Gas & Oil News

"April Fools Day" is the Jokesters day to shine. But it seems that the EPA has been joking around with the miles per gallon estimates they have been giving us for years! The fact of the matter is when the EPA estimates the miles per gallon numbers on "City Driving" and "Highway Driving"; they leave out some very important facts! They don't tell us the vehicles are warmed up before they do the tests. They don't tell us the tests are done in a completely controlled environment in doors. The tests don't take into account real driving conditions like; being stuck in a traffic jam with the motor running and you are going no where, waiting for a light, waiting for a train, driving in the rain or snow storm, circling around in a parking lot looking for a place to park, or how about those really cold mornings when you have to warm up your car before you can get going. Well it looks like the joke is on the EPA now. Congress is making them do a rethink on how they calculate miles per gallon estimates. But they always did tell us, "your actual mileage may very".
Davitte’ Lanier
Petroleum Industry Analyst

NEW: Bill calls for updated testing on vehicle gas mileage:
http://www.mysanantonio.com/business/stories/MYSA033105.gassider.en.1911a629c.html

US Consumers Can't Trust Mileage Estimates:http://www.shortnews.com/start.cfm?id=42309&rubrik1=Automotive&rubrik2=Accessories&rubrik3=All&sort=1&sparte=4

Gas & Oil News

Here in the US, there was flurry of noise yesterday about the Energy Information Administration reporting a surprisingly large increase in inventories of crude oil last week. True as it is, crude oil inventories being up to the highest level in nearly three years, dose not translate into high gasoline inventories, and lower prices at the pump. An increase in oil inventories, bought at a premium price, will not bring down the price of a gallon of gasoline. Further more, what good is a surplus of crude oil if the US doesn't have the refinery capacity to turn it into gasoline! US refineries are in the process changing from winter blends to summer blends of gasoline. During this transition, gasoline production is low. On a good day, with all of the United States refineries running at 90 to 95% production capacity, they can barely keep up with demand. Therefore, the upward price pressure on a gallon of gasoline is here to stay for a while!
Davitte’ Lanier
Petroleum Industry Analyst

Gas & Oil News

With gasoline prices setting new records with every passing day, be prepared for the "One-Two Punch", at the pump, this Memorial Day weekend. As I've said, on more than one occasion, there is no “Oil Crystal Ball” when it comes to predicting oil prices.
But with gasoline prices, you can bet they will move in lock step with oil prices. After crunching the numbers, I wouldn't be surprised to see the National Average of a gallon of regular gasoline going for around $2.40. Here's the scary part. By next year at this time, $2.40 may seem like a bargain!
Davitte’ Lanier
Petroleum Industry Analyst

Gas & Oil News

The oil industry shoulders a burden I believe will be (and is) beyond their ability to carry alone! Without a "World Wide" reduction in the rate of oil consumption and serious efforts to create new sources for "Global Energy" needs, there is big trouble ahead. The well is running dry!
I highly recommend you take the time to read about these facts. It is quite alarming to realize this reality!
Davitte’ Lanier
Petroleum Industry Analyst

New oil discoveries outpaced by increasing demand:
http://feeds.bignewsnetwork.com/?sid=77d761df72320511

Gas & Oil News

There seems to be a developing concern over the reliability and safety of the antiquated refineries through out the United States.
Davitte’ Lanier
Petroleum Industry Analyst

Texas explosion raises concerns about aging refineries
http://www.csmonitor.com/2005/0325/p02s01-usgn.html

Safety Questioned at Texas Refinery in '04
http://www.lasvegassun.com/sunbin/stories/nat-gen/2005/mar/27/032709786.html

Ageing refineries add to US woes at the petrol pumpsBy Sheila McNulty Published: June 7 2004 04:00 Last updated: June 7 2004 04:00
A lack of spare capacity in the ageing US refinery market has helped contribute to record petrol prices, which have caused discontent among consumers during the peak driving season. Cumbersome restrictions on new refineries and a lack of commercial incentives lie behind the industry's lack of expansion. "The average consumer, when they pull up to the pump, thinks that gasoline is gasoline," said Dave O'Reilly, Chevron Texaco chief executive. "But behind that it's anything but."

