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US running out of room to store oil; price collapse next?
Posted on 3/3/15 at 5:38 pm
Posted on 3/3/15 at 5:38 pm
LINK
Drink up, oilfield baws
quote:
NEW YORK (AP) — The U.S. has so much crude that it is running out of places to put it, and that could drive oil and gasoline prices even lower in the coming months.
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For the past seven weeks, the United States has been producing and importing an average of 1 million more barrels of oil every day than it is consuming. That extra crude is flowing into storage tanks, especially at the country's main trading hub in Cushing, Oklahoma, pushing U.S. supplies to their highest point in at least 80 years, the Energy Department reported last week.
If this keeps up, storage tanks could approach their operational limits, known in the industry as "tank tops," by mid-April