Monday, August 07, 2006

Rantings about the gas prices......

This whole gas situation drives me crazy. It seems to me that the oil companies are doing nothing short of driving up the price of gas to boost profits. They aren't even reinvesting the profits into their equipment to keep it running. This makes it easy to justify higher prices when equipment breaks down. I may be way off in my opinions, but I have seen anything to change my thinking.

In lieu of my complaining, I am switching this blog to a completely open forum because I want to start hearing from people. Americans need to find the source of these fuel issues and solve them.

If the oil executives are manipulating the prices to their advantage, then they should be prosecuted.

If the environmentalists are prohibiting us from tapping into domestic resources, then they should be dealt with harshly (ban them from using all petroleum products). Remember 9/11, there was only asbestos insulation halfway up the towers because of environmentalists. I hope they feel guilty.

If the car manufacturers are holding back technology to keep gas vehicles around, then they should be prosecuted also.

Enough from me. If anyone's out there, speak your mind!!!
Hugh

BP shutdown to remove 8 pct. of US crude
By MARY PEMBERTON, Associated Press Writer

Oil company BP scrambled Monday to assess suspected pipeline corrosion that will shut shipments from the nation's biggest oilfield, removing about 8 percent of daily U.S. crude production and driving oil prices sharply higher.

BP, which is already facing a criminal investigation over a large spill in March at the same Prudhoe Bay oilfield, said it did not know how long the field would be offline. "I don't even know how long it's going to take to shut it down," said Tom Williams, BP's senior tax and royalty counsel.

While BP suspects corrosion in both damaged lines, it can't say for sure until further tests are complete. Workers also found a small spill of about 4 to 5 barrels, which has been contained and is being cleaned up, BP said.

The news sent the price of light, sweet crude oil up $1.53 to $74.57 a barrel in electronic trading Monday on the New York Mercantile Exchange.

Steve Marshall, president of BP Exploration Alaska Inc., said Sunday night that the eastern side of the Prudhoe Bay oilfield would be shut down first, an operation anticipated to take 24 to 36 hours. The company will then move to shut down the west side, a move that could close more than 1,000 Prudhoe Bay wells.

Once the field is shut down, BP said oil production will be reduced by 400,000 barrels a day. That's close to 8 percent of U.S. oil production or about 2.6 percent of U.S. supply including imports, according to data from the U.S. Energy Information Administration.

The shutdown comes at an already worrisome time for the oil industry, with supply concerns stemming both from the hurricane season and instability in the Middle East.

A 400,000-barrel per day reduction in output would have a major impact on oil prices, said Tetsu Emori, chief commodities strategist at Mitsui Bussan Futures in Tokyo. A barrel contains 42 gallons of crude oil.

"Oil prices could increase by as much as $10 per barrel given the current environment," Emori said. "But we can't really say for sure how big an effect this is going to have until we have more exact figures about how much production is going to be reduced."

But Victor Shum, an energy analyst with Purvin & Gertz in Singapore, said he expected the impact to be minimal since crude inventories are high.

"So while this won't have any immediate impact on U.S. supplies, the market is in very high anxiety. So any significant disruption, traders will take that into account, even though there is no threat of a supply shortage."

Marshall said tests Friday indicated that there were 16 anomalies in 12 areas in an oil transit line on the eastern side of Prudhoe Bay. Tests found losses in wall thickness of between 70 and 81 percent. Repair or replacement is required if there is more than an 80 percent loss.

"The results were absolutely unexpected," Marshall said.

BP America Chairman and President Bob Malone said Prudhoe Bay will not resume operating until the company and government regulators are satisfied it can run safely without threatening the environment.

"We regret that it is necessary to take this action and we apologize to the nation and the State of Alaska for the adverse impacts it will cause," Malone said in a statement.

The troubles at the Alaskan oilfield add to other problems for BP in the United States, where the company is the largest oil producer, following an explosion at its Texas City refinery that killed 15 workers in March 2005 and a trading scandal.

The shutdown comes six months after the North Slope's biggest ever oil spill was discovered on a Prudhoe Bay transit line. Some 267,000 gallons of oil spilled. BP installed a bypass on that line in April with plans to replace the pipe. Only one of BP's three transit lines is now operating.

