[fluffy]

$this->bbcode_second_pass_quote('pup55', 'T')he frequent viewers of PO.com are well aware that this particular part of the country is the very worst in terms of inventory condition right now.

Supplies of heating oil in this region are already way low. Unleaded is also way below the historical low inventory levels.

There are other pipelines that feed into this area from the gulf coast, so there will be some disruption, but at some point the system will adjust to compensate.

There are a lot of refineries around the Chicago area, plus one up in North Dakota that may take some flak from this.

[dukey]

theres plenty of crude in storage
no need to go crazy

[peripato]

$this->bbcode_second_pass_quote('dukey', 't')heres plenty of crude in storage
no need to go crazy

[pup55]

There are about 63 million barrels of storage in this region (PADDII) as of this week. Refiners in the area consumed 3.1 mbpd last week, so there are about 20 days of crude oil in storage.

According to this report:

$this->bbcode_second_pass_quote('', 'S')empra Metals analyst John Kemp said while 600,000 bpd might be restored in a day or so from the pipeline, 1.8 mln bdp, or 18 pct of daily US imports, are now unavailable indefinitely. He said there is no way to replace the import capacity and the market was awaiting an announcement from the US government as to whether it will release oil from the Strategic Petroleum Reserve (SPR).

[wisconsin_cur]

$this->bbcode_second_pass_quote('pup55', '
')

We will have to keep alert on this, but I do not think this is oilmageddon.

[KevO]

$this->bbcode_second_pass_quote('pup55', '
')We will have to keep alert on this, but I do not think this is oilmageddon.

[roccman]

A warm up for when Cantarell goes dry.

Simmons was saying a 8% annual decline rate...most others 3-5%...

I am sticking by my original prediction...50% (minimum by 2010)...and $800 oil by then as well.

So much for the Little House on the Prarie scenario...

Bone crushing thud is being served up.

[Revi]

Bloomberg isn't freaking out yet. It says that the price is only up $2 now over yesterday. As of 7:30 am it's not taking off yet.

[pedalling_faster]

$this->bbcode_second_pass_quote('wisconsin_cur', 'T')o cause a fire that will burn for days and to knock out production for an undetermined amount of time... sounds like someone intended to do something rather than an accident.

[DantesPeak]

Assuming that SPR oil could be transferred to Cushing, OK, and from there up to the Midwest, that could take two weeks or more for oil to reach the refineries that have been using Canadian oil. The SPR oil is of a different quality, and I'm not an expert or even very informed about what refinery adjustments could be made to handle that SPR oil. I assume it could be done, although it may be costly to those refiners.

The only good thing about this event is that we are past harvest season and also going into a period of lower demand for gasoline. However I am pessimistic that the US will avoid hitting the MOL (minimum operating level) for gasoline in the Midwest - if not sometime this winter then in the Spring.

[TheDude]

Clearbrook MN area on Google Maps. The terminal is the structure on the SE edge of town; the pipeline is easily visible. The fire happened 5km/3 miles SE of town. The remoteness of the location means the workers were far away from the terminal, thus I'd guess this was an accident happening in the course of maintenance, rather than anything sinister.

Still super bad news.



I started a new topic this week on the Minimum Operating Level (MOL), which is the minimum amount of fuel that can be in a pipeline for it to function. Good reading to be had there.

[vision-master]

$this->bbcode_second_pass_quote('KevO', 'B')oys and Girls.
Be you American or European. Get dressed and go fill everything you've got.

.

[frankthetank]

From the Star Tribune. This should get interesting. I wonder how much of a spike we'll have at the pumps? Thank god it wasn't a natural gas pipeline!

Here is one from Duluth Tribune:

[bl00k]

Damn that looks bad.

Oil rises above $93. Hope it goes higher to prove that the oil infrastructure is fragile. Because if this doesn't raise prices above 100, i don't blame the people for not caring about the coming liquid fuel crisis. I'm tired of these cheap-a$$ rises in the oil-price, i want to see some real drama to prove my point once and for all!!!!!!

http://www.321energy.com
http://quote.barchart.com/quote.asp?sym=CLF8

[vision-master]

$this->bbcode_second_pass_quote('', '
')Enbridge Energy Inc.'s 34-inch pipeline carries crude oil from Saskatchewan to the Chicago area, Chapin said. The pipe had leaked a few weeks ago and was being repaired, she said.

"It appears as though one of those fittings may have failed and caused fumes to leak, and it caught fire," Chapin said. She said there wasn't an explosion and described it as a "big fire."

The crude is used to make several kinds of fuel, such as gasoline and home heating oil. An average of 1.5 million barrels of oil passes through the system that includes that pipeline every day, said Larry Springer, a spokesman for Houston-based Enbridge.

That production would account for about 14.4 percent of daily oil imports, but parts of the system were already re-opening on Thursday.

The pipeline that leaked and three others were shut down, Enbridge said. Two of the lines were re-started Thursday morning, Springer said. Another line will be inspected to see if it is safe to come back online, but the line with the leak will likely be out for some time, Springer said.

[mgtser]

oil price is not moving!!

amazing, is the market factoring a coming US recession, that would explain why traders are hesistant to buy

this is amazing

MSM is not pushing this story.. there is news segments about the fire but only in small business columns

An article from FOX was read by only 14 people, yes 14!!! im in astonished!!

i believe a Huge Recession is coming, the fact that they didnt use this incident to their advantage shows that this was really an accident..

omg 20%!!! NO reaction at all..

excerpt;

http://www.foxbusiness.com/markets/indu ... 20_11.html

"The capacity of the lines in question represents around 20% of the crude imported by the United States, so there is understandable market concern over how soon pumping can resume," said Lawrence Poole, an energy analyst at Global Insight in London.

[DantesPeak]

$this->bbcode_second_pass_quote('', '[')b]US to order reduced rates on Enbridge oil pipeline
Thu Nov 29, 2007 10:22am EST

NEW YORK, Nov 29 (Reuters) - The U.S. Department of Transportation will probably order the giant Enbridge pipeline system to run at reduced pressure while an investigation into a deadly blast on the line in Minnesota is conducted.

"I can definitely say the pipeline will operate at a reduced rate of pressure until we can figure out what caused the accident," said Damon Hill, a spokesman for the U.S. Department of Transportation.

Enbridge would likely have to cut the amount of space it makes available to shippers if it was forced to run on lower rates for an extended period of time.

Hill said the accident investigation would take a number of weeks.

Before the accident, Canadian crude oil producers were growing concerned about capacity constraints on the Enbridge system, which is being expanded to handle more crude oil shipments.

[DantesPeak]

$this->bbcode_second_pass_quote('', 'B')ut two of the four lines were restarted Thursday morning, said Larry Springer, a spokesman for Houston-based Enbridge. Another line was being inspected to see if it was safe to bring back up.

"Nothing is going to be restarted until we're absolutely sure it's safe to be operated," Mr. Springer said.

[Pixie]

$this->bbcode_second_pass_quote('idomar', 'D')oes this mean that effectively the PRODUCTION of 2m barrels per day will need to be shut down too for as long as the pipeline is out of action?

[idomar]

Anyone in the area seeing any panic buying or dramatic price increases at petrol stations or have all of the soothing words done their job