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BP Exploration to Spend $1.2B in Alaska in '09
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by Tim Bradner Alaska Journal of Commerce Monday, December 08, 2008

BP Exploration (Alaska) Inc. will spend $1.2 billion on capital projects in Alaska in 2009, a 30 percent increase over the $900 million spent in 2008, a company spokesman said Dec. 2. The increase comes even as BP suspends some marginal Prudhoe Bay field projects because of lower crude oil prices and state tax effects.

BP spokesman Steve Rinehart said the $300 million increase over current-year capital spending will be in three new projects as well as the company's 50 percent

Artic National Refuge - Point Thompson U

Liberty Field

share of spending by the Denali pipeline group, a joint venture with ConocoPhillips to plan an Alaska natural gas pipeline. The three new projects BP will invest in include development of Liberty, a small offshore field, continued drilling and testing of heavy oil deposits in the Milne Point field, and BP's share of a planned gas cycling and condensate production project at Point Thomson, east of Prudhoe Bay on the North Slope.

It is not certain that initial drilling at Point Thomson will go forward this winter, however. BP and other leaseowners are engaged in a complex dispute with the state of Alaska, which has refused to issue permits for work to begin at the field. Negotiations are underway on a possible settlement to the dispute.

BP recently announced that it would suspend a $120 million gas processing plant on the western side of Prudhoe Bay because of the deteriorating economic environment caused by lower oil prices and the effects of state taxes on projects in Prudhoe Bay. The tax law does not allow deductions of all costs from Prudhoe Bay and Kuparuk River field projects.

http://www.rigzone.com/news/article.asp?hpf=1&a_id=70417
 
AP
DOE slashes energy demand forecast

Tuesday December 9, 12:26 pm ET
By John Porretto, AP Energy Writer

US govt. slashes expectations for energy demand amid recession; gas prices continue to fall

HOUSTON (AP) -- Oil prices wavered Tuesday amid new reports that the anemic global economy will lead to an even sharper falloff in energy consumption through 2009.
In heartening news for U.S. consumers, however, a new government said home heating costs should be lower this winter than last, and gasoline prices continued to tumble. Pump prices are at their lowest levels in nearly four years.
Light, sweet crude for January delivery fell 39 cents to $43.32 a barrel in midday trading on the New York Mercantile Exchange, after dipping below $43 in earlier electronic trading.
Prices have rebounded from last week's intraday low of $40.50 per barrel, the cheapest oil has been since December 2004.
In its short-term outlook released Tuesday, the U.S. Energy Information Administration said it expects global oil consumption to decline by 50,000 barrels a day this year and by 450,000 barrels a day in 2009, well below earlier forecasts on both counts.
Just last month, the EIA projected global consumption to increase by 100,000 barrels a day in 2008 and to remain flat in 2009. Total world consumption is between 85 million and 86 million barrels a day, according to the EIA.
Should the projections prove true, it would mark the first time in three decades that world crude consumption declined in consecutive years, the EIA said. "If the world economy recovers sooner or is stronger than EIA now anticipates, oil consumption could decline at a slower rate or potentially increase instead, putting upward pressure on oil prices," the EIA said in Tuesday's report. On the supply side, all eyes are on OPEC[more]
http://biz.yahoo.com/ap/081209/oil_prices.html
 
nnuut said:
BP Exploration to Spend $1.2B in Alaska in '09
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by Tim Bradner Alaska Journal of Commerce Monday, December 08, 2008
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Well looks like we'll have another full season of "Ice Road Truckers" to watch:nuts:
 
Oil and gas UP this morning, but Inventories are at 10:35 today, should be a GLUT but was less than expected last week.:worried:

12/10/08
07:57........$43.95......+1.88
08:44........$43.84......+1.77
09:27........$44.17......+2.10
 
Supplies greater than expected!:D

Oil bounces above $45

Stop-gap auto bailout agreement offsets bigger-than-expected supply of gasoline.

