Conoco refuses Saudi offer of extra oil

[UpInArms]

http://www.forbes.com/business/energy/newswire/2004/05/25/rtr1384444.html

NEW YORK, May 25 (Reuters) - U.S. oil refiner ConocoPhillips (nyse: COP - news - people) turned down an offer to take extra oil from top OPEC exporter Saudi Arabia because the oil was too heavy a grade, a trader at the company said on Tuesday.

"We are full of heavy grades, we really didn't have the appetite for any more," said the trader.

The trader said even with Saturday's outage of the U.S. Gulf Mars platform for up to three weeks, Conoco's supplies were adequate.

"There will be some minor cutbacks in deliveries, but not significant enough to impact refining operations," said the trader about the Mars outage.

U.S. refiners said they were contacted last week by Saudi Aramco President Abdullah Jumah to take extra barrels loading in June outside of term contracts.

...more...

[BadGimp]

1. "No Thanks"

We are perfectly happy the the aggregious profit margins we are seeing from gouging Amerikun Con(ed)summers, thank you very much.

[crossroads]

2. They have absolutely *no* motivation to -

they aren't worried about the price, their profits are the *reason* for the price!
:kick:

[punpirate]

3. Curious...

... I thought just about everything in the Arabian Peninsula was Saudi light crude....

[Wwagsthedog]

10. Nope

Ghawar, Shaybah, Safaniya, etc......different oil fields, each with its own characteristics, location and geology. The Saudis usually don't try to push the heavy stuff on refineries that aren't set up for it. The claim that they will increase their production by 2 mbpd is true only if buyers want heavy crude. Because of present day pollution controls, it is much more expensive to refine heavy crude which usually contains more sulpher. On top of all that, it is no secret that US refineries are either running at capacity or, cynically, at a capacity which is most profitable. Right now, the US is supposed to be importing over one mbpd of gasoline.

For more on energy issues, check here -

http://www.financialsense.com/fsu/posts/dancy/diner.html

Dancy updates this weekly.

[punpirate]

11. Thanks. n/t

[Don_G]

4. Isn't That Interesting

We can't take "your" oil to ease a "national problem" because our record profits didn't include the toll, logistics or maintainence required on our refining facilities beyond "Unca Dick's double-seceret Media probation" order as established by Dimbo's Executive Order 13303.

The old "We have your oil and money while you have squat" invasion order.

[havocmom]

5. Just more evidence that the fuel problem is created here in the USofA

by the companies doing the refining.

People park your cars whenever you can. Just leave them sit as much as you can. Buy as little as you can get by on. Hit these greedy bastards who are holding our military personnel hostage in Iraq and us hostage in our own towns.

Stop buying anything you can. Write to merchants you used to patronize and apologize for not supporting them more with your business, but with the current fuel situation, well, you just can't justify spending the cash for the gas all those shopping trips require.
Write letters to editors. Write to radio and TV stations.

And for the sake of the nation, help poor people get to the polls to vote. THAT is a good expenditure of gasoline.

[porkrind]

6. The problem here in the USofA is our sinking dollar (down 1/3rd).

Thanks to the thieves in charge, the dollar has lost 1/3rd of it's value against the euro (effectively against the rest of the world).

It doesn't take a financial genius to predict that imported products like oil are now more expensive.

---

Read about the Right-Wing "Master Plan": http://www.zmag.org/chomsky/sam/sam-contents.html

Have you read "War is a Racket"?: http://lexrex.com/enlightened/articles/warisaracket.htm

[happyslug]

9. NO, you do NOT sell heavy oil when you have light to sell

"Light Oil" being easier to refine into usable fuel, heavier oil require more refining to make the oil into fuel.

It was for this reason Libya was able to sell its oil at a higher price than Saudi Arabia for years, Libyan oil being almost ready for use as Diesel fuel right out of the ground, Arabian Oil needs more refining (Please note when people referred to Arabian Oil a light, it is still heavier than Libyan oil).

Why would the Saudis offer HEAVY oil if it had any LIGHT oil to sell? Could it be that is ALL Arabia HAS to sell? Remember the House of Saud has told Bush it will increase production, but it looks like it can only do so with a heavier grade of oil than it is use to shipping.

This looks bad, if the Saudis HAVE to ship heavier grade oil, the cost of the oil shipped may drop compared to the light oil the Saudis are shipping (to reflect the increase cost to refine). The implication is that this is the only oil the Saudis can ship in addition to what they are shipping today and the only way the Saudis can meet they promise to Bush to increase oil production and thus decrease price.

More evidence of Peak production in Arabia.

oil was to heavy for the refinery to refine to usable fuel and as such an attempt by the Saudis to

[Geo55]

14. Oil

"Why would the Saudis offer HEAVY oil if it had any LIGHT oil to sell? Could it be that is ALL Arabia HAS to sell? "

Yes....this is their so called "spare capacity".....They crank up crappy wells.

[keithyboy]

7. They are making too much profit...don't need more output.

We are hostages to the Bush regime.

[umtalal]

8. That is because they prefer light weight Libyan oil

and Kadaffi is handing it to them.

[salin]

12. Heard on NPR's Market Place a few years ago... that part of the problem

is a whole lot of speculation going on... by.. the displaced (Enron) energy traders. They had to go somewhere...

[Don_G]

13. Enron Is Still Active?

And still guessig without a conviction to their name?

Well, yeah...they did furnish a few Cabinet-level officals and contribute over 10 Million to Dimbo's favorite charity--Bush/Cheny 2004.