BP puts millions of gallons of corrosion inhibitor into the Prudhoe Bay lines each year. It also examines pipes by taking X-rays and ultrasound images.

BP has a 26 percent stake in the Prudhoe Bay field, meaning its own production would be cut by 100,000 barrels a day, or around 2.5 percent of the company's worldwide production, said spokesman David Nicholas. He declined to provide any forecast on the impact of the shutdown on earnings.

BP shares dropped 2 percent to 623 pence ($11.89) on the London Stock Exchange.

A prolonged Prudhoe Bay shutdown would be a major blow to domestic oil production, but even a short one could be crippling to Alaska's economy.

Alaska House Speaker John Harris said it was admirable that BP took immediate action, although it's sure to hurt state coffers. "This state cannot afford to have another Exxon Valdez," said Harris, R-Valdez.

The Exxon Valdez tanker emptied 11 million gallons of crude oil into Prince William Sound in 1989, killing hundreds of thousands of birds and marine animals and soiling more than 1,200 miles of rocky beach in nation's largest oil spill.
___
AP Writers Matt Volz in Juneau, Alaska, and Jane Wardell in London contributed to this report.

Oil Company Total 2Q Profit Up 12 Pct.
Thursday August 3, 5:38 pm ET
Rise in Oil Prices Offsets Production Decline for French Oil Company Total

PARIS (AP) -- French oil company Total SA reported a 12 percent jump in net profit for the second quarter Thursday as a rise in oil prices offset a sharp decline in production due to disruptions in Nigeria and maintenance projects.

Last week, five of the world's largest oil companies -- BP PLC, Chevron Corp., ConocoPhillips, Exxon Mobil Corp. and Royal Dutch Shell PLC -- reported combined earnings in the second quarter of $34.6 billion, up 36 percent from a year earlier.

The average price for crude oil was $69.90 per barrel during the second quarter -- up 35 percent from last year, Total said. Overall output slid 9 percent during the quarter to 2.29 million barrels of oil equivalent per day due to disruptions in Nigeria and Venezuela, as well as maintenance projects, the company said.

Thursday, August 03, 2006

Israel Steps Up Fire:
"WAR REPORT: Israel Steps Up Fire"




File photo: Israeli children write messages to Hezbollah on 'soon to be fired' artillery shells.

Photo courtesy of AFP.





by Staff Writers
Tel Aviv, Israel (UPI) Aug 02, 2006
Fighting across the Israeli-Lebanese border escalated with a vengeance by mid-week, as more soldiers battled Hezbollah and the Lebanese militiamen set a new record in the number and depth of their rocket attacks on Israel. The Israel air force, which had restricted its strikes for 48 hours after Sunday's bombing of a house in Qana, resumed full-scale operations and launched with some 400 sorties, according to its Brig. Gen. Yohanan Locker.

The air force attacked scores of buildings it said Hezbollah used for rocket launching and "other terror activity." Israeli aircraft provided fire cover for ground forces, and hit roads, bridges and rocket launching sites.

Locker said that some the launchers were hit about a minute after they were spotted. The heavier rockets leave a trail a smoke once they are launched and that makes it easier to locate the launchers and attack them.

The most dramatic development was an Israeli commando raid in the Baalbeck area, some 35 miles north of the Beirut-Damascus highway.

Commando units raided a hospital the operation's commander, Col. Nitsan Alon, said was used as a Hezbollah headquarters. Others searched several homes while some soldiers with air cover secured the area.

Film footage the army released showed soldiers in full battle gear leaving helicopters, searching drawers and testing a gun they picked up to make sure it is not loaded. They returned to Israel after several hours with five Hezbollah men in whose homes they found arms.

The Israelis apparently hoped to find high-ranking Hezbollah men but did not find them. They nevertheless returned with computers, documents and other data that the intelligence was checking. According to Israel Radio, commandoes have already carried out 15 such raids in which they gathered intelligence.

"It's not the only operation (of this kind) and not the last one," Locker said.

Such an operation, deep behind enemy lines, is expected to frighten Hezbollah by proving elite units can get there, fight Hezbollah, gather intelligence, kidnap people and return safely. It was the first time the military provided filmed footage of such a raid and presented its commander. That suggests the army intended to boost also local moral that was concerned at the slowness if its progress across the border.

