Oil Products Under Strain; Refiners Deal With Gustav

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GasBuddy News Article

Oil Products Under Strain; Refiners Deal With Gustav Monday, September 08, 2008
CNN Money -- NEW YORK -(Dow Jones)- Short-term stresses appearing in the U.S. petroleum supply chain following Hurricane Gustav may lead to higher gasoline and diesel prices in the long term. While no significant damage has been reported since Gustav made landfall in Louisiana as a powerful hurricane on Monday, many refineries, pipeline pumping stations and port facilities remain without power from the electricity grid. Utility Entergy Corp. (ETR) said Thursday that only one refinery in Louisiana will be without power as of Thursday night. Even with quick restoration of electricity, however, it could take refiners weeks to resume processing crude oil into products at normal rates.
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JT Moderator	Message Posted: 9/8/2008 7:45:26 AM	Ignore JT Report Abuse
	Monday, September 08, 2008 CNN Money -- NEW YORK -(Dow Jones)- Short-term stresses appearing in the U.S. petroleum supply chain following Hurricane Gustav may lead to higher gasoline and diesel prices in the long term. While no significant damage has been reported since Gustav made landfall in Louisiana as a powerful hurricane on Monday, many refineries, pipeline pumping stations and port facilities remain without power from the electricity grid. Utility Entergy Corp. (ETR) said Thursday that only one refinery in Louisiana will be without power as of Thursday night. Even with quick restoration of electricity, however, it could take refiners weeks to resume processing crude oil into products at normal rates. Visit CNN Money for full article

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barsantij Veteran Author Greensboro Posts:392 Points:105,990 Joined:May 2008	Message Posted: 9/10/2008 6:01:10 AM	Ignore barsantij Report Abuse
	tomok: The three most hurricane prone states in the US are Florida, NC, and Texas. Which states have the most ocean frontage? Where are you anticipating drilling? Drill on the west cost and you deal with quake and bake once it is on-shore and needs to be distributed. Hurricanes are becoming/have become more prevalent during the past 5 years - they are becoming stronger and more frequent. The verdict is still out as to whether or not it is a spike/cycle/or straight line increase.
nojsts Champion Author St. Louis Posts:11,189 Points:2,262,145 Joined:May 2002	Message Posted: 9/9/2008 12:12:18 PM	Ignore nojsts Report Abuse
	Just Another excuse to keep the price of fuel high. The White Hous eoil men do nothing to help. They just keep collecting millions.
FumingoverFumes Rookie Author Mississippi Posts:60 Points:19,190 Joined:Apr 2008	Message Posted: 9/9/2008 11:13:31 AM	Ignore FumingoverFumes Report Abuse
	they can always come up with some reason to make prices higher
hank1326 All-Star Author Los Angeles Posts:505 Points:126,730 Joined:Jun 2008	Message Posted: 9/9/2008 9:19:07 AM	Ignore hank1326 Report Abuse
	Ditto to 2009TDI. Its all about profits and consumer demands.
2009TDI Veteran Author San Diego Posts:476 Points:88,895 Joined:Aug 2008	Message Posted: 9/9/2008 7:47:37 AM	Ignore 2009TDI Report Abuse
	more good excuses for the speculators.
domer2 All-Star Author Gary Posts:872 Points:379,000 Joined:May 2007	Message Posted: 9/9/2008 7:46:45 AM	Ignore domer2 Report Abuse
	up up and away
PokerAce Champion Author Louisiana Posts:1,461 Points:295,405 Joined:Jan 2008	Message Posted: 9/9/2008 7:42:02 AM	Ignore PokerAce Report Abuse
	and with Ike coming thru, the Gulf oil rig platforms are clearing out if not already .....
Dennis783 Champion Author Wisconsin Posts:5,603 Points:1,122,945 Joined:Sep 2005	Message Posted: 9/9/2008 7:41:30 AM	Ignore Dennis783 Report Abuse
	how come these were never an issue before??? Didn't we ever have gulf storms before 3 years ago?
