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Started By
Message
Gov orders emergency release of 500,000 barrels of oil from strategic reserve
Posted on 8/31/17 at 8:22 am
Posted on 8/31/17 at 8:22 am
quote:
LINK
The first emergency release from the reserve since 2012 will be delivered to the Phillips 66 refinery in Lake Charles, Louisiana, according to a department statement. That plant has not been affected by the storm, which has hammered the Gulf Coast for several days.
The release includes 200,000 barrels of sweet crude and 300,000 barrels of sour crude oil, the statement said.
The reserve, established in the early 1970s after the Arab oil embargo caused panics over fuel supply, currently contains 679 million barrels of oil. It is a small release of crude for a country that uses nearly 20 million barrels of petroleum daily.
Harvey shut down about a quarter of the country’s refining output after it lashed Houston with record floods before it spread to the Louisiana coast, another refining hub.
They are trying to minimize fuel shortages in the medium term in the south central USA. Apparently the energy supply chain in south Texas took a bigger hit than a lot of people outside the region thought.
The OT knew this 48 hours ago.
SIAP
This post was edited on 8/31/17 at 8:27 am
8
Posted on 8/31/17 at 8:25 am to member12
That fricking Trump! I have no idea why I should be outraged over this and I'm know I shouldn't be, but I'm pretty sure he had his slimy little itty bitty hands in this so I AM frickING OUTRAGED OVER IT.
Posted on 8/31/17 at 8:27 am to member12
Crude supply isnt the problem, its loss of refining capacity
Not sure how this fixes that
Not sure how this fixes that
Posted on 8/31/17 at 8:29 am to TigerFanatic99
quote:
That fricking Trump! I have no idea why I should be outraged over this and I'm know I shouldn't be, but I'm pretty sure he had his slimy little itty bitty hands in this so I AM frickING OUTRAGED OVER IT.
Yep. Looks like they are trying to reduce the likelihood of a drawn out fuel shortage.
Posted on 8/31/17 at 8:29 am to member12
I wouldn't think crude would be the bottleneck as much as refined gas at this point. South LA refineries are up and running but the Houston area has a lot of them that likely aren't running right now.
Posted on 8/31/17 at 8:29 am to TigerFanatic99
Me too
That and the damn Cajun navy hogging all the glory but blm and antifa are helping too damnit
That and the damn Cajun navy hogging all the glory but blm and antifa are helping too damnit
Posted on 8/31/17 at 8:29 am to Cosmo
quote:
Crude supply isnt the problem, its loss of refining capacity
Not sure how this fixes that
Yeah, I'm a but confused as well. Only thing I can imagine is the supply chain was affected in some capacity.
Posted on 8/31/17 at 8:32 am to Cosmo
quote:
Crude supply isnt the problem,
So a hurricane sat over the Gulf of Mexico for over a week and you don't think the supply was disrupted? I'm not following your logic.
Posted on 8/31/17 at 8:32 am to slackster
quote:
Only thing I can imagine is the supply chain was affected in some capacity.
This. They probably got some bad news out of Texas and are trying to hedge against a longer term shortage.
Not a good sign that they had to do this IMO. Harvey is a real bastard.
This post was edited on 8/31/17 at 8:33 am
Posted on 8/31/17 at 8:36 am to Cosmo
quote:
Crude supply isnt the problem, its loss of refining capacity
Not sure how this fixes that
Yeah, we actually have a glut of crude right now.
Posted on 8/31/17 at 8:37 am to Cosmo
quote:
Crude supply isnt the problem, its loss of refining capacity
The major pipelines are not sourcing bbls from Houston (Colonial & Explorer), the blending of gasoline is at a stand still in terminals, barge & vessel traffic is zero. The product is there, we just can't get it into the pipe to get it to the station.
There are refineries in the Houston area that are still running.
Posted on 8/31/17 at 8:38 am to member12
That's a pretty unsignificant amount. I'm guessing it came from the strategic reserve in hackberry where they have over 220M barrels
Edit: I didn't realize they could or do separate by sour/sweet
Edit: I didn't realize they could or do separate by sour/sweet
This post was edited on 8/31/17 at 8:39 am
Posted on 8/31/17 at 8:41 am to member12
quote:
Gov orders emergency release of 500,000 barrels of oil from strategic reserve
I misread your title and I was wondering why JBE thought he had power over the oil reserves. "Good luck with that, John BEL!"
Posted on 8/31/17 at 8:42 am to member12
quote:
They probably got some bad news out of Texas
Yeah, everything is fricking under water.
You can't open valves and run pump motors under water. It will take some time to dry everything out and make repairs, this was expected.
Posted on 8/31/17 at 8:43 am to BigPerm30
quote:
So a hurricane sat over the Gulf of Mexico for over a week and you don't think the supply was disrupted? I'm not following your logic.
Most of the gulf oil is coming ashore through Louisiana which wasn't affected very badly. The issue is the flooded refineries in Texas not being able to run and refine the product or transport the ample oil supplies into the refineries. That is why you are seeing oil prices drop (short term glut) and gasoline prices spike (short term shortage) because refining capacity just went down. With the decline of natural gas production offshore and the rise of unconventional onshore oil hurricanes now seem to have more of a bearish effect on energy prices other than the refined products. More oil being made available won't matter if it can't reach refineries. There's plenty of it in storage as it is.
This post was edited on 8/31/17 at 8:45 am
Posted on 8/31/17 at 8:43 am to offshoreangler
quote:
There are refineries in the Houston area that are still running.
Hopefully they'll be back online soon.
I imagine this also has to do with concern over the hurricane sitting around over a production areas in the Gulf of Mexico for a long time.
Posted on 8/31/17 at 10:23 am to dewster
I thought only a small percentage of rigs are affected by a Texas hurricane.
I can say some of the prices for crude are shockingly low right now.
Any refiner online is going to have a really good month when it comes to margins.
I can say some of the prices for crude are shockingly low right now.
Any refiner online is going to have a really good month when it comes to margins.
This post was edited on 8/31/17 at 10:23 am
Posted on 8/31/17 at 10:42 am to BigPerm30
We produce 10% of the GOM oil alone on my Platform. We didn't shut in during the storm.
Posted on 8/31/17 at 10:49 am to GeneralLeeAwesome
Which platform?
Posted on 8/31/17 at 11:34 am to GeneralLeeAwesome
quote:
GeneralLeeAwesome
Welcome baaw lurker
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