil is heading for the biggest single-session gain since June 6.

Regular gasoline, averaged nationwide, declined 1.8 cents to $3.739 a gallon, AAA, the nation's largest motorist organization, said today on its Web site. Pump prices reached a record $4.114 a gallon on July 17.

Saudi Production

Saudi Arabia, the world's biggest oil exporter, reduced crude-oil supplies to major international oil companies by about 5 percent, compared with the previous month, and cut supply to U.S. refiners, Reuters said, citing industry sources.

The desert kingdom, along with the 12 other members of the Organization of Petroleum Exporting Countries, resolved on Sept. 10 to conform more closely to official quotas by trimming supply.

Brent crude oil for November settlement rose $6.12, or 6.1 percent, to $105.73 a barrel on London's ICE Futures Europe exchange.

Crude oil prices are ``too high'' because the global economic slowdown may spread and cut consumption, the International Energy Agency's deputy executive director said.

``The economic slowdown in the U.S., Europe hasn't gotten into China, India much, but at some point you have to presume it will,'' William Ramsay said in an interview in Bangkok today.



Last Updated: September 22, 2008 13:41 EDT

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[frawin]

In the last day for trading for October-08 Crude it settled at $120.92, up $16.37 on the day, the back months were by $6.00, Oct-08 Natural Gas settled at $7.658, up $0.127 on the day

[frawin]

Nov-08 Crude is trading at $107.50, down $1.87, Oct-08 Natural Gas is trading at $7.665, up $0.007