By Kenneth Musante, CNNMoney.com staff writer
Last Updated: December 10, 2008: 12:18 PM ET



NEW YORK (CNNMoney.com) -- Oil prices rebounded Wednesday after Congress reached an agreement with the White House on a bailout for the U.S. auto industry. Prices had fallen earlier after a government report showed a bigger-than-expected buildup in gasoline supplies.
U.S. crude for January delivery rose $3.61 cents to $45.68 a barrel Wednesday. Prices had dipped as low as $41.89 after the inventory report's release.
The Department of Energy reported a 400,000 barrel a day increase in crude supplies Wednesday. That was below the 2.7 million barrel buildup expected by analysts polled by research firm Platts.
The report also showed a 3.8 million barrel increase in gasoline supplies, and a 5.6 million build in supplies of distillates, which are used to make diesel fuel and heating oil.
Analysts had expected the report to show a gasoline supplies increase of 1.4 million barrels, and a decline of 1.6 million barrels of distillates, according to Platts.
Auto bailout: The White House and Congressional Democrats reached agreement on a plan to hold off the collapse of the auto industry in the United States, the world's largest oil consumer.
The plan, which could provide $15 billion in loans to troubled General Motors and Chrysler, is expected to keep the companies operating through March and prevent the the layoffs that could occur should one of the Big Three fail. Ford, which is in better financial shape, is not expected to receive any of the $15 billion.
In total, the U.S. auto industry employs about 2 million people nationwide, according to the Center for Automotive Research. That total includes GM (GM, Fortune 500), Ford (F, Fortune 500) and Chrysler workers, as well as dealers and parts manufacturers.
Crude investors have been worried that a decline in the U.S. economy would continue to wear on demand for petroleum-based fuel.
OPEC cuts: [more]
 
Lower demand = Lower Price!:D

Global oil demand to shrink - report

For the first time in 25 years, demand for crude will fall as wealthy nations fall into recession, says International Energy Agency.

December 11, 2008: 6:00 AM ET

OPEC shouldn't cut production


PARIS (AP) -- The International Energy Agency said Thursday that global oil demand will shrink this year for the first time in a quarter-century as rich nations fall into recession and growth slows in the developing world.
The Paris-based agency, which represents the interests of 28 oil-importing nations, also cut its forecast for global demand next year, saying a rebound in demand depends on economic recovery in the second half of 2009.
The IEA cut its forecast for global oil demand this year by 350,000 barrels a day to 85.8 million barrels a day, down 0.2% from 2007.
"The global demand contraction expected in 2008 will be the first since 1983," the agency said in its monthly oil market report.
The IEA slashed its forecast for oil demand in developed nations in the 30-country Organization for Economic Cooperation and Development by 290,000 barrels a day this year and 210,000 barrels a day in 2009.
Demand in non-OECD countries will rise 3.9% this year and 2.9% in 2009, the IEA said, slightly slower than its forecast in its report for November. It said the predicted cuts were linked to the economic slowdown and revised data in Asian countries like Malaysia, Taiwan and Thailand.
Global oil demand will increase 0.5% next year to 86.3 million barrels a day, the IEA said, but it added that this forecast assumes that the plunge in OECD economic growth will bottom out next year and recover in the second half of 2009. The International Monetary Fund has made a similar estimate.
Separate figures for the month of October likewise showed steep falls. The agency said demand in its North American member states fell 8.3% in October, while in OECD states in Europe the decline was only 0.9%.
Oil prices edged higher Thursday in Asia with investors hoping for a significant OPEC production cut next week to underpin prices.
Light, sweet crude for January delivery was up 59 cents to $44.11 a barrel in electronic trading on the New York Mercantile Exchange by midafternoon in Singapore.
http://money.cnn.com/2008/12/11/news/economy/iea_demand.ap/index.htm?postversion=2008121106
 
Oil gets a boost from House auto vote

Passage of $14 billion measure to aid carmakers helps boost sentiment about economy.

