Expect gas/oil prices to rise - oil rig sinks off Brazil coast

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From what I can tell this was a big rig. They're trying to keep 400,000 gallons from leaking. Even if there is no environmental disaster it's taking a lot of oil out of the supply pipeline.

http://dailynews.yahoo.com/htx/ap/20010320/wl/brazil_oil_rig_6.html

-- Sandra (sklukas@mail.state.tn.us), March 20, 2001

Answers

Such good news lately ! I think someone is trying to tell us something , between whats going on in the UK and now this , the middle East and the list goes on .It's getting scarier day by day .

-- Patty {NY State} (fodfarms@slic.com), March 20, 2001.

And don't forget the stock market.

And I didn't read the article close enough. There were 400,000 gallons of oil & diesel fuel on the rig, waiting to be shipped, I suppose. It pumps 83,000 gallons of oil a day.

-- Ladybug (sklukas@mail.state.tn.us), March 20, 2001.

I was not aware Brazil sold crude oil on the open market.

-- Lynn Goltz (lynngoltz@aol.com), March 20, 2001.

I don't know either, not up on the Brazilian economy :), but I bet when/if prices rise the oil companies will put the blame there. I do know it's not going to help their economy.

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Finance Director Ronnie Vaz Moreira said that with a total loss of production from the rig, Petrobras would lose $450 million this year. The loss also could hurt Brazil's trade balance, which has been stuck in the red for years.

The accident sparked criticism of Petrobras, which has laid off workers and raised profits to a record $5 billion last year. Critics say Petrobras is farming out jobs to less-qualified companies, which increases safety risks.

The oil rig disaster also has added to economic jitters and helped to push the Brazilian currency to two year-low. On Monday, it dipped to 2.17 to the dollar before recovering.

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And BTW, yes Sandra and Ladybug are the same. Gotta keep these names straight ;).

-- Sandra (sklukas@mail.state.tn.us), March 20, 2001.

This shouldn't have much of an effect on world oil prices. 83,000 gallons is only 1976 barrels. The recent OPEC cut of 1,000,000 barrels a day will likely have more of an effect.

-- Steve - TX (steve.beckman@compaq.com), March 20, 2001.

*sigh* I'm getting senile.

I re-checked. It is 83,000 barrels a day. Still not much compared to OPEC, but it sure ain't going to help.

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The rig, built in Italy and later modified in Canada, was the top producer in the oil-rich Campos Basin, which accounts for most of the 1.5 million barrels of oil Brazil produced daily. The platform was pumping about 83,000 barrels of oil and processing 1.3 million cubic meters of gas daily, but the company had plans to raise its production to 180,000 barrels a day.

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-- Sandra (sklukas@mail.state.tn.us), March 20, 2001.

Well... OPEC just cut another 4% off of the output... Not a month after their little solar energy conference. I've been watching the local paper on this one... They really tried hard to save it - just one more headline.... No, not cynical, just waiting for the next installment -

-- Sue Diederich (willow666@rocketmail.com), March 20, 2001.

Fuel oil today is 1.12 a gallon for number 2 grade, expected to go DOWN tomorrow a few cents, propane is 1.49 today, expected to drop by June. This in Monroe county Ohio, what's prices like where you live?

-- Annie Miller in SE OH (annie@1st.net), March 20, 2001.

1.51 for 87 octane gas in Northern NY

-- Patty {NY State} (fodfarms@slic.com), March 20, 2001.

The reason for the reduction in oil is due the the falling stock prices and the slowing economy.The less products people buy the less trucks used to deliver them .The less trucks, the less fuel used .If there is a sudden surplus of fuel,the prices will drop drastically.Making stocks in oil drop.If producing oil is reduced,the the prices will be more stable,so will oil stocks.I don't think they'll be a shortage.

-- Steve (a12goat@cs.com), March 22, 2001.

Annie, gas prices here are about $1.49 a gallon. In Northern Maine

-- michelle (tsjheath@ainop.com), March 25, 2001.

-- (noneofyour@biz.com), July 13, 2001