WooHoo! A Tidal Wave Of Oil Is Coming

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azmastablasta

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Being a "seasoned" citizen I well remember the gas wars of the 50's and 60's. "Our price 17 cents a gallon + you get these cool tumblers and a pitcher, one free with every fillup.(PS. they're quite collectible today) How low will it go?

Iraq About to Flood Oil Market in New Front of OPEC Price War
If shipping schedules are correct, a tidal wave of oil is coming.
Grant Smith Julian Lee 7:37 AM MST May 26, 2015

Iraq is taking OPEC's strategy to defend its share of the global oil market to a new level.

The nation plans to boost crude exports by about 26 percent to a record 3.75 million barrels a day next month, according to shipping programs, signaling an escalation of OPEC strategy to undercut U.S. shale drillers in the current market rout. The additional Iraqi oil is equal to about 800,000 barrels a day, or more than comes from OPEC member Qatar. The rest of the Organization of Petroleum Exporting Countries is expected to rubber stamp its policy to maintain output levels at a meeting on June 5.

While shipping schedules aren't a promise of future production, they are indicative of what may come.

As in previous months, Iraq might not hit its June target - export capacity is currently capped at 3.1 million barrels a day, Deputy Oil Minister Fayyad al-Nimaa said on May 18. Still, any extra Iraqi supplies inevitably mean OPEC strays even further above its collective output target of 30 million barrels a day, Morgan Stanley says.

Defying the threat from Islamic State militants, Iraq has been ramping up exports from both the Shiite south - where companies like BP Plc and Royal Dutch Shell Plc operate - and the Kurdish region in the north, which last year reached a temporary compromise with the federal government on its right to sell crude independently.

http://www.bloomberg.com/news/articles/2...-opec-price-war
 
We are still under $# a gallon where we are. I bet the States and GOVMNT hate it. They want it back up to $4 and higher for taxes. It will be interesting to see where this leads.
 
News station here the other night was reporting on an impending price increase, saying prices were supposed to rise about 17 cents per gallon, through the end of summer. It now supposedly costs more to blend gas for summer use, than it does for winter use, was the excuse offered.

I'm gonnas call B_S_ on that one... Can I hear an Amen?
 
I've heard the same excuses for years Rocky. Sometimes it can make sense to the logical mind. Usually the increase seems to be starting around memorial day through Labor day. Now to my thinking it's sort of a whatever the traffic will bear kind of thing. People tend to want to get out of town, to the lake, vacation etc. They know that a small gradual increase will not have much effect to slow that desire. 17 cents won't phase many folks. Also in the spring months the refineries say they halt production to clean and maintain the refineries in order to switch blends which I suppose could have a limiting effect. Here I suppose we see the supply and demand thing.But I believe the bulk of the blame lies at the feet of the EPA, who in their infinite wisdom created the "reformulated gasoline program" through the auspices of the 1990 Clean Air Act amendments, to reduce ozone and smog problems by changing blends. I think more than anything they want to piss people off which should encourage the creation of alternate fuels. I've read estimates that the actual mfg cost difference in blends is 1-2 cents per gallon. If that's so I suppose they blame the rest of the increase on supply and demand. Frankly I would like to see some work done on the hydrogen fuel cell program introduced by W back in 2003. Supposedly the gubmint has funneled more than a billion dollars into that research but I don't remember hearing much about it in a long time. Cabana boy probably found a way to funnel most of that money to his buddies.
 
Back in the day we paid more to have lead added to Gasoline, so our vehicles wouldn't knock. Then we had to take the lead out of the gasoline that we were adding so we paid more again to not put it in. If any additional costs are incurred between summer blend and winter blend fuels, they would be incurred on the winter side of things, your fuels requirements would be stricter in colder climates, (i.e. #1 diesel and #2 diesel), they've always gone up on price just in time for Memorial Day weekend, and it has always dropped just a little right after Labor Day... Officially the vacation season, as all the kids are out of school then.

Maybe supply and demand; maybe just gouging the public while the gouging is good.
 
This is something the EPA could fix.

One blend for all 50 states, all year.

Stop paying farmers to grow corn to make Ethenol to put in the cars when we know it takes more than a barrel of oil to make a barrel of ethenol. It's a waste, and not good for motors.
 
I know corn growers need a decent price for corn but using corn for fuel is not a very good plan I don't think. If they are going to insist on ethanol why not grow sugar beets or sugar cane. Supposedly Brazil is doing ok with cane. Ethanol is hard on engines anyway, and gas turns to syrup in a short time. You sure don't want to leave it in the tank long. It would be interesting to know how much it is costing to run ethanol.
 
Originally Posted By: Rocky1Back in the day we paid more to have lead added to Gasoline, so our vehicles wouldn't knock. Then we had to take the lead out of the gasoline that we were adding so we paid more again to not put it in...

I always wonder why the pumps still say "unleaded" when it is all unleaded...
 
Are the refinery workers still on strike
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Quote:News station here the other night was reporting on an impending price increase, saying prices were supposed to rise about 17 cents per gallon, through the end of summer.....Your news is behind the times....One week before Memorial Day, our local prices jumped $0.17, to $2.74 and after the holiday, dropped a mere $0.03....Quote:I always wonder why the pumps still say "unleaded" when it is all unleaded......We have a couple of local stations that still sell Leaded and No Ethanol gases, but the prices are somewhat high...Both are right next to a small airport, but it's a favorite place for the Old Car Collectors to fill up...And we have a bunch of them around here, the last local car show had over 120 show up when I went last February....


 
Nope not on strike. No refinery shuts down to clean out the system. Shut downs come for 2 reasons, Miantenance or economics. Our little refinery runs about 300k barrels per day. Sometimes we lose money sometimes we make money. The thing about oil is most of the big drillers also have refineries. When crude is high the upstream side makes money, when crude is down the upstream makes money. They are going to get every drop of oil out of Iraq that they can before Isis controls it all. Once Isis has it all Iraqi oil will be on the embargo list.
 
So why when they quit adding lead, did they increase the price under the guise of it cost more to take the lead out?
 
I may be wrong, but what i think Old Turtle was saying is that there are still some stations selling unleaded gas with no ethanol added. The refinery in McPherson, KS for instance is where Cenex fuel in this area comes from. Due to pricing and ethanol mandates, the refinery there quit getting 87 octane unleaded through the pipeline. Now the only ethanol free unleaded they can get is 91 octane and something less than 87 octane. Regs say unleaded only has to be 87, so if you buy 91 you are going to pay more for it. Adding ethanol adds octane, so the refinery blends 10% ethanol to get the remaining fuel up to 87 octane, and that is what most people buy because it is cheaper.
Some places, like our local coops, only sell one unleaded product. They are forced to choose between selling fuel with ethanol, or selling 91 octane, which comes at a premium price and makes it harder for them to compete with casey's, Quick Trip, etc. You can guess which they sell.
(I think that's right, adding ethanol increases the octane level)

The problem with ethanol is that is phase separates, and degrades over time, as mentioned above. Also, with ethanol free gasoline, water from condensation will sink to the bottom of the tank and can be pumped out and usually avoided. Adding ethanol causes that water to mix with the fuel instead of sink. Enough water in the fuel can cause engine damage, and poor performance.
 
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You will also get poorer gas mileage with ethanol added.

Who knows Rocky. Probably because they could. I boil crude oil for a living and have worked on units that are used to remove sulfer but I dont know of one to remove lead.
 
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