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<blockquote data-quote="greybeard" data-source="post: 1220775" data-attributes="member: 18945"><p>Oil, especially undiscovered and undeveloped oil is not usable oil. It's like having a bunch of heifers, no bull or AI but claiming you have a bunch of breds or pairs. Until a field is proven, it doesn't actually exist as an inventory of available oil. </p><p>You're correct tho, I very much remember the '79 oil crisis, but I remember it differently than you do. I had been working for a drilling company for about a year and 1/2. There was no shortage of gasoline in 1979--at least not at first, but there was a percieved fear that OPEC would completely cut off oil and there soon would be a gasoline shortage. This led to panic buying--people kept their tanks completely tanked up, pulling into a station anytime their tanks dropped down below 3/4 tank. That is what caused the long lines, and the real shortage. There was still plenty of crude oil, and the refiners were running as close to 100% capacity as possible, but couldn't keep up with the panic buying. By spring, there really was a gas shortage, but a crude oil glut, just because of scared sheeple sitting in gas lines trying to fill that last 1/4 tank. </p><p><em>As the average vehicle of the time consumed between two to three liters (about 0.5-0.8 gallons) of gasoline (petrol) an hour while idling, it was estimated that Americans wasted up to 150,000 barrels (24,000 m3) of oil per day idling their engines in the lines at gas stations.[10]</em></p><p></p><p>You won't believe any of this of course, because you're mind is made up, but De-regulation didn't cause the 79 crisis--it was a result OF it. OPEC used to arbitrarily (for any reason or no reason) set both the price of oil-and how much they allowed thru the faucets. US oil was regulated in several different ways and it wasn't all regulated the same. Old oil, was priced lower than new oil--oil oil being oil that was discovered prior to 1972. New oil was priced higher, including the oil the refiners bought from OPEC. There was also something called 'small refinery bias" which meant smaller independent refiners paid less for their oil that the big guys did. In addition, US producers, thru the allocation program, were restricted in how much crude they were allowed to produce from a lot of the wells and fields. </p><p></p><p>The '79 crisis came as a result of OPEC (specifically, Saudi Arabia's) announcement in late January '79, that they were drastically cutting production and placing a cap on production at 9 million bbls/day. Immediately spot oil prices increased worldwide 36%. </p><p>January: First emergency Crude Oil Buy-Sell Program allocations.</p><p>January 16: Shah leaves Iran on vacation, never to return. Bakhtiar government established by the Shah to preside until unrest subsides.</p><p>January 20: Saudi Arabia announces drastic cut in first-quarter production. 9.5 MMBD ceiling imposed. Although actual cuts never reach announced levels, spot prices of Middle East light crudes rise 36 percent.</p><p>January 20: One million Iranians march in Tehran in a show of support for the exiled Ayatollah Khomeini, fundamentalist Muslim leader.</p><p>February 12: Bakhtiar resigns as prime minister of Iran after losing support of the military.</p><p>March 5: Iran resumes petroleum exports.</p><p>Spring: Gasoline shortage/world oil glut.</p><p>March 26: OPEC makes full 14.5 percent price increase for 1979 effective on April 1. Marker crude raised to $14.56 per barrel.</p><p>May: United States Department of Energy (DOE) announces $5 per barrel entitlement to importers of heating oil. Saudi Arabia announces intention to increase direct sales and to sell less through Aramco. Both announcements send prices higher.</p><p>June 1: Phased oil price decontrol begins. Involves gradual 28 month increase of "old" oil price ceilings, and slower rate of increase of "new" oil price ceilings.</p><p>June 26–28: OPEC raises prices average of 15 percent, effective July 1.</p><p>October: Buy-Sell Program sales average more than 400,000 bbl/d (64,000 m3/d) from October 1979 through March 1980 - highest level since February 1976, due to emergency allocations.</p><p>October: Canada eliminates light crude oil exports to U.S. refiners, except for those exports required by operational constraints of pipelines.</p><p>November 4: Iran takes western hostages.</p><p>November 12: U.S. President Jimmy Carter orders cessation of Iranian imports to U.S.</p><p>November 15: Iran cancels all contracts with U.S. oil companies.</p><p>December 13: Saudi Arabia raises marker crude price to $24 per barrel.</p><p></p><p>Everybody is in favor of free market capitalism as long as it's them that are making the $$. How would you like it Highgrit, if the Govt walked in and told you that Texas beef was to be bought at $1/lb over what your state's beef can sell for--or that any calf or steer out of a cow 3 yrs old or older can't be sold for as much as a calf or steer out of a 2 yrs old? That, is what was happening to US oil before deregulation. The oil companies never said we were running out of oil, nor did they bring out the Peak Oil boogeyman--the environmentalists did. A couple of independents may have jumped on the Peak Oil bandwagon, like Aubrey McClendon (Cheasepeak Oil) or T. Boone Pickens, but the big companies never did. All they wanted was to be let loose to drill and be able to compete on the world market. Under regulation, it was cheaper to buy OPEC oil for a refinery than it was to produce it at home--that was just a bad deal for America and it took us years to catch up. Yes, once deregulated, the big oil companies made a lot of profit, just as cattle producers are making historic profits now, but I bet you don't stop the auctioneer when the bidding gets over $1/lb on one of your calves either. </p><p>Be careful what you ask for--Congress may listen to the angry housewives and enact a windfall profit tax on beef next year--because let's face it--cattle are also selling at record profits.</p></blockquote><p></p>