Gerund1 Champion Author Toronto Posts:1,147 Points:828,105 Joined:Apr 2003	Message Posted: 9/9/2008 7:41:06 AM	Ignore Gerund1 Report Abuse
	Yes, the over hyped Gustav is being blamed for further increasing the price of fuel. Notice that the price of oil is now under $105. I do not see the price of fuel reflecting this price.
no_monkey2002 All-Star Author Tallahassee Posts:854 Points:534,360 Joined:Mar 2006	Message Posted: 9/9/2008 7:35:56 AM	Ignore no_monkey2002 Report Abuse
	convert to wind power
laddyboy62 Champion Author Riverside Posts:1,581 Points:994,335 Joined:Mar 2005	Message Posted: 9/9/2008 7:34:53 AM	Ignore laddyboy62 Report Abuse
	might get another break from ike..not hitting direct
FawltyPawl All-Star Author North Carolina Posts:724 Points:115,550 Joined:Jul 2008	Message Posted: 9/9/2008 7:32:27 AM	Ignore FawltyPawl Report Abuse
	what is it they say about excuses????
tomok Champion Author Portland Posts:9,625 Points:719,110 Joined:Aug 2006	Message Posted: 9/9/2008 7:30:26 AM	Ignore tomok Report Abuse
	No back up OR emergency power available? Looks like it will take much longer to get production up and running AND the prices may go up too. Drill and produce oil offshore on the west and east coast? Help the oil supply a little so these storms will not affect production that much.
Don1222 Champion Author Michigan Posts:2,043 Points:119,630 Joined:Jul 2008	Message Posted: 9/9/2008 7:29:05 AM	Ignore Don1222 Report Abuse
	To stabilize gasoline prices we need competition. Otherwise we need price control. With utilities the government regulates the rates. If we want to keep the government out of it, we need alternative fuels independent of the oil companies. Lobby congress to actively support alternative energy. The oil companies are lobbying congress to support oil without any regulation. Congress will listen to their constituents. Call, write, or e-mail them. They need to hear from thousands of us daily until they get the message. If they don't listen, vote the incumbents out. Look at the mess this country is in, the incumbents are not doing anything worthwhile anyway. We have nothing to loose.
markmoore80 All-Star Author North Carolina Posts:839 Points:289,265 Joined:Apr 2004	Message Posted: 9/9/2008 7:28:26 AM	Ignore markmoore80 Report Abuse
	And just when gas was starting to drop...
Cherokee76 Champion Author Gary Posts:4,229 Points:726,580 Joined:May 2004	Message Posted: 9/9/2008 7:28:09 AM	Ignore Cherokee76 Report Abuse
	excuses, excuses, excuses...
poloka Rookie Author Kansas City Posts:43 Points:61,830 Joined:Aug 2008	Message Posted: 9/9/2008 7:27:09 AM	Ignore poloka Report Abuse
	Yup, I agree. Any excuse to raise prices. Shouldn't these refineries be running on generators? They have an abundance of oil sitting there they could burn for fuel to run their plant.
steveski Veteran Author Maryland Posts:484 Points:124,925 Joined:May 2008	Message Posted: 9/9/2008 7:24:52 AM	Ignore steveski Report Abuse
	these storms do tend to have a wide-spread impact. just think of how much worse it coulda been
Shadowwarrior Rookie Author Pennsylvania Posts:57 Points:718,890 Joined:Oct 2005	Message Posted: 9/9/2008 7:24:47 AM	Ignore Shadowwarrior Report Abuse
	Refiners having their act together? Maybe , but only when it comes to screwing the customer. I live in the North East and remember when there where refinery's in my area. Use to be 3, now only 1. They just close them down cause if they do not have backup production they can just charge ya more without any extra cost. More greed
prajes88 Veteran Author San Bernardino Posts:377 Points:80,580 Joined:Aug 2008	Message Posted: 9/9/2008 7:23:21 AM	Ignore prajes88 Report Abuse
	how bad it will really affect the price of gas
w4kh Champion Author Riverside Posts:3,660 Points:640,945 Joined:May 2004	Message Posted: 9/9/2008 7:23:16 AM	Ignore w4kh Report Abuse
	No power can sure make for no production...
