OilMageddon - 64% Of U.S. Oil Production Could Halt Today - Stock Up Now

We all started out naked and 1 day old...
Im not union just so you know...

As workers they couldn't have picked a worse time to do this, what with the oil companies laying off people left and right due to low prices...

There will be plenty of people looking for work, they'll break that strike in a week...

Well great. John Q Public finally catches a break on gas prices and now there might be a labor strike to drive the prices back up!

Sounds fishy to me.

The Strike Is On

[link to www.galvestondailynews.com]

Nope, typical union BS.

Thanks for the warning but how do you stock up on gas? I don't have my own personal tank, all I can do is try to keep the tank full.

Bloomberg on the strike:

[link to www.bloomberg.com]

Refinery Work Stoppage Begins

[link to www.usatoday.com]

Wow, so jealous.

Nothing wrong with good pay but i can promise you you earn it or your out!

It'll be interesting to see market reaction, but I suspect it will be pretty muted. Refineries get shut in all the time for various reasons, and the market is pretty good at adjusting quickly.

For one thing, we have become major exporters of gasoline in the U.S. It is illegal to export raw crude oil, but you can export the finished products that come out the other end of the refinery. We have been exporting a lot lately, so if production drops, it probably means less exports.

[link to www.eia.gov]

Plus we are in contango (future prices higher than today's prices), so people have been stuffing gasoline into storage to sell at higher prices later. You could stop all production and that stored supply would keep you going for quite a while.

Finally, while gas prices might tick up a bit, crude prices on this news would be expected to tick down as the demand for raw crude supply for the refineries would presumably drop.

Anyway, I have to say no chance of OilMageddon.

You fail to see the bigger plcture my friend...

If raw crude price drops even more, companies will be even more squeezed out. So they will not be able to afford to meet the union's demands.

My speculation. Obama will nationalize the refineries OR force them into one quasi-governmental/private entity.

Otherwise, long ruble and #Novorossia .


Blessed -

Rev. Alexander Barackovich Sharptonov
& Mrs. Tawana Destiny Jesseyevna Jacksonov-Sharptonova

Let 'em strike ....there are THOUSANDS UPON THOUSANDS of others who would LOVE to take their jobs.

Not gonna' work.

Oilworkers striking for safer conditions? Jeez after the last bust in 09 every aspect of the petroleum industry is overrun with safety companies that do little more than run up the cost of energy.

Oil workers overpaid anybody who believes that is ludicrous some of the most difficult skilled workers in the world. You earn every penny and are lucky to make it to retirement physically intact. Very few oil companies pay pensions and even when they do it's usually in company stock that may or may not be worth a shit when you retire. Ever heard of Enron.

Right now virtually every bit of storage capacity for crude is full, forcing the still rising production to seek unconventional means like paying 10s of thousands of dollars per day to store at sea in tankers.

Something else is going on here. I smell the Koch brothers trying to stir up the shit pot to do anything to destroy this country's economic structure and implement martial law.

Expect regional fuel shortages, Plunging crude prices and skyrocketing refined liquid products.

35 years in the petroleum industry. Drilling Consultant / "Company Man" by trade. Amateur Gynecologist as a hobby.

Q

pull a Truman and nationalize the refineries

From the fuelfix.com article. Less than 50%

snip
LyondellBasell said in a statement that: “a contemporaneous and orderly transition took place at our Houston Refining site, and the company has now activated a well-developed and pre-prepared work continuation plan at the site that will ensure we continue to operate safely and provide uninterrupted service to meet the needs of our customers. We have negotiated diligently and in good faith with the USW from the beginning and we remain committed to negotiating in good faith for a fair and responsible contract.”

Said Marathon Petroleum: “Marathon Petroleum Company’s Catlettsburg, Ky., and Galveston Bay, Texas, refineries are among those chosen by the USW for work stoppages. MPC has plans in place to ensure the continued safe operation of its facilities and stands ready to continue negotiations at the local level.”

snip

The key here, ST, is that they've called it an "unfair labor practice" strike. That means that while company employees not on strike can do any job they want, replacements can't be brought in. Only if a strike is an "economic" strike (wages, hours, that sort of thing) can new labor be retained until settlement takes place.

question it.s for u.s.a. only or for général world..
et comment ceci se dirige for a world

U.S for now, but bi-products will eventually seep into all markets... Danke...

donc.. it.s a situation interne/usa..only...

Thanks for the info and updates OP!

My recent experience, just to add to the list.

I just took a trip from Wash. DC to Indiana. On the way back I stopped at two gas stations that were out of gas and one that only had regular (no plus or premium). Not sure exactly where cuz I didn't think much of it at the time. One was at one of my last stops though - so maybe Pennsylvania?

Keep the info flowing! Great stuff! I might have to buy a mini oil contract :P

will do...

These are refineries, not oil drillers. They take the raw crude and process it into the different products industries and consumers use.

Refinery economics are driven by the "crack" - the price difference between the market price of the raw crude and the market price of the various outputs of the refinery.

I'm curious, do you really expect refined product prices to spike? I would expect the crack to widen a bit, but you think it will be significant?

ok.jus speak french help me i read john koyle prophe ties and ..i said ..a little bit transport in usa ect...
just think this (va emmener xxx+ cie transport to fail...
it,s a possibility...+ (affaiblissement tranport intérieur,
moins de transport a un cout devenant aléatoire up,ceci étouffe le commerce et de moins en moins d.économies ,juste une idée de...à venir ett ceci me rapelle john koyle propheties quand il disait . ..le transport dans le pays était très lent t restreint...est-ce ceci que vous exprimez ..possible..alors..la suite ,vient pour chacun de nous.

Were you around and aware in 1973? I was a little hiccup like the Saudis actually expecting to be paid for their oil sent the fuel price from 35 cents per gallon to 75 cents overnight. Regional shortages, rampant inflation, economic stagnation leading to a steady decline in middle class wage to inflation rates that have never recovered. I made 6 busk an hour as a roughneck in 1971. I was doing about as well then as I do now at $75.

Don't we get some of our oil from refineries in the states?

Right! I'll echo this. It's inconceivable for workers to walk off their job now because it may not be there for them at a later point in time. The union bosses don't care if the companies are facing serious headwinds. They want to get paid from a trough that is running dry.
That's why unions suck! It's not about safety and never was. It's about the money!

How many of you forgot that unions and govdotorg have and continue to collude to destroy the middle class?
Nothing has changed and they will do nothing that doesnt destroy the independence of the producers and the productive public.

The entire reason gas is cheap right now is because TPTB set the price low on purpose to make Russia's economy bleed indefinitely.

Gas will stay cheap for at least five more years, possibly ten. However long it takes for Russia's economy to completely collapse.