!!!!!!!! URGENT INFO REUTERS!!!!!!!!!!! Alert: Millions of Barrels of Spr Oil May Go on Market, May Lower Prices--us Official

original link http://www.boursorama.com/forum/message.phtml?message=552232

Story in French http://www.boursorama.com/infos/detail_actu.phtml?news=62513

-- dc (lafournigue@hotmail.com), January 30, 2000

Answers

Membership required, signup is only in French.(frown)

-- Possible Impact (posim@hotmail.com), January 30, 2000.

FULL TEXT IN FRENCH

Les USA tireraient dans leurs riserves pour faire baisser l'essence (presse) AFP le 30/01/2000 23:45

L'administration Clinton envisage de tirer des millions de barils de brut de la riserve stratigique de pitrole du pays pour les mettre sur le marchi et tenter ainsi de faire baisser les prix de l'essence et du gaz, rapporte l'hebdomadaire Time dans son dernihr numiro ` parantre lundi.

Selon ce projet, qui pourrait prochainement recevoir le feu vert du prisident Bill Clinton,les compagnies pitrolihres pourraient puiser du pitrole dans la riserve stratigique.

Elles rendraient ce pitrole dans les douze mois mais avec des barils en plus en guise de paiement, explique l'hebdomadaire, citant des sources gouvernementales. Le gouvernement fidiral va donc lancer un appel d'offre ` cet effet, ajoute Time.

Le baril a plus que doubli en un an passant de 10 dollars ` la fin 1998 ` plus de 25 dollars aujourd'hui, ce qui a entranni une hausse de prhs de 50% du prix de l'essence ` la pompe. Le fioule domestique et le gaz naturel ont igalement fortement augmenti.

Si cette mesure riussit ` faire baisser les prix de l'inergie, le vice-prisident Al Gore pourrait en binificier dans sa campagne pour les ilections prisidentielles. En effet les autres candidats, dimocrates comme ripublicains, l'ont attaqui sur la flambie des co{ts de l'inergie, qui affectent surtout la classe moyenne et les Amiricains les moins favorisis mais aussi l'industrie des transports.

Mais pour maintenir durablement des prix de l'inergie plus bas, l'administration Clinton devra aussi convaincre les pays producteurs de l'OPEP (Organisation des pays exportateurs de pitrole) de relbcher leurs restrictions ` la production.

Les Etats-Unis ont d{ importer en 1998 environ 40% du pitrole qu'ils ont consommi contre 46% en 1973, au moment du premier choc pitrolier, selon les stratistiques du dipartement de l'Energie.

Le secritaire amiricain ` l'Energie, Bill Richardson, devait rencontrer le ministre mexicain du pitrole en marge du Forum iconomique mondial de Davos en Suisse qui riunit cette semaine l'ilite de l'iconomie mondiale, affirme Time.

"L'OPEP est en effet partagie sur l'intirjt de maintenir les cours ` un tel niveau. Les modiris, comme le Mexique et l'Arabie Saoudite, savent qu'` terme, la hausse du cours va riduire la demande, et encourager les achats en dehors de leur organisation", a ricemment expliqui ` l'AFP, George Beranek, un analyste de Petroleum Finance, ` Washington.

En outre, les experts estiment que la "nouvelle iconomie" amiricaine n'est pas aussi vulnirable ` la hausse du brut que celle du choc de 1973, avec le blocus de l'OPEP, et celui de 1979, avec l'arrjt des livraisons iraniennes.

"Les prix du pitrole ne sont plus aussi importants dans cette iconomie des technologies de l'information", a pour sa part relevi David Jones, le principal iconomiste de la firme new-yorkaise d'investissement, Aubrey G. Lanston.

Mais si le haut niveau actuel des co{ts de l'inergie persiste, il finira par se ripercuter sur d'autres secteurs de l'iconomie, entrannant une plus grande inflation, s'accordent ` privoir la majoriti des conjoncturistes.

La riserve stratigique de pitrole amiricaine contient 580 millions de barils de brut.

-- dc (lafournigue@hotmail.com), January 30, 2000.

Mabey they are now forseeing some major supply problems????

-- Earl (earl.shuholm@worldnet.att.net), January 30, 2000.

