[strider3700]

$this->bbcode_second_pass_quote('Pixie', '
')
No, it means oil will get imported through some other route, which will raise the price, worldwide.

[dhfenton]

I've been following the posts on this article, and quite frankly, I can't believe how quickly you guys have tried to play a fairly minor incident into an oil supply disaster. Did any of you really read the article. You had one pipeline damaged, and three still intact. Of the three shut down temporarily, two went back online very quickly, and the third is probably back on line already too. And 1/9 of the US supply was a figure that applied only for a few hours, and you guys are trying to play in as a major disruption. 1/9 annually would be a big deal. 1/9 divided by 365 (one days supply) is about 3/10 of a percent. That's not a major disruption, that's blip on the radar. And, considering that it will be made up as oil is re-routed through the three remaining pipelines, the real annual effect is zero percent for all intents and purposes.

I joined this forum a few years back, and at first I thought the posts where very rational; but lately, I find that the doomers are getting very impatient and tend to jump on any little incident as proof of the end. The more irrational rants about oil supply problems I hear, the less credibility I think this forum has. Maybe its time to reel it in a bit, and really analyze the big picture before we start speaking of the end times. It would certainly lend more credibility to the Peak Oil argument.

[Chaparral]

The price action is unreal. Jan crude was down a whole 5% from high to low yesterday, reversed within 12 hours and now its back below 91.00. This market is bordering on the untradeable.

[dissimulo]

Looks like the big line will be restarted shortly, leaving only line 3 down.

http://biz.yahoo.com/iw/071129/0334025.html

We can now confirm that Enbridge Energy Partners' Line 2, shipping light crude, was restarted at 3:30 a.m. CST and Line 1, shipping light crude and natural gas liquids, was restarted at 4:15 a.m. CST. Line 4, a heavy crude line, remains shut down but is expected to return to service later this morning as it has now been confirmed that it was not damaged as a result of the incident. Line 3, a heavy crude line, which was directly involved in the incident, remains shut down. Based on a preliminary estimate of the repair time it is expected that it may require two to three days to return Line 3 to service.

http://biz.yahoo.com/iw/071129/0334025.html

[TheDude]

$this->bbcode_second_pass_quote('Pixie', 'N')o, it means oil will get imported through some other route, which will raise the price, worldwide.

[EnemyCombatant]

$this->bbcode_second_pass_quote('KevO', 'o')n the BBC
$this->bbcode_second_pass_quote('', 'P')ipelines from Canada carry about 1.9 million barrels of oil per day.

The closure has halted about 20% of US oil imports and US crude prices rose $1.65 to $92.27 a barrel.

The incident has reversed some of the recent price falls caused by the smaller than expected drop in US oil stockpiles.

"My initial impression is that (this) will put a halt to the slide in oil prices and put us back on the march towards $100 a barrel," said Mark Pervan, senior commodities analyst at ANZ.

"The timing is pretty bad. We are coming to the strongest demand period for crude with the approach of the northern winter."

Canada is the biggest supplier of foreign crude oil to the US and nearly all of it is delivered along Enbridge's pipelines.

[aflurry]

got to agree with dhfenton... this thread shows the PO board at its most retarded.

in any case if explosions are the only thing that can force usage moderation, since even on PO.com people seem to have found a convenient (though false) argument against conservation, well then bring on the explosions.

[EnemyCombatant]

[quote="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..

quote]

I blame the flouride.

[mgtser]

dhfenton

its not that this is not serious, maybe its not

but traders did not take advantage of the incident
Oil price is in fact down..

remember when an oilpipe caught fire in Nigeria and oil price would go up

this time It Went Down, thats illogical

maybe those doomers are right after all

not at peak oil but a coming recession

with Goldman Sach trying to woo people to sell their gold today plus oil trader reaction to this "Nonsense" incident

a different kind of armageddon might be coming

[TheDude]

dhfenton -

I didn't think this has been unduly alarmist up to now, and this is Current Energy News after all. Some of the early reports suggested the line might down for a number of weeks, or indefinitely - and we don't know if there will be problems with the repair either. Prepare for the worst, you know.

This also will perhaps expose how vulnerable these pipelines are, both from natural degradation and possible human meddling.

