KABOOM!!!!

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Posted on 26th August 2012 by Administrator in Economy |Politics |Social Issues

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Another fake excuse for the Obamanistas to release sour crude, that can be processed at only a few refineries in the U.S., onto the market in a pathetic attempt to win the election. I predict a surge of oil over $100 a barrel, then the dramatic “surprise” announcement from Obama, a drop in oil to $90 a barrel, and by election it will be back over $100 a barrel. So it goes. 

Refinery explosion kills 39 in Venezuela

An explosion at a oil refinery in Venezuela on Saturday caused a huge fire, killed at least 39 people, and injured dozens.

Temp Headline Image
Fire rises over the Amuay oil refinery near Punto Fijo, Venezuela, Saturday. A huge explosion rocked Venezuela’s biggest oil refinery and unleashed a ferocious fire Saturday, killing 39 people and injuring dozens in the deadliest disaster in memory for the country’s key oil industry.
(Diario El Amanecer/AP)


By Jorge Rueda, Associated Press
posted August 26, 2012 at 10:27 am EDT

Punto Fijo, VenezuelaA huge explosion rocked Venezuela‘s biggest oil refinery and unleashed a ferocious fire on Saturday, killing at least 39 people and injuring more than 80 others in one of the deadliest disasters ever to hit the country’s key oil industry.

Balls of fire rose over the Amuay refinery, among the largest in the world, in video posted on the Internet by people who were nearby at the time. Government officials pledged to restart the refinery within two days and said the country has plenty of fuel supplies on hand to meet domestic needs as well as its export commitments.

The explosion shattered walls of nearby shops, ripped out windows from homes and left the surrounding streets covered with rubble and twisted scraps of metal.

President Hugo Chavez declared three days of mourning and ordered an investigation to determine the cause of the explosion. “This affects all of us,” Chavez said by phone on state television. “It’s very sad, very painful.”

Vice President Elias Jaua, who traveled to the area in western Venezuela, said on state television late Saturday that at least 39 people were killed by the explosion, up from the earlier death toll of 26. He said that the dead included 18 National Guard troops and that six of the bodies had not yet been identified. Other officials said earlier that the dead included a 10-year-old boy.

In a neighborhood next to the refinery, shopkeeper Yolimar Romero said she was at her computer when a shock wave swept over the area shortly after 1 a.m.

“At that instant, the whole house shook as if it were an earthquake,” she said. “The windows went flying off with their frames and everything.”

Electricity was knocked out, leaving Romero in the dark and her house filled with smoke. She found a flashlight and started looking for her husband and three children.

Outside on the street, the family saw scattered hunks of brick walls and ruins of a National Guard post and about 20 other homes. Bodies were being pulled from buildings down the street.

At least 86 people were injured, nine of them seriously, Health Minister Eugenia Sader said at a hospital where the wounded were taken. She said 77 people suffered light injuries and were released.

Flames reaching nearly 100 feet into the night air still crackled almost 20 hours after the explosion occurred, giving off searing heat felt by the residents of the neighborhood located approximately 1,000 feet from the refinery.

“This does not seem to be getting any better, I see and feel more and more flames,” said Francisco Rojas, a 29-year-old taxi driver from the neighborhood as he loaded some of his belongings into a truck.

“I have a young daughter and my wife, and we don’t want to take the risk of dying here,” Rojas added.

Officials said firefighters had largely controlled the fire at the refinery on the Paraguana Peninsula, where flames were still visible on Saturday night after billowing dark smoke all day.

The blast occurred about 1:15 a.m. when a natural gas leak created a cloud that ignited, Oil Minister Rafael Ramirez said.

“That gas generated a cloud that later exploded and has caused fires in at least two tanks of the refinery and surrounding areas,” Ramirez said.

Images shortly after the explosion showed the flames casting an orange glow against the night sky, and injured survivors on a stretcher and in a wheelchair. The bloodied bodies of victims were loaded onto pickup trucks.

Ramirez said a panel of investigators was being formed to determine the cause of the gas leak. A prosecutor was appointed to lead the investigation and troops were deployed to the area.

While the cause of the disaster remains unclear, some oil workers and critics of Chavez’s government have recently pointed to increasing numbers of smaller accidents and spills as an indication of problems within the state-run company.

“We warned that something was going to happen, a catastrophic event,” said Ivan Freites, secretary general of a 1,200-member union of oil and natural gas industry workers in Falcon state where the refinery is located. He spoke in a telephone interview from an area near the refinery, where he could see the flames raging in the distance.