Israelis have gotten used to expect quick victories. The most outstanding was in June 1967 when in six days it occupied the Sinai, the West Bank, the Gaza Strip , the Golan Heights and captured the Arab east Jerusalem. This time, three weeks after the fighting began, its ground troops were still fighting in a few villages and a town close to the border.

This fighting, which began with dispatching Special Forces to Maroun e-Ras and then to Bint Jbail, has now spread to some 20 villages. Regular infantry, paratroop and tank brigades were beefed up with a reserve brigade and an estimated 10,000 soldiers are now across the border.

Part of their task is to destroy all Hezbollah border posts that were sometimes built right on the border, and to create a one to two kilometer deep "Special Security Zone" in which no Hezbollah man would enter.

Housing Minister Meir Sheetrit, who attends the meetings of the inner Political-Security Cabinet as "an observer," referred to that area as a future "fire zone" that the army could control by shooting at those who enter it without having to cross into Lebanon.

Some of the troops, backed by combat engineering units, were deeper inside southern Lebanon to create what military Chief of General Staff Lt. Gen. Dani Halutz called "reshaping the line," seizing controlling positions deep in the area, and trying to hit Hezbollah guerrillas. They were trying to push Katyusha rockets launchers away from the border area.

Israel has had difficulties stopping the smaller short-range rockets that are more difficult to track and of which Hezbollah has thousands.

Controlling Lebanese territory could strengthen Israel's hands when the diplomatic political process gathers steam. It wants Hezbollah out of the area replaced by a powerful, determined a multinational force that would chaperon the Lebanese army. With Lebanese territory under its control Israel will be more than an outside interested party.

In the meantime, however, it is paying a heavy price for that. More than 2,000 rockets have hit Israel during the past three weeks killing 52 Israelis and paralyzing part of its economy. Some two million people live in northern Israel. Many have left their homes to stay with relatives, friends, and hotels south of Haifa. Some Israelis opened their doors to strangers from the north. Others remained in shelters and the low casualty rate is partly a result of the fact so many rockets hit houses whose occupants are away.

Wednesday Hezbollah set a new record having fired 210 rockets by 7.15 p.m., police said. The average is about 100 attacks a day.

These rockets sometimes need about a minute to reach their targets and Israelis have learnt to wait for a while in a safe place and then leave. However Wednesday sirens kept wailing in quick succession and radio broadcast alerts every few minutes.

One of the rockets flew across northern Israel and crashed between two Palestinian villages in the northern West Bank.

Haifa has been spared in the last few days possibly because of a Hezbollah attempt to create new understandings. A Hezbollah official threatened to bomb it if Beirut is hit and Halutz said Israel would "reconsider" attacks deep in Lebanon "especially in the Beirut area."

Meanwhile diplomats at the United Nations headquarters in New York and in other capitals are trying to work out a cease-fire and dispatch a multinational force to ensure quiet and help the Lebanese government assert its sovereignty over the entire country including southern Lebanon. That's the goal of U.N. Security Council Resolution 1559.

The multinational force's scope, mandate and composition are among the elements being discussed. Israel wants it to be an effective combat force of 10,000 to 20,000 soldiers from countries that would not let guerrillas push them around. It would like to see French, British and Italian troops there.

Australian soldiers won a good reputation in East Timor and Turkey is a strong Middle Eastern country that deters Syria, Hezbollah's backer. There has been talk of including Egyptian and Jordanian soldiers -- two countries that are at peace with Israel, oppose Hezbollah, and their presence would give Arab legitimacy to such a force.

However many issues must be resolved before the soldiers arrive. No country is likely to agree to contribute troops if Lebanon opposes their participation, or for that matter if a powerful Hezbollah says no. Hezbollah does not want a strong foreign force that would restrict it.

Olmert seems concerned that if the Israeli army withdraws before an effective force takes over, Hezbollah will move in.

"If there is a vacuum, Hezbollah will move into the vacuum and we will move away from 1559." the Foreign Ministry's spokesman Mark Regev said.

The chances a foreign force would then fight to get Hezbollah out seem slim. That seems to be the reason why Olmert seeks to maintain an Israeli presence in the area until the foreign troops arrive.

Source: United Press International