So, they are filling the strategic petroleum reserve.

With it, they can provide oil at 3/8 of current utilization.

Earlier this year there were discussions of ssomeone having seen the ration coupons.

Now this report says it starts dec 21. http://www.freerepublic.com/forum/a3810a89a2b17.htm

(Actually seems like a good idea to me. Too much of the oil industry is going to "fix on failure" so there has to be shortages. I just wish they would be open and honest with the American public.)

-- ng (cantprovideemail@none.com), October 22, 1999

Answers

Market Alert! Market Alert!

Crude futures just gained 85 cents/ bl in today's session. Gasoline and heating oil futures up nearly 2 cents a gallon. The scramble for barrels is shifting into high gear.

-- Downstreamer (downstream@bigfoot.com), October 22, 1999.

A previously reliable source who asks for anonimity for fear of reprisal has stated that, on December 21st, 1999, the governement will begin its grab for power by rationing gasoline and BANNING civilian travel on the Interstate Highway System.

This source has been reliable in the past but I am having a hard time with this one being accurate....

Still, store up gas just in case.....

Has anyone else heard this one?

No Christmas travel? Return all the gifts?

-- doesn't (make@much.sense), October 22, 1999.

Banning civilian travel on the Interstates would be impossible.

-- bugout (bugoutboy@runlikehell.gone), October 22, 1999.

Downstreamer,

What are the rumors around the market for the increase?

-- nothere nothere (notherethere@hotmail.com), October 22, 1999.

The reasons for today's rally aren't that substantial but that's what a bull market is all about. It doesn't take much to spark an advance. Everyone knows its gonna be tight around year end just based on OPEC cutbacks and supply and demand. This morning a North Sea Phillips field by the name of Ekofist shut down about 300,000 barrels/ day due to a gas leak. It should be down about a week. The Mexicans and Kuwaitis also came out and publically endorsed retaining the current cutback agreement and maybe extending it past its March expiration.

Oil futures and spot market traders ARE NOT thinking or talking much y2k. There's talk about stockpiling in advance but like most industries, those 'in the know'ARE NOT concerned about refinery operations, crude production, power outages, tankers, ports or anything else. They're definately buying the spin hook. line and sinker. I'm a little surprised that they, and the markets are so complacent, especially about foreign supply.

That's one reason I think the oil sector is one of the better pure y2k plays. We've already had the Fall price pullback (it dropped about $4 bl the week b4 last) and now its really ripe. Watching gold and the stock market this week, its obvious those aren't currently y2k doomer plays....

-- Downstreamer (downstream@bigfoot.com), October 22, 1999.

I have to echo Downstreamers comments. I am in the market every day and I have seen zero evidence that the industry is paying attention. Plenty of lip service, but no real believers. This is why I maintain that a minimum of 10% of global production will go boink for a minimum of one month at the rollover. That's 7.4 million barrels per day for 30 days or roughly 210 million bbls. Try that for a price spike. Opec will have to change their shorts (one way or the other depending on how well they've done their work)

-- Gordon (g_gecko_69@hotmail.com), October 22, 1999.