The refinery complex’s general manager, Jesus Luongo, denied that a lack of maintenance was to blame, saying in the past three years more than $6 billion has been invested in maintaining the country’s refineries.

Ramirez said the explosion hit an area of storage tanks, damaging nine tanks.

“All of the events happened very quickly,” Ramirez said. “When we got here in the middle of the night, at 3 or 3:30 in the morning, the fire was at its peak.”

The oil minister said that supplies of fuel had been cut off to part of the refinery and that firefighters were using foam to extinguish the flames in one of the remaining tanks.

“This regrettable and sad event is controlled, is under control,” Ramirez said on television, while plumes of smoke continued to billow.

Amuay is part of the Paraguana Refinery Complex, which also includes the adjacent Cardon refinery. Together, the two refineries process about 900,000 barrels of crude per day and 200,000 barrels of gasoline. Venezuela is a major supplier of oil to the U.S. and a member of the Organization of Petroleum Exporting Countries.

Ramirez said the state oil company Petroleos de Venezuela SA should be able to “restart operations in a maximum of two days.”

“We want to tell the country that we have sufficient inventories of fuel. We have 10 days of inventory of fuel,” Ramirez said. He said the country’s other refineries were operating at full capacity and would be able to “deal with any situation in our domestic market.”

An official of the state oil company, known as PDVSA, said the country also has enough supplies on hand to guarantee its international supply commitments. The official spoke on condition of anonymity because he wasn’t authorized to speak publicly about the matter.

In terms of international oil markets, the disaster is not likely to cause much of a ripple, said Jason Schenker, an energy analyst and president of Austin,

Texas-based Prestige Economics LLC. Noting that other refinery accidents and shutdowns regularly occur around the world, he said: “There’s likely to be relatively limited impact on global crude or product pricing.”

“The real tragedy,” he said, “is that these events continue to happen, not just in Venezuela but everywhere. It is a dangerous business.”

Gustavo Coronel, an energy consultant and former PDVSA executive, called the tragedy “probably the worst one the oil industry has had in many years.”

“Accidents happen, of course, although the problem with PDVSA is the inordinate amount of accidents that have taken place during the last years,” Coronel said. Considering the overall record, “we are not talking about bad luck but about lack of maintenance and inept management,” he said.

The labor leader Freites, who has worked at the refinery for 29 years, said workers had repeatedly alerted state oil company officials to problems that they feared could lead to an accident. “We’ve been complaining about problems and risks, including fires, broken pipes and a lack of spare parts,” Freites said.

One opposition group comprised of former PDVSA employees, Gente del Petroleo, or Oil People, said it could not yet pass judgment on the cause of the explosion. But it but noted there had been ample concerns about lack of maintenance and poor management.

The group said in a statement that since 2003, 79 other serious accidents have been reported at the Paraguana Refinery Complex, collectively killing a total of 19 workers and injuring 67 others.

Opposition leader Henrique Capriles, who is challenging Chavez in the country’s Oct. 7 presidential election, expressed condolences to the victims and their families.

“We Venezuelans are one, and we grow in the face of this type of situations,” Capriles said.

IRAN CUTS OFF OIL TO BRITAIN & FRANCE

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Posted on 19th February 2012 by Administrator in Economy |Politics |Social Issues

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This should do wonders for the European Depression. Keep waiting for lower gas prices. Obama’s next public relations ploy will be to withdrawl more oil from the Strategic Reserve. We know how well that worked last time. Oil was $80 a barrel and now it is $102 a barrel. The best part of this farce will be the revelation that Saudi Arabia is full of shit and has absolutely NO SPARE CAPACITY. They were unable to ramp up production for the Libyan oil shortfall and they will be unable to make up for the Iranian oil in Europe. Higher prices bitchez!!!!