By Kenneth Musante, CNNMoney.com staff writer
December 11, 2008: 8:25 AM ET

NEW YORK (CNNMoney.com) -- Oil prices jumped Thursday after the House passed a $14 billion stop-gap measure designed to keep the U.S. auto industry from immediate collapse.
U.S. crude for January delivery rose $2.10 to $45.62 a barrel in electronic trading.
The House passed a bill that would provide $14 billion in loans to automakers General Motors (GM, Fortune 500) and Chrysler, and keep them out of bankruptcy until at least March. Ford Motor (F, Fortune 500), which is in better shape cash-wise than its counterparts, is not part of the $14 billion plan.
The measure, which still faces a vote in the Senate, could prevent a large blow to the economy of the world's largest oil consumer.
An auto bailout has been largely priced in to oil, but a collapse of the U.S. auto industry "would result in a very painful [price] correction, not only in crude oil, but also in the equity markets," said Chris Lafakis, associate economist with Moody's Economy.com.
The U.S. auto industry employs about 2 million workers, according to the Center for Automotive Research. That total includes GM (GM, Fortune 500), Ford (F, Fortune 500) and Chrysler workers, as well as dealers and parts manufacturers.
OPEC cut: [more]
http://money.cnn.com/2008/12/11/markets/oil/index.htm?postversion=2008121108
 
Oil prices near $49 a barrel as dollar falls

Weak dollar outweighs IEA report on weak demand; Oil prices near $49

  • Paretto, AP Energy Writer
  • Thursday December 11, 2008, 1:27 pm EST
HOUSTON (AP) -- Oil prices rose nearly 12 percent Thursday as the dollar continued to lose value, making commodities like crude more attractive.

The falling dollar outweighed a new report from the International Energy Agency, which said energy demand is sliding sharply.
Crude prices have begun to rise before next week's meeting of OPEC, which is expected to slash production.
Congress also appeared closer to approving $14 billion in loans to Detroit's automakers, lending further support to crude prices.
"Probably the biggest factor right now is financials," said Phil Flynn, an analyst with Alaron Trading Corp. "The market is worried that all these bailouts ... means we're going to be printing a lot more money, which makes the dollar weaker. That's really supporting the price."
The U.S. dollar lost ground against other major currencies, making commodities like oil more attractive to investors as a hedge against inflation and dollar weakness.
The euro rose to $1.3227 on Thursday from $1.2988 late Wednesday in New York, while the dollar fell to 91.18 Japanese yen from 92.63 yen in the previous session.
Light, sweet crude for January delivery rose $5.08 to $48.60 a barrel in trading on the New York Mercantile Exchange.
Prices at the pump continued to slide, falling 1.9 cents overnight to a national average of $1.664 per gallon, according to auto club AAA, the Oil Price Information Service and Wright Express. That's 55.6 cents a gallon below what it was a month ago and $1.326 below where it was a year ago.
The Paris-based IEA said Thursday that global oil [more]
http://finance.yahoo.com/news/Oil-prices-near-48-a-barrel-apf-13807993.html
 
Crude drops $2.5 as auto bailout fizzles

Oil prices retreated after news broke that a $14 billion loan package to keep U.S. automakers out of bankruptcy had failed in the Senate.

December 12, 2008: 7:04 AM ET


$1 gasoline


Malaysia (AP) -- Oil prices retreated to below $46 a barrel Friday in Asia after a strong rally overnight, but traders said expectations of a sharp production cut by OPEC will support the market.

Light, sweet crude for January delivery fell $2.78 to $45.20 a barrel in electronic trading on the New York Mercantile Exchange by midafternoon in Singapore.
Prices fell further after news broke that a $14 billion emergency bailout for U.S. automakers had collapsed in the Senate. Overnight, the contract surged $4.46, or 10%, to settle at $47.98.
David Moore, commodity strategist at Commonwealth Bank of Australia in Sydney, said comments by Saudi Arabia's Oil Minister Ali al-Naimi on Thursday that November production by the world's largest exporter was in line with OPEC's recently lowered targets indicated it was serious about output cuts.
"There are expectations that OPEC will move to tighten supplies," Moore said. "Oil prices softened this morning but well within the range we saw last night [despite] worries about falling consumption because of economic weakness."
The Organization of Petroleum Exporting Countries, which accounts for about 40% of global crude supply, has signaled it plans to reduce output quotas at a meeting Dec. 17 in Algeria.
Many analysts expect a production cut of as much as 2 million barrels a day, which would match the combined reductions of two previous output cuts earlier this year.
But they say the success of any production cuts in stabilizing oil price will depend on how closely OPEC members comply with it. OPEC's overall November production was well above quotas agreed to by member states, according to Platts, the energy information arm of McGraw-Hill Cos.
Victor Shum, energy analyst at consultancy Purvin & Gertz in Singapore, said oil prices were [more]
http://money.cnn.com/2008/12/12/markets/oil.ap/index.htm?postversion=2008121207
 