[QUOTE="greybeard, post: 1220775, member: 18945"] Oil, especially undiscovered and undeveloped oil is not usable oil. It's like having a bunch of heifers, no bull or AI but claiming you have a bunch of breds or pairs. Until a field is proven, it doesn't actually exist as an inventory of available oil. You're correct tho, I very much remember the '79 oil crisis, but I remember it differently than you do. I had been working for a drilling company for about a year and 1/2. There was no shortage of gasoline in 1979--at least not at first, but there was a percieved fear that OPEC would completely cut off oil and there soon would be a gasoline shortage. This led to panic buying--people kept their tanks completely tanked up, pulling into a station anytime their tanks dropped down below 3/4 tank. That is what caused the long lines, and the real shortage. There was still plenty of crude oil, and the refiners were running as close to 100% capacity as possible, but couldn't keep up with the panic buying. By spring, there really was a gas shortage, but a crude oil glut, just because of scared sheeple sitting in gas lines trying to fill that last 1/4 tank. [i]As the average vehicle of the time consumed between two to three liters (about 0.5-0.8 gallons) of gasoline (petrol) an hour while idling, it was estimated that Americans wasted up to 150,000 barrels (24,000 m3) of oil per day idling their engines in the lines at gas stations.[10][/i] You won't believe any of this of course, because you're mind is made up, but De-regulation didn't cause the 79 crisis--it was a result OF it. OPEC used to arbitrarily (for any reason or no reason) set both the price of oil-and how much they allowed thru the faucets. US oil was regulated in several different ways and it wasn't all regulated the same. Old oil, was priced lower than new oil--oil oil being oil that was discovered prior to 1972. New oil was priced higher, including the oil the refiners bought from OPEC. There was also something called 'small refinery bias" which meant smaller independent refiners paid less for their oil that the big guys did. In addition, US producers, thru the allocation program, were restricted in how much crude they were allowed to produce from a lot of the wells and fields. The '79 crisis came as a result of OPEC (specifically, Saudi Arabia's) announcement in late January '79, that they were drastically cutting production and placing a cap on production at 9 million bbls/day. Immediately spot oil prices increased worldwide 36%. January: First emergency Crude Oil Buy-Sell Program allocations. January 16: Shah leaves Iran on vacation, never to return. Bakhtiar government established by the Shah to preside until unrest subsides. January 20: Saudi Arabia announces drastic cut in first-quarter production. 9.5 MMBD ceiling imposed. Although actual cuts never reach announced levels, spot prices of Middle East light crudes rise 36 percent. January 20: One million Iranians march in Tehran in a show of support for the exiled Ayatollah Khomeini, fundamentalist Muslim leader. February 12: Bakhtiar resigns as prime minister of Iran after losing support of the military. March 5: Iran resumes petroleum exports. Spring: Gasoline shortage/world oil glut. March 26: OPEC makes full 14.5 percent price increase for 1979 effective on April 1. Marker crude raised to $14.56 per barrel. May: United States Department of Energy (DOE) announces $5 per barrel entitlement to importers of heating oil. Saudi Arabia announces intention to increase direct sales and to sell less through Aramco. Both announcements send prices higher. June 1: Phased oil price decontrol begins. Involves gradual 28 month increase of "old" oil price ceilings, and slower rate of increase of "new" oil price ceilings. June 26–28: OPEC raises prices average of 15 percent, effective July 1. October: Buy-Sell Program sales average more than 400,000 bbl/d (64,000 m3/d) from October 1979 through March 1980 - highest level since February 1976, due to emergency allocations. October: Canada eliminates light crude oil exports to U.S. refiners, except for those exports required by operational constraints of pipelines. November 4: Iran takes western hostages. November 12: U.S. President Jimmy Carter orders cessation of Iranian imports to U.S. November 15: Iran cancels all contracts with U.S. oil companies. December 13: Saudi Arabia raises marker crude price to $24 per barrel. Everybody is in favor of free market capitalism as long as it's them that are making the $$. How would you like it Highgrit, if the Govt walked in and told you that Texas beef was to be bought at $1/lb over what your state's beef can sell for--or that any calf or steer out of a cow 3 yrs old or older can't be sold for as much as a calf or steer out of a 2 yrs old? That, is what was happening to US oil before deregulation. The oil companies never said we were running out of oil, nor did they bring out the Peak Oil boogeyman--the environmentalists did. A couple of independents may have jumped on the Peak Oil bandwagon, like Aubrey McClendon (Cheasepeak Oil) or T. Boone Pickens, but the big companies never did. All they wanted was to be let loose to drill and be able to compete on the world market. Under regulation, it was cheaper to buy OPEC oil for a refinery than it was to produce it at home--that was just a bad deal for America and it took us years to catch up. Yes, once deregulated, the big oil companies made a lot of profit, just as cattle producers are making historic profits now, but I bet you don't stop the auctioneer when the bidding gets over $1/lb on one of your calves either. Be careful what you ask for--Congress may listen to the angry housewives and enact a windfall profit tax on beef next year--because let's face it--cattle are also selling at record profits. [/QUOTE]
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