Iran Stops Oil Sales To British, French Companies

 
Tyler Durden's picture
Submitted by Tyler Durden on 02/19/2012 10:26 -0500
 

The geopolitical game theory escalates once again, as Iran, which four days ago halted exports to peripheral European countries took it up a notch, and has as of this morning halted sales to British and French companies. Reuters reports: “Iran has stopped selling crude to British and French companies, the oil ministry said on Sunday, in a retaliatory measure against fresh EU sanctions on the Islamic state’s lifeblood, oil. “Exporting crude to British and French companies has been stopped … we will sell our oil to new customers,” spokesman Alireza Nikzad was quoted as saying by the ministry of petroleum website.” Here is the actual statement from MOP.ir. As a reminder, on January 27 we said how Iran was about to “Turn Embargo Tables: To Pass Law Halting All Crude Exports To Europe.” And so it has – now, the relentless media campaign about China isolating Iran in response to American demands has to be respun: recall that in early February Reuters told us that “China will halve its crude oil imports from Iran in March compared to average monthly purchases a year ago, as a dispute over payments and prices stretches into a third month, oil industry sources involved in the deals said on Monday.” Apparently that may not have been the case, as there is no way Iran would have escalated as far as it has unless it had replacement buyers of one third of its crude. Incidentally, this is just as we predicted in “A Very Different Take On The “Iran Barters Gold For Food” Story.” The end result of this senseless gambit by the west: Europe has less oil, the Saudi fable that it has endless excess suplies is about the be seriously tested, China has just expanded a key crude supply route, and Russia is grinning through it all as Brent prices are about to spike. Iran didn’t invent chess for nothing.

This is what we cautioned in early February:

we humbly submit that instead of taking the Reuters article at face value, and one may certainly do that, what may instead be happening as Iran migrates to a non-dollar based international trade system is the testing of the waters of a non-USD regime, more importantly, one quietly encourage by  China, who is a very complicit participant in the transition to a world in which the US Dollar suddenly finds itself irrelevant. Whether replaced by gold, or a currency backed by a basket of hard assets (the CNY?) we don’t know. However, we know one thing: China needs Iran’s crude, which at last check was among the world’s top 5 oil producers, and had the world’s third largest proven oil reserves after Saudi Arabia and Canada, and despite media reports that it is actively looking for crude import alternatives, we would allege that this is nothing but purposeful disinformation. After all why would China comply with US demands for an enhanced Iranian embargo? The whole point of China’s foreign policy to date has been to counteract US pushes and provocations abroad without fail. Why should it make an exception now. Frankly, we don’t buy it.

Sure enough, ten days later neither does the world.

More from Reuters:

 

Industry sources told Reuters on Feb. 16 that Iran’s top oil buyers in Europe were making substantial cuts in supply months in advance of European Union sanctions, reducing flows to the continent in March by more than a third – or over 300,000 barrels daily.

 

France’s Total has already stopped buying Iran’s crude, which is subject to fresh EU embargoes. Market sources said Royal Dutch Shell has scaled back sharply.

 

Among European nations, debt-ridden Greece is most exposed to Iranian oil disruption.

 

Motor Oil Hellas of Greece was thought to have cut out Iranian crude altogether and compatriot Hellenic Petroleum along with Spain’s Cepsa and Repsol were curbing imports from Iran.

As we tweeted a few days ago, “Greece may be broke buit at least it has no oil.”Win-win. Er… wait.

Needless to say, it is now time for Saudi Arabia to step up or shut up. And if many are correct, stripping away all the posturing about Saudi’s near infinite excess supplies, may reveal a very ugly picture. And a $10 spike in brent in short order.

Saudi Arabia says it is prepared to supply extra oil either by topping up existing term contracts or by making rare spot market sales. Iran has criticised Riyadh for the offer.

Finally, here is why it is quite obvious that China has stepped up:

Iran said the cut will have no impact on its crude sales, warning that any sanctions on its oil will raise international crude prices.

 

Brent crude oil prices were up $1 a barrel to $118.35 shortly after Iran’s state media announced last week that Tehran had cut oil exports to six European states. The report was denied shortly afterwards by Iranian officials.

 

“We have our own customers … The replacements for these companies have been considered by Iran,” Nikzad said.

Surely, when it comes to shooting itself in the foot, Europe truly has no equal.

I’VE GOT A BAD CASE OF GAS

18 comments

Posted on 12th February 2012 by Administrator in Economy |Politics |Social Issues

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Remember when your beloved President Obama took oil out of the Strategic Reserve to drive the price of oil down? That happened on June 23, 2011. Oil was trading at $80. Today it is trading at $99. Well done Mr. President. Despite being in the the midst of the lowest demand portion of the year, after three years of decreased oil usage, the price of a gallon of gasoline has gone up 8% in the last 50 days. It is up 11% over this time last year. See what happened to the price last year between February and May. A similar spike this year would put a final nail in the coffin of this false recovery.

But if you live in one of the two biggest markets in the country – Los Angeles & New York – the price of a gallon will be over $4.00 within a few weeks. Prices have already risen 10% in the last two months. These prices are already putting tremendous strain on the middle and lower classes’ budgets. A conflict with Iran or another world crisis would finish off the American consumer.