ENGLISH TEXT

http://www.marketwatch.newsalert.com/bin/story?StoryId=Cojpfub8ZtJmWmt K0mZa5&FQ=v%25reuter&Sponsor=REUTERS_NEWS&Title=Headlines%20for%3A%20v %25reuter%0A

FOCUS-U.S. Energy Dept seeks to swap stockpiled oil

Reuters Story - January 30, 2000 19:27

By Tom Doggett

WASHINGTON, Jan 30 (Reuters) - The U.S. Energy Department has proposed putting millions of barrels of crude oil from the national Strategic Petroleum Reserve (SPR) on the market through oil swaps with energy companies, a government official said on Sunday.

While the long-term goal of the plan is to eventually put more oil back into the reserve, a short-term side effect of the additional supplies from the proposed swap could be to lower crude oil prices, which have recently hit nine-year highs, said the official, who asked not to be named.

Under the department's plan, oil firms would submit bids to take oil from the reserve and then sell it in the market. Instead of paying the government cash for the reserve oil, the companies would replace the crude at a future date with more product.

The plan is being reviewed by the White House, and a decision on the proposal may come in as soon as two weeks, the official said.

Under the plan, a company could "pay" for one barrel of high-priced swapped oil by replacing it with two or three barrels in the future when oil might cost less, explained the official.

"In order for us to exchange oil and get more in return, we need to take advantage of current market conditions," said the official, referring to high energy prices that would make selling swapped reserve oil so profitable for firms. "We have to be able to respond quickly."

The winning bids would be from those firms that could quickly replace swapped oil with the most new oil. The department would want any swapped oil replaced within 12 months, the official said.

The emergency reserve was created by Congress in the mid-1970s following the Arab oil embargo. The stockpile holds 567 million barrels of oil in underground salt caverns in Texas and Louisiana.

Details of the department's proposal were first reported in the new issue of Time magazine, which hits newsstands on Monday.

Energy Secretary Bill Richardson would not need congressional approval to swap the oil, because he already has the authority to manage the reserve and fill it with oil "through either exchanges or purchases," the official said.

The official said the department did not spell out in its proposal how much oil it expects, or hopes, would be swapped, because it would depend on the bids that were received.

However, the official said that oil could be withdrawn from the reserve at a maximum rate of four million barrels per day.

The U.S. consumed last month an average 19.8 million barrels a day of crude oil and refined petroleum products, such as gasoline and heating oil, according to department data.

Despite pressure from some members of Congress and state governors, Richardson has insisted that he would not sell oil from the reserve to lower crude prices.

The department's plan would allow him to continue following that policy, because he would eventually fill the reserve with more oil to handle any future supply disruptions, the official said.

Northeast lawmakers, whose constituents use most of the nation's home heating oil, have urged that reserve oil be sold to push down heating oil prices that have skyrocketed due mostly to production cuts made by the Organization of Petroleum Exporting Countries (OPEC).

Richardson has begun talking with OPEC members and other major U.S. oil suppliers about current production levels. He travels next month to Saudi Arabia, the biggest U.S. oil supplier and most influential OPEC member.

In a separate move, Richardson announced last Wednesday that he would postpone the delivery of up to five million barrels oil into the reserve, allowing energy firms to sell that crude in the open market.

(Washington Energy Desk, 202-898-8320)

-- dc (lafournigue@hotmail.com), January 30, 2000.

ENGLISH TEXT

http://www.marketwatch.newsalert.com/bin/story?StoryId=Cojpfub8ZtJmWmt K0mZa5&FQ=v%25reuter&Sponsor=REUTERS_NEWS&Title=Headlines%20for%3A%20v %25reuter%0A

FOCUS-U.S. Energy Dept seeks to swap stockpiled oil

Reuters Story - January 30, 2000 19:27

By Tom Doggett

WASHINGTON, Jan 30 (Reuters) - The U.S. Energy Department has proposed putting millions of barrels of crude oil from the national Strategic Petroleum Reserve (SPR) on the market through oil swaps with energy companies, a government official said on Sunday.

While the long-term goal of the plan is to eventually put more oil back into the reserve, a short-term side effect of the additional supplies from the proposed swap could be to lower crude oil prices, which have recently hit nine-year highs, said the official, who asked not to be named.

Under the department's plan, oil firms would submit bids to take oil from the reserve and then sell it in the market. Instead of paying the government cash for the reserve oil, the companies would replace the crude at a future date with more product.

The plan is being reviewed by the White House, and a decision on the proposal may come in as soon as two weeks, the official said.

Under the plan, a company could "pay" for one barrel of high-priced swapped oil by replacing it with two or three barrels in the future when oil might cost less, explained the official.