HEBster All-Star Author Kentucky Posts:826 Points:771,855 Joined:May 2006	Message Posted: 9/9/2008 7:22:04 AM	Ignore HEBster Report Abuse
	They'll raise the price, no matter what
Kthyme Champion Author Fort Worth Posts:2,671 Points:876,390 Joined:Apr 2006	Message Posted: 9/9/2008 7:22:01 AM	Ignore Kthyme Report Abuse
	WOW...Not gonna even comment... ;)
sta135 Champion Author New York Posts:1,933 Points:136,235 Joined:Jul 2008	Message Posted: 9/9/2008 7:21:29 AM	Ignore sta135 Report Abuse
	There's so rarely a real need for excess capacity it's not worth it to build the facilities. Why build a big expensive tank farm when it will be empty 90% of the time?
Shadowwarrior Rookie Author Pennsylvania Posts:57 Points:718,890 Joined:Oct 2005	Message Posted: 9/9/2008 7:17:51 AM	Ignore Shadowwarrior Report Abuse
	Oh if they stock pile fuel and nothing bad happens, they have to sell for less. It's just greed, keep supplies low and charge outrages price if they have a storm event, even though no real damage done to equipment. Just their way of saying..bend over. here comes a price jump [Edited by: Shadowwarrior at 9/9/2008 10:19:10 AM EST]
gasie1 Champion Author Maine Posts:2,036 Points:950,685 Joined:Nov 2005	Message Posted: 9/9/2008 7:17:33 AM	Ignore gasie1 Report Abuse
	Another excuse.
lazycar Champion Author Los Angeles Posts:1,032 Points:212,140 Joined:Feb 2008	Message Posted: 9/9/2008 7:16:58 AM	Ignore lazycar Report Abuse
	You would think after years of being in the HURRICANE BELT? The oil companies would have it woked out by NOW! Maybe they do but aren't telling us, so they can BOOST PRICES for that reason! UMMMMMMMMmmmmmm? Bet you never pondered that idea?
soncorn Sophomore Author Missouri Posts:234 Points:153,880 Joined:Aug 2006	Message Posted: 9/9/2008 7:14:51 AM	Ignore soncorn Report Abuse
	any excuse they can use to raise prices
MajorSteve All-Star Author Oklahoma City Posts:500 Points:237,595 Joined:Sep 2006	Message Posted: 9/9/2008 7:13:19 AM	Ignore MajorSteve Report Abuse
	Poor planning I would think. How about larger reserves?
acknot All-Star Author Seattle Posts:872 Points:642,575 Joined:Sep 2003	Message Posted: 9/9/2008 7:10:15 AM	Ignore acknot Report Abuse
	Hurricane season is not over yet.
tbybee Veteran Author Omaha Posts:297 Points:108,600 Joined:Apr 2008	Message Posted: 9/9/2008 7:10:00 AM	Ignore tbybee Report Abuse
	Weather happens all the time -- you'd think they could plan a little.
Chazzer Champion Author Nevada Posts:8,086 Points:1,730,660 Joined:May 2002	Message Posted: 9/9/2008 7:07:30 AM	Ignore Chazzer Report Abuse
	And now IKE!
PizzaMon All-Star Author Philadelphia Posts:536 Points:372,150 Joined:Jun 2006	Message Posted: 9/9/2008 7:06:43 AM	Ignore PizzaMon Report Abuse
	Is this an electric problem or an oil problem? I'm confused about which excuse to believe in order to justify price increase.
zeljko All-Star Author Greensboro Posts:786 Points:326,150 Joined:Sep 2005	Message Posted: 9/9/2008 7:05:44 AM	Ignore zeljko Report Abuse
	Yet, there is another reason to raise the price...
thomas41546 Champion Author Tennessee Posts:1,700 Points:790,440 Joined:Oct 2005	Message Posted: 9/9/2008 7:05:31 AM	Ignore thomas41546 Report Abuse
	They caused this problem when they cut bact to 75 percent because of lower demand. Now it is the consumer that gets screwed again
ArboretumCop Champion Author Richmond Posts:1,267 Points:1,013,060 Joined:Sep 2005	Message Posted: 9/9/2008 7:03:15 AM	Ignore ArboretumCop Report Abuse
	Well, weather happens!
