Is it any wonder, no new refineries are currently under construction in the US. Cheaper to import.

Mark

Scary oil stat of the day courtesy of CNBC:

Annual oil consumption per capital in barrels:

USA......25
Japan....14
China......2
India.......1

Here is a link showing the country ranking in 2004 that generally agrees with those numbers. Daily oil consumption per 1000 ppl

In that link the U.S. is #15, Japan is #32, China #128 and India #149

To help put these numbers in perspective here is total use by country.

Daily Oil Consumption by country

USA is #1 followed by China and Japan with India coming in at #6. I'm unsure of the year of the date.

USA......7.57 billion barrels per year
China....2.38 billion
Japan....2.04 billion
India.....0.89 billion

Just for a little fun with numbers. If the developed countries of the US and Japan could increase oil use efficiency and/or move some oil use over to other sources such as nukes, etc. to the tune of 10% reduction in oil use, current world use could accomodate a nearly 30% increase in Chindia oil use. The bad news is that's only Chindia moving from 3 barrels per person use per year to 4!

Now if we could cut the use per person in the developed countries of the US and Japan by 10% then current world oil use could accomodate a more than doubling (130%) increase in use per person in Chindia (3 to 6.9).

Warning...rambling thoughts to follow: Of course there are other major current users and up and coming users in the world as well that would affect this exercise. If and when China and India ramp up to our use levels it will be interesting times...obviously messing around at the edges of changes in energy use and sources is not gonna cut it. Their increase isn't going to happen overnight either though for the simple reason it can't...we don't have the supply. If supply is contrained due to the lack of switching to other energy sources, in the end whatever economy can most efficiently and productively use oil energy will be the one that can afford to pay for it. Hopefully other sources will be developed at a competitive cost as the timeline of developing countries increased oil usage plays out...till then a recession/depression would whack demand.

Oil down 6.3%

Only $9 in two days.

There was one day not long ago it went up $14 in ONE day.

Keep pressure on to drill offshore and watch it continue to come down.

Heard a caller on Rush this morning... he was an oil guy, still had a brother's brotherinlaw on the rigs along the gulf coast. There are literally hundreds of rigs offline because of the cost of permits and the lengthy process it takes. These were Katrina casualties. If only Congress would streamline that process!

True, but it's under $4/gallon again across the river in Pekin, IL, so I'll take it.

As I said in this thread.... and other threads

Oil pricing

Ever heard of "Bakken Formation"? (sp?... at the moment) Do a Google search.

I'm not sure about pricing, but oil has got to be starting to pile up at US ports.

The pipeline to ship all that stuff has got to be huge, and when people cut consumption by 5-10% then in about 20 days you have an extra day or two supply on hand.

I heard somewhere that the shipment of oil takes something like 60 days. So if you are shipping oil, pretty soon you'll have a whole bunch on hand.

That means somebody is holding the bag on a bunch of expensive oil and will need to get rid of it.

They'll just cut back on production in order to maintain the high price. The Iranians testing missles isn't helping matters.

A fairly high ranking oil exe for Conoco -Phillips told my last week that there are hundreds of oil tankers sitting in ports with no where to unload their oil. All storage tanks are full...

Low gas prices are not the answer, though.

What part of the supply/demand equation do you not get?

With utilities and oil, the equation is 3-part, not 2-part.

Supply/demand/bohica





can I say that on babc?

Do you feel like going through this every 10-15 years?

What part about that vulnerability do you not get? :-D

That graph has oil in the 90 dollar range.

Its 137ish today!