"In order for us to exchange oil and get more in return, we need to take advantage of current market conditions," said the official, referring to high energy prices that would make selling swapped reserve oil so profitable for firms. "We have to be able to respond quickly."

The winning bids would be from those firms that could quickly replace swapped oil with the most new oil. The department would want any swapped oil replaced within 12 months, the official said.

The emergency reserve was created by Congress in the mid-1970s following the Arab oil embargo. The stockpile holds 567 million barrels of oil in underground salt caverns in Texas and Louisiana.

Details of the department's proposal were first reported in the new issue of Time magazine, which hits newsstands on Monday.

Energy Secretary Bill Richardson would not need congressional approval to swap the oil, because he already has the authority to manage the reserve and fill it with oil "through either exchanges or purchases," the official said.

The official said the department did not spell out in its proposal how much oil it expects, or hopes, would be swapped, because it would depend on the bids that were received.

However, the official said that oil could be withdrawn from the reserve at a maximum rate of four million barrels per day.

The U.S. consumed last month an average 19.8 million barrels a day of crude oil and refined petroleum products, such as gasoline and heating oil, according to department data.

Despite pressure from some members of Congress and state governors, Richardson has insisted that he would not sell oil from the reserve to lower crude prices.

The department's plan would allow him to continue following that policy, because he would eventually fill the reserve with more oil to handle any future supply disruptions, the official said.

Northeast lawmakers, whose constituents use most of the nation's home heating oil, have urged that reserve oil be sold to push down heating oil prices that have skyrocketed due mostly to production cuts made by the Organization of Petroleum Exporting Countries (OPEC).

Richardson has begun talking with OPEC members and other major U.S. oil suppliers about current production levels. He travels next month to Saudi Arabia, the biggest U.S. oil supplier and most influential OPEC member.

In a separate move, Richardson announced last Wednesday that he would postpone the delivery of up to five million barrels oil into the reserve, allowing energy firms to sell that crude in the open market.

(Washington Energy Desk, 202-898-8320)

-- dc (lafournigue@hotmail.com), January 30, 2000.

Opps, sorry dc - didn't see the "english version" that you posted later. Grabbed a copy from Link

-- Possible Impact (posim@hotmail.com), January 30, 2000.

Sounds like the federal government just got into the oil futures game. They expect oil companies to gamble that the price of crude will fall sometime this year. Besides, the quality of crude in the SPR is lower than that of the crude that oil companies will be paying back.. Suppose they don`t get any takers? What next? Gordo Gecko, What is your perspective on this? Also sounds like the government just got very worried about supplies. Mabey those rumors about problems with the Saudies were true?

-- Earl (earl.shuholm@worldnet.att.net), January 30, 2000.

G D effing IDIOTS!!11!!!!!!!

DAMN WHAT ARE THEY THINKING!?!??!?!??!?!

CRAP!

Chuck

STRONG POST TO FOLLOW!

-- Chuck, a night driver (rienzoo@en.com), January 30, 2000.

Earl,
I agree, this is so sad. Right up there with trading your birthright for a bowl of porridge. One man (unelected) has the life and death keys of the US economy, even the ability to do something Sooo stupid that we are pushed into a war. (If our SPR is used up and OPEC tries to pull rank the only resort is immediate physical attack, seizing oil tankers, terminals, producing fields, etc...) Next week, when the street smells "long term shortage" the traders will go NUTS and the supply will be even further disrupted.

-- Possible Impact (posim@hotmail.com), January 30, 2000.

Chuck,

Do your comments reflect an opinion (A) that the Feds can't realize that the problem isn't getting oil from the wells, it's getting it thru the refineries? Or (B) do you see the Feds (1) ruining your oil futures investments or (2) blowing a future national oil requirement by giving up SPR oil this early into an oil crisis, instead of waiting long enough to get info on the fullest, true scope of the oil problem.

If it's A or B2, I whole-heartedly agree. If it's B1, you've been listening to Andy too much.

WW

-- Wildweasel (vtmldm@epix.net), January 30, 2000.

I WISH I had oil futures. No money.

I think these people (term used loosely) are either A trying to cover a REAL problem for another 3 or 4 weeks (when the SPR oil would come on line as it were), or B) simply caving to the liberal "OOOO IT HURTS when I fill my car!!" people.

YUP A or B2

Chuck

-- Chuck, a night driver (rienzoo@en.com), January 30, 2000.