10pennypincher Veteran Author St. Louis Posts:431 Points:222,225 Joined:Jan 2007	Message Posted: 9/9/2008 7:01:21 AM	Ignore 10pennypincher Report Abuse
	Sounds to me like we NEED to drill MORE WELLS and accelerate production.
Zacchaeus Sophomore Author Missouri Posts:152 Points:1,049,865 Joined:Oct 2004	Message Posted: 9/9/2008 7:01:13 AM	Ignore Zacchaeus Report Abuse
	Oil keeps coming down, must be dealing with it fine .....
amacquarrie Veteran Author Nevada Posts:333 Points:77,235 Joined:Jun 2008	Message Posted: 9/9/2008 7:00:26 AM	Ignore amacquarrie Report Abuse
	any reason to raise the prices
kevski Champion Author Oregon Posts:1,397 Points:198,115 Joined:Feb 2008	Message Posted: 9/9/2008 6:58:55 AM	Ignore kevski Report Abuse
	could take them weeks? why?
eagleeye2008 All-Star Author Wisconsin Posts:516 Points:111,040 Joined:Jul 2008	Message Posted: 9/9/2008 6:58:36 AM	Ignore eagleeye2008 Report Abuse
	MY WALLET IS ALSO "UNDER STRAIN" !!!!
RPetty Champion Author Maryland Posts:4,357 Points:975,715 Joined:Jul 2004	Message Posted: 9/9/2008 6:57:41 AM	Ignore RPetty Report Abuse
	and soon to be Ike..
TheBarefootClub Rookie Author New York Posts:36 Points:21,520 Joined:Nov 2006	Message Posted: 9/9/2008 6:55:53 AM	Ignore TheBarefootClub Report Abuse
	Crude down 32% off the top and heading lower, gas going the other way - got to love a free market economy!! [Edited by: TheBarefootClub at 9/9/2008 9:56:09 AM EST]
MacGyver_1701 Champion Author Indiana Posts:5,199 Points:1,141,850 Joined:Feb 2005	Message Posted: 9/9/2008 6:54:13 AM	Ignore MacGyver_1701 Report Abuse
	Any excuse to keep prices high.
glazarides All-Star Author Akron Posts:556 Points:367,290 Joined:Jul 2006	Message Posted: 9/9/2008 6:53:15 AM	Ignore glazarides Report Abuse
	I bet the oil companies mouths are watering when they see the hurricanes. No wonder they want drill off the Atlantic coast too, then they could raise prices for almost every hurricane than meanders by.
damone2069 Rookie Author Cleveland Posts:10 Points:1,545 Joined:Sep 2008	Message Posted: 9/9/2008 6:51:26 AM	Ignore damone2069 Report Abuse
	WOW!
tigger4prez Rookie Author Iowa Posts:85 Points:173,500 Joined:Sep 2007	Message Posted: 9/9/2008 6:51:16 AM	Ignore tigger4prez Report Abuse
	they must have a panel of idiots whose sole job is to come up with one excuse after another
kanmandoo Champion Author Detroit Posts:1,005 Points:898,260 Joined:Jun 2005	Message Posted: 9/9/2008 6:48:35 AM	Ignore kanmandoo Report Abuse
	they can always come up with some reason to make prices higher
USAFA82 Champion Author Colorado Springs Posts:1,521 Points:259,545 Joined:Feb 2008	Message Posted: 9/9/2008 6:47:36 AM	Ignore USAFA82 Report Abuse
	Move them to Colorado... we don't get hurricanes or earthquakes. We only have two refineries in the whole state and they are owned by the same company, Suncor Energy of Canada.
RochBear Champion Author Minnesota Posts:1,753 Points:504,605 Joined:May 2006	Message Posted: 9/9/2008 6:46:29 AM	Ignore RochBear Report Abuse
	the amount of power a refinery takes is HUGE. They would have to have their own power plant, a back up generator would not begin to meet their needs. These plants are fed by major high voltage power lines. (you know the great big ones with 6 wires, and steel towers) However, I would like to see a new coal power plant right beside the oil refineries. We are going to need more power plants in the near future (as we switch to electric cars) and oil refineries are already on rail lines. So it makes sense to do so.