France Releases 285,000 Tons Crude From Strategic Stocks

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Vortex
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France Releases 285,000 Tons Crude From Strategic Stocks

Post by Vortex »

France has released 285,000 metric tons of crude oil from its strategic petroleum reserve, a spokesman from the French finance ministry said Thursday.


The country has taken action as a result of a short-term shortage of crude oil and products, spokesman Jean-Marc Plantade said.
http://www.lloyds.com/CmsPhoenix/DowJon ... ?id=371266
MacG
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Post by MacG »

Is someone lying here? How on earth could it help to release crude when there is a lack of products due to refinery maintenance? Who would refine the released crude if refinery capacity is down?

Honestly, those few lines was probably the most scary thing I've read in a VERY long time.

Record highs in crude which is not reflected in product prices, and now shortages. It might be just a matter of time before we see "out of gas" at the local pump, and then all hell breaks lose.

Honestly, I had not expected this. I had expected rising prices, slowly breaking our backs, not a skullcracking blow.
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Andy Hunt
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Post by Andy Hunt »

How do they know the shortage is "short-term"?
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MacG
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Post by MacG »

Andy Hunt wrote:How do they know the shortage is "short-term"?
Wondered about the same thing. Guess that *all* shortages are perceived as "short term" for people who think short term. As soon as the stockpiles are released there is no shortage anymore. Problem solved. Until the next "short term" shortage.

But why worry about future problems now? Let's take care of the problem when it arrives. Most problems go away if you just ignore them. Only old women worry about the future, and they worry about everything and if you listen to them you would not do anything than taking care of the future problems they create in their vivid imaginations. We are MEN, and solve the problems in front of us. Releasing some stockpiles to mend some short term shortages for example. Next!

[/irony]
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Andy Hunt
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Post by Andy Hunt »

Well, as Keynes said, in the long run we are all dead.

Nice to know the economists are so concerned about our ongoing welfare, eh.
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RenewableCandy
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Post by RenewableCandy »

MacG wrote: We are MEN, and solve the problems in front of us. Releasing some stockpiles to mend some short term shortages for example. Next!

[/irony]
Pass the chainsaw, dear!
MacG
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Post by MacG »

RenewableCandy wrote:
MacG wrote: We are MEN, and solve the problems in front of us. Releasing some stockpiles to mend some short term shortages for example. Next!

[/irony]
Pass the chainsaw, dear!
Hah! You are hereby diagnosed with "Chainsaw Envy".

Edit: I got close to 80 liters of fuel and close to 25 liters of chain oil in stock. Together with four swords and chains and lots of files. Should last for at least ten years of woodcutting at today's pace.

And when the fuel and oil runs out I got a bunch of traditional saws with hardened teeth and a couple of diamond sharpener.

And when the hardened blades and the diamonds run out, then I will resort to soft iron saws which can be sharpened with a file. And I know how to cut and harden a file in a charcoal foundry.

But then I will be dead from high age.
Last edited by MacG on Thu Nov 01, 2007 10:44 pm, edited 1 time in total.
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PS_RalphW
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Post by PS_RalphW »

I wonder if the short term problems are related to the Coryton refinery in Essex ? - There was a little local difficulty there yesterday...
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Andy Hunt
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Post by Andy Hunt »

Plantade said oil product supplies in the country had become more scarce due to planned maintenance at two major refineries - Feyzin and Gonfreville, both operated by Total SA (TOT).
I fail to see how releasing crude oil stocks will ease the lack of refined product, if there are no refineries to process it . . . :?:
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Erik
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Post by Erik »

The story being run at Lloyd's has been expanded a bit since Vortex's original post:
http://www.lloyds.com/CmsPhoenix/DowJon ... ?id=371272
France's move could signal its desire to process more crude when its refineries are back online, to help build up heating oil inventories even at a time of high underlying crude oil prices.
I'm not familiar with the logistics of all this, but doesn't this simply mean they're "releasing" the crude now in order to have it ready for refining just as the refinery comes back on line? Could it simply be a short-termist measure to cut costs by eating into the reserves a bit instead of buying in more crude oil at what the French perceive to be unreasonably high prices this month? Maybe they just messed up their demand forecasts this year and have been waiting futilely for prices to come down before they buy in the extra that they need?

I'm probably missing something... I await corrections!

MacG - just seen your comments on the peakoil.com thread !! Very nearly turned into a storm of abuse about who's continent is best, US vs EU!!! Jeeeesus, I wish people could calm down and relax a bit more whilst they're discussing the end of the world as we know it :roll:
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Papillon
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Post by Papillon »

I find this report very confusing to say the least, if not misleading.

1)
The country has taken action as a result of a short-term scarcity of crude oil and products, spokesman Jean-Marc Plantade said.
Hah?? Shouldn't that be end products?

2)
France has released 285,000 metric tons of crude oil from its strategic petroleum reserve
France's strategic petroleum reserves in 2005 totaled approximately 65 million barrels, according to IEA data.
So how many million barrels are 285,000 metric tons? Is it just me?
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SunnyJim
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Post by SunnyJim »

I wonder if this has anything to do with hedge funds and the $100 dollar barrier????
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RogerCO
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Post by RogerCO »

Papillon wrote:So how many million barrels are 285,000 metric tons? Is it just me?
About 7.3 barrels in a metric tonne. So the release is just over 2 million barrels or 3% of their stated strategic reserve.
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RevdTess
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Post by RevdTess »

It seemed very confusing to us at the office also that they would release crude stocks when it was a problem with refineries.

In fact the story was later corrected on Bloomberg to say 285,000 tons of oil products, not crude.

Which makes a lot more sense, as you all noticed, clever folk that you are.
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Post by RevdTess »

Incidentally, the latest data (August 2007) shows France has 55 million barrels of gasoil&diesel in government stocks, and 12 million barrels of gasoline.
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