[Chaparral]

Another thing to consider is that today ain't over yet. Much of the upward price movement of this last oil rally has occurred within the last few minutes of the trading session, and afterwards in electronic trading. Day after day in Sept and Oct the price would spike up in the AM, fall precariously by around noon to 1PM EST only to shoot insanely upward at around 1:30 + EST. There are a lot of headfakes in the markets. I wouldn't dare short right now but I suspect, that some automated trading programs would.

[DantesPeak]

$this->bbcode_second_pass_quote('dhfenton', ' ') And, considering that it will be made up as oil is re-routed through the three remaining pipelines, the real annual effect is zero percent for all intents and purposes.

[Rabbit]

With all 4 of the lines down there was a 9% drop in incoming oil. After just a few hours, three of the lines were restarted. That restores 3/4 of the drop, leaving a loss of only around 2%. That 2% loss may continue for a month or more but the US is currently sitting on above average holdings of crude oil for this time of year.

[DantesPeak]

$this->bbcode_second_pass_quote('', '[')b]Enbridge: Pipeline Outage May Impact Chicago Area Refineries

DOW JONES NEWSWIRES
November 29, 2007 12:49 p.m.

HOUSTON (Dow Jones)--Enbridge Inc.'s (ENB) shutdown of two Canadian crude pipelines has the potential to affect Chicago area refineries, an official with the company said in a conference call Thursday.

The employee cited refineries owned by Exxon Mobil Corp. (XOM), BP PLC (BP) and Citgo Petroleum Corp, a unit of Petroleos de Venezuela as among those that could be forced to reduce runs in the coming days. The employee could not be identified due to excessive noise on the call.

Enbridge stopped four pipelines totaling 1.5 million barrels a day after the explosion Wednesday, which was caused when an oil mist sprayed into the air near Clearbrook, Minn. and ignited. The company restored two pipelines to service Thursday morning, and intends to restart a 706,000 barrel-a-day pipeline in the next day. The final, 420,000 barrel-a-day line is expected to return to service within three days.

The U.S. imported 1.96 million barrels a day of Canadian crude in September, the most recent month when government figures are available. Most of that oil goes to the Midwest on the pipelines affected by the explosion. Although crude inventories in other parts of the country could cover Midwest supply needs, pipeline capacity may hamper refiners' ability to move crude to their plants.

[Chaparral]

YC-F8 is making new lows as we head toward closing. This is not good for the longs, fundamentals and supply considerations to the contrary. We are looking at an absolute techinical failure from the chart action. There's some nast second by second volatility there. The bulls and bears are in a knock down drag out fight right now.

I wonder, did Goldie Sachs sell off a bunch of their contracts???

[lexicon]

Damn! That's our number one importer. I doubt we'll see a drop at the pump this Christmas.

[yesplease]

Wait... How is this going to increase crude prices again? It'll likely increase gas prices in the mid-west and surrounding regions, since there won't be access to as much crude to refine. Otoh, there will be more crude on the world market since parts of the US will have to cut consumption by ~10% for a certain amount of time, less whatever is held in reserve, so this should bring prices down a bit, although not much in the big picture. RBOB in the states, that should go up in the coming days...

[Pixie]

$this->bbcode_second_pass_quote('dhfenton', 'I')'ve been following the posts on this article, and quite frankly, I can't believe how quickly you guys have tried to play a fairly minor incident into an oil supply disaster. .

[Rabbit]

That's not the way it works. Oil that can't be moved out from the well is essentially taken off the market. That increases the market forces on other suppliers that actually can deliver to the US

$this->bbcode_second_pass_quote('yesplease', 'W')ait... How is this going to increase crude prices again? It'll likely increase gas prices in the mid-west and surrounding regions, since there won't be access to as much crude to refine. Otoh, there will be more crude on the world market since parts of the US will have to cut consumption by ~10% for a certain amount of time, less whatever is held in reserve, so this should bring prices down a bit, although not much in the big picture. RBOB in the states, that should go up in the coming days...

[Pixie]

[quote="Pixie
I'd lay odds the SPR will not be tapped for this. .[/quote]

Ooo! I immediately eat my words regarding the SPR:

http://www.bloomberg.com/apps/news?pid= ... fer=energy