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Hoarding is exactly what the government is doing right now by filling the SPR, and frankly it's the best thing that could happen. It drives prices up. High prices encourage demand destruction. They also finance new well development. The hoarded oil gives us a buffer to fall back on once shortages become more prevalent. High prices are what we need in order to adapt to what's coming, and the sooner they happen, the better.

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Pipeline Fire Traced to Pinhole Leak
Production; Extraction; ExplorationCLEARBROOK, Minn. (AP) - An oil pipeline explosion that killed two workers and caused a spike in oil prices can be traced back to a pinhole leak first repaired three weeks ago, the company said.

The fire was extinguished Thursday morning, and oil prices ended the day just slightly higher after it became clear that the Enbridge Energy pipeline would come back on line quickly.


Enbridge spokesman Larry Springer said Friday that workers were trying to remove leaked oil from around the pipeline. Once that's done it can be repaired.

He said the company still hoped to have the pipeline fixed within a few days, and that it was running at 80 percent of capacity in the meantime.

AP

Posted on Friday, November 30 @ 13:43:11 PST by Leanan
 
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