Funny..a few stations here raised the price about .03/gal average overnight.. because of yesterday's high oil....Oh wait, but that was a change from the oil price 6 months ago...yeah right!!:rolleyes: blah, blah, blah.


So don't tell me this BS, that the pump price is not immediatly affected when oil prices change..it's almost instantous..going either way too I've noticed..
 
Buster said:
Funny..a few stations here raised the price about .03/gal average overnight.. because of yesterday's high oil....Oh wait, but that was a change from the oil price 6 months ago...yeah right!!:rolleyes: blah, blah, blah.


So don't tell me this BS, that the pump price is not immediatly affected when oil prices change..it's almost instantous..going either way too I've noticed..
Click to expand...

Todays session for Crude is for:
12/12/2008 Session Contract Detail for Jan 9
It's the same for, New York Harbor RBOB Gasoline
A little less than a Month.
BUT, it can be bought as far out as June 2009:
http://www.nymex.com/lsco_fut_cso.aspx
 
BUT!!! I do agree with you on that Buster. It seems to happen much quicker than it should and if you can remember what happens during a Hurricane threat i'm SURE that the price is effected by many other things than just the price they pay.:)
 
I spoke too soon..during the day, the prices jumped about $.30/gal around here...I ain't even gonna try guessing why:confused:
 
Oil dips as government weighs auto aid

White House eyes $700B financial system bailout funds for automakers, easing worries about economy of U.S., world's largest oil consumer.

By Kenneth Musante, CNNMoney.com staff writer
Last Updated: December 12, 2008: 3:08 PM ET



http://javascript<b></b>:cnnVideo('play','/video/news/2008/12/11/news.energyfix.121108.cnnmoney');

NEW YORK (CNNMoney.com) -- Oil prices fell Friday as investors responded to uncertainty surrounding the government's proposed bailout of the auto industry.

U.S. crude for January delivery slipped $1.70 to settle at $46.28 a barrel.
Prices had fallen to as low as $43.32 earlier in the session after Senate Democrats and Republicans failed to reach a compromise on a $14 billion bill, which would have provided emergency loans to General Motors and Chrysler.
In an effort to reinforce automakers, the White House said it would consider using cash set aside as part of the $700 billion financial system bailout to offer loans to automakers.
"If they don't come up with something, you're not only going to lose a lot of direct jobs, but it will cascade to all the suppliers," said James Williams, energy economist with WTRG Economics in Arkansas. "This will ripple through the economy from Michigan on south."
An automaker bankruptcy would be "too big of a body blow to the markets," said Tom Orr, head of research for brokerage Weeden & Co. "They can't just let them fail. I think it would be disasterous."
Job loss risk: [more]
http://money.cnn.com/2008/12/12/markets/oil/index.htm?postversion=2008121215
 
A few reason why Gas Prices can rise!!:mad:

