upersleder

this is the last couple paragraphs from an article

The U.S. crude build was accompanied by a 900,000 barrels fall in distillate stocks, including heating oil and diesel fuel, to 115.7 million, 12 percent below last year, the EIA said.

U.S. distillate demand is running 8.1 percent above last year as solid economic growth bolsters diesel consumption. Traders expected supplies to improve as refineries come back on stream following seasonal maintenance work.

"The market believes when refiners return from turnarounds, that they are going to push distillate output to a record, thus easing concerns of a supply shortage this winter," said Ed Silliere, analyst, Energy Merchant Corp, New York.

the whole thing is here
http://money.excite.com/ht/nw/bus/20...s-sp67665.html

wonder if this is a good or bad deal?

apache

My guess would be bad, more $$$. Bet next summer it will hit $3.00 a gallon. I read some posts here on the " peak oil " situation. Had some interesting reading and theorys.

infidel

Prices may go up and down in the short term but are going to end up real high within the next couple of years.
Increasing world demand for crude isn't going to let up. China is now following our lead and buying up crude to fill a petroleum reserve with the windfall they are making loaning money to the US government to finance our deficit.
Two billion dollars per day in interest alone.

Time to face it, oil is a finite resource, poking in new wells is a very short term solution.
Looking back we should have used good old US technological know-how back when oil shortages popped up in the '70s for a solution that didn't involve petroleum. We'd be sitting pretty by now. As it stands I'm sure we'll come up with a solution but there might be a lot of people hurting before we get there.

Begle1

We did use good old fashioned American know how. The Department of Energy was founded, and it's main purpose was to remove our dependency off of foreign oil. However, since then it kind of got sidetrecked. Still, if need be, we can always make Biodiesel out of crops, or grow algae for it. The EPA did figure out how to make Biodiesel from algae, basically on an infinite level, for about 5 bucks a gallon. (I think that was the number based off of the 1970-ish study...) So we know it can never go above that, not that it's saying very much. Of course, blending it with existing petrodiesel, the price will gradually plataeu, and the rate of increase will be lower. If need be, we can convert onto Biodiesel, but it's just a few cents cheaper still for petrostuff, so why bother?