Gas & Oil News

For the past Twenty-Five years not one new oil refinery has been built in the United States. Without growth you have decay. No matter how much oil you add to the coffers, in the US, with out the ability to process the crude oil into a consumable product, there will be no relief from upward price pressure on gasoline…
Davitte’ Lanier
Petroleum Industry Analyst

Gas & Oil News

I can think of no consumer product, or for that matter any product or service, that won’t feel the squeeze of higher oil prices. Every single thing one can buy at one time or another is transported by ship, rail, truck or car. As the price of oil goes up the cost to manufacture and distribute everything will go up. This increase in cost is passed along to the end user through higher prices across the board. Compounding this inflationary problem is the fact that the average consumer has less disposable income because they are paying a lot more for gasoline. There is only one course of action that may be able to slow down this “Dooms Day” scenario! We have got to get more miles out of the gasoline we buy, and conserve gasoline every way we can! This is a “Global” problem!
Davitte’ Lanier
Petroleum Industry Analyst

Easter Apparel Sales Down Do To; Early Easter, Cold Weather And Gasoline Prices:
http://msnbc.msn.com/id/7293451

BP Refinery Blast News Up Date:
BP blast could mean billions in liability:
http://www.msnbc.msn.com/id/7286825

World oil price up after US refinery blast:
http://news.xinhuanet.com/english/2005-03/24/content_2739835.htm

Oil blast toll hits 15 as blame game starts:
http://www.theaustralian.news.com.au/common/story_page/0,5744,12659616%255E2703,00.html

Cause of refinery blast still elusive, but terror ruled out:
TEXAS CITY, Texas (AP)
http://www.usatoday.com/news/nation/2005-03-25-plant-blast_x.htm

Couple Died in Refinery Blast Together
By LISA FALKENBERGASSOCIATED PRESS TEXAS CITY, Texas:
http://www.lasvegassun.com/sunbin/stories/nat-gen/2005/mar/25/032507717.html

Refinery Had Fire a Day Before Blast
By PAM EASTONASSOCIATED PRESS
TEXAS CITY, Texas:
http://www.lasvegassun.com/sunbin/stories/nat-gen/2005/mar/25/032507649.html

Gas & Oil News

Yesterday I put together what I thought was a relatively sobering observation of the reality we face concerning the price of oil. Then later in the day, I heard about the explosion at the refinery in Texas. The loss of life cannot be replaced and that saddens me. The pain of the injured and the loved ones involved will go on for a long time after the repairs are completed at the refinery. But still, the oil will flow….
Davitte’ Lanier
Petroleum Industry Analyst

(Below are Links to the news articles reporting of the explosion)

Texas blast reverses oil price slideBy Rhys Blakely, Times Online
http://business.timesonline.co.uk/article/0,,9072-1539821,00.html
Oil price rise fears after inferno
http://news.scotsman.com/uk.cfm?id=314702005
Texas oil plant blast 'kills 14'
http://news.bbc.co.uk/2/hi/americas/4377519.stm
14 Feared Dead in Texas Refinery Blast
By PAM EASTONASSOCIATED PRESS
http://www.lasvegassun.com/sunbin/stories/nat-gen/2005/mar/23/032303553.html
BP Refinery Blast in Texas Drives Gasoline Price to a Recordhttp://www.bloomberg.com/apps/news?pid=10000085&sid=aLrfQ0.MgH1c&refer=europe

Gas & Oil News

Some Analysts feel, that Market Trend and Speculation in buying are the primary forces driving oil prices up. First of all, a “Trend” is a record of the past and cannot accurately predict the future out come of anything. Furthermore, Speculation is nothing more than calculated gambling. To try to understand why oil prices are so volatile, may better be understood by asking the question, “Why are the powers that be, buying more oil than they are actually consuming?” The reality of the oil (Supply & Demand) situation is that there is enough to go around right now. The World is at equilibrium! The underlying fear of a major disruption, caused by an act of terrorism or a natural disaster, is creating a need. A need for nations to build up a “Strategic Reserve” of oil! This over zealous buying is further fueled (no pun intended) by the ever growing demand of China (right now using about 1/3 of world production) & India’s huge increasing need for oil.
Davitte’ Lanier
Petroleum Industry Analyst …..(for BJ)

(Some stuff of interest to read)
Hot Money And Hot Oil:
http://money.cnn.com/2005/03/15/commentary/column_hays/hays/index.htm
World crude prices become unstable:
http://www.expressnewsline.com/phpnews2/news.php?action=fullnews&showcomments=1&id=2568
Chinese demand set to push Opec to limit:
http://news.ft.com/cms/s/77f2d8ee-8059-11d9-bd50-00000e2511c8.html
Bush is worried about rising gasoline prices:
http://money.cnn.com/2005/03/16/news/economy/gas/index.htm
China raises gasoline price by 7%:
http://www.chinadaily.com.cn/english/doc/2005-03/23/content_427450.htm

SPECIAL NEWS BRIEF:
14 Feared Dead in Texas Refinery Blast
By PAM EASTON,
ASSOCIATED PRESS
http://www.lasvegassun.com/sunbin/stories/nat-gen/2005/mar/23/032303553.html

Gas & Oil News

Some Quick Notes:

It Looks Like New Zealand Figured out they need to stock pile up on oil, and buy some of the dwindling balance of crude… http://xtramsn.co.nz/news/0,,11981-4223137,00.html

New Crime Wave… Gas-up Don’t Pay… Drive Away…..
http://www.arabtimesonline.com/arabtimes/breakingnews/view.asp?msgID=8343

I am compelled to present to my “Blog Readers” facts and opinions about what makes gasoline prices go up and down….. Now, lately prices seem to be going mostly up….
This following article, I believe is one groups opinion on why…
http://www.cnn.com/2005/US/03/22/iraq.oil/index.html

Gas & Oil News

GM is starting to realize the need to rethink their position in the SUV market. As the cost of “Gas Dollars” to get from point “A” to point “B” goes up, SUV sales go down.
Angela Bettis Staff Writer at WISC TV , shares some insight on the realities we face today! (below is the Link to the article she wrote)
http://www.channel3000.com/news/4301882/detail.html

Davitte’ Lanier
Petroleum Industry Annalist

Gas & Oil News

There is no “Oil Crystal Ball”! Although, the one thing we can be sure of is, the amount of oil we have left to consume is “Finite”. Whether we’ve used up 1/3 1/2 3/4, or somewhere in between, it will all be gone sooner or later! The more people who realize this fact, the more it will cost to control and buy the dwindling balance. There are some highly intelligent people gathering data to try and determine how much is left.
One group working on this daunting task is the Association for the Study of Peak Oil (ASPO). (below is a Link to their opinion)

http://www.asponews.org

Last November, Katie Benner, CNN/Money staff writer, wrote an article on this subject I highly recommend reading…

http://money.cnn.com/2004/11/02/markets/peak_oil/index.htm

Is $4 a gallon on its way? I think so. It’s just a matter of time and about 85 Cents more a gallon in some US Cities. Guess what, I’m not alone, Bush thinks so too!

Davitte’ Lanier
Petroleum Industry Annalist

DRUDGE REPORT
WHITE HOUSE STUDIES $4 GALLON 'NIGHTMARE' SCENARIOSun Mar 20 2005 20:00:58 ET**Exclusive**President Bush's inner circle has become preoccupied with soaring gas prices and its toll on the economy, a well-placed White House source said over the weekend.Bush has quietly asked for a review of any and all economic fallout on the nation if gas prices continuing racing up and over the psychological line of $3 a gallon, as they have in recent weeks in some locations, the source explains. Bush's top economic advisers have conveyed to the president that a "nightmare" scenario of $4 a gallon is extremely unlikely in the short term."The seasonal run-up of gas prices has been tough this year, but like every year in the past two decades, we expect we will will see some easing," the source claims from Washington.Developing...

Gas & Oil News

This Whole Oil Thing (that’s driving prices up) is all about the fact that everyone is trying to get what they can get now! There is an underlying fear that tomorrow prices will be higher. This fear is based on a very possible disruption of supply.

Davitte’ Lanier
Petroleum Industry Annalist
http://sanfrancisco.bizjournals.com/sanfrancisco/stories/2005/03/14/daily47.html?jst=b_ln_hl

Gas & Oil News

The “Fear” of Future Demand Increases on Crude Oil Has The Conventional Thinking of Supply & Demand, Determining Price, Confused and Confounded…
(this is some must read stuff)
1 http://money.cnn.com/2005/03/17/commentary/column_hays/hays/index.htm

2 http://www.iht.com/articles/2005/03/16/business/opec.html

3 http://www.finfacts.com/irelandbusinessnews/publish/article_1000911.shtml

4 http://www.rockymountainnews.com/drmn/business/article/0,1299,DRMN_4_3628027,00.html

Fast Money And Speculators Controlling The Oil Market, “Another Bubble”?
http://money.cnn.com/2005/03/15/commentary/column_hays/hays/index.htm

Save Up To 20% Buying Gasoline…
http://www.cheatatshopping.com/Splashgoogle/gas.html

Gas & Oil News

The New Reality of Higher Prices For Oil
Looking Else Where:
http://news.ft.com/cms/s/94c7354c-957f-11d9-bc72-00000e2511c8.html

Demand Soon Could Outstrip Supply:
http://www.oilandgasonline.com/content/news/article.asp?docid=baefb642-7215-4cde-8d7f-2acc9af4642d

Opec rise in output quota fails to restrain oil price:
http://news.ft.com/cms/s/359f845a-964e-11d9-8fcc-00000e2511c8.html

Lack of new refining capacity hurts oil supplies:
http://news.ft.com/cms/s/bf32d5b2-9277-11d9-bca5-00000e2511c8.html

Gas & Oil News

Find out about, those so-called gas saving gadgets!(Click on the link below)
http://www.wcpo.com/wcpo/localshows/dontwasteyourmoney/13a77f28.html