Why the price for gasoline keeps going up

Posted in September 14th, 2008
by Fredrick ([URL="javascript:void(0);"]Check me out!)[/URL] in General, price of gas
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Why does the price for gas keep going up and never seem to come down. This question had always stumped me, until I came accross this Swiss website. It gives us 20 reasons why the price does not come down.
  1. Opec increases its production
    - gas prices rise
    This is due to the economics of the market that we are all subjected to. The increased demand for oil-tanker capacity raises the cost for shipping over proportion.
  2. Opec reduces its production
    - gas prices rise
    This is classic economics. The supply goes down, but the demand stays constant. The price for the product goes up.
  3. They signed a peace treaty in the Near-East.
    - gas prices rise
    The peace may be fragile. Everybody tries to bunker oil against the next breakout of hostilities. The increased demand raises the price.
  4. Fighting breaks out in the Near-East.
    - gas prices rise
    Hoarding raises the demand and the prices go up.
  5. Consumers reduce their consumption
    - gas prices rise
    This reduction in demand forces the refineries to produce under capacity. This raises the cost per unit of produced gasoline. These costs have to be carried by the end-consumer.
  6. Consumers raise their demand and use more gasoline
    - gas prices rise
    The oil companies fullfill a vital role in our market. By raising the price they counteract a higher dependency on raw oil.
  7. Consumers switch to alternate energy sources
    - gas prices rise
    Compound production for oil derivates becomes more difficult. This ultimately raises the price per unit and has to be carried by the end-consumer.
  8. Severe storms threaten the Gulf Coast
    - gas prices rise
    The supply is endangered. To ensure the supply meets the demand oil companies hoard refined gasoline, thus raising the demand and the price.
  9. Weather conditions are optimal world-wide
    - gas prices rise
    Due to the hoarding that took place when storms threatened demand has come down and refineries cannot produce at maximum capacity. Thus raising the price per produced unit.
  10. Stock piles for oil are full.
    - gas prices rise
    Large stock piles reduce the profit margin. The oil companies are fullfilling an invaluable function by contributing to ensuring the continued supply for the free world -it is only natural that the consumers should pay a part of the price.
  11. Stock piles are low
    - gas prices rise
    The high losses due to stock piling were carried by the oil companies up to now, reducing their profits. This is no longer feasable. The consumers have to foot the bill.
  12. The net-earnings of the oil companies have risen by 380 % compaired to the previous year
    - gas prices rise
    The numbers create an incomplete and distorted picture. The gasoline business itself does not look so good. Some parts of it even run at a loss that has to be covered by other business aspects of the companies.
  13. The net-earnings of the oil companies did not rise significantly compaired to the previous year
    - gas prices rise
    In a free market a product can only exist if it has a proper profit margin.
  14. A member of OPEC stopps production due to inner turmoil
    - gas prices rise
    The supply has diminished the price has been adjusted accordingly
  15. A member of OPEC resumes production of crude oil
    - gas prices rise
    The inflation costs since that time when production was halted was covered by the oil companies - contrary to the dictates of a free market. That cannot continue indefinitely.
  16. New substantial oil field were discovered
    - gas prices rise
    There is lots to do, lets get going. To ensure future supply we have to recover our investment costs. The cost for production keeps going up.
  17. The existing oil field are almost depleted
    - gas prices rise
    It is becoming more and more difficult and expensive to continue meeting the world’s undiminished demand.
  18. Two oil corporations merge
    - gas prices rise
    The merger is a sign of the times. Individual corporations can no longer survive in today’s increasingly competitive environment.
  19. The merger of two oil companies failed
    - gas prices rise
    Government anti-trust agencies prevented the merger and thus the possibility of considerable savings in the production process. The consumer will have to pay the price.
  20. A bag of rice fell over in China
    - gas prices rise
    The loss of the produce owned by the people of the Republic of China has to be replaced. This will use up energy that was not calculated into the original demand estimate. The price of the commodity energy - oil - has to go up.
http://blog.eastern-beaches.mb.ca/2008/09/14/why-the-price-for-gasoline-keeps-going-up/
 
that was absolutely positively the most definitive and insightful article on the price of gas that I have ever read.

funny how some of those exact words are used by "journalists" all the friggin' time.
 
Minnow said:
that was absolutely positively the most definitive and insightful article on the price of gas that I have ever read.

funny how some of those exact words are used by "journalists" all the friggin' time.
Click to expand...
Now we need a list of why the price of gas may fall. I think most of the reasons for it to rise can also make it fall!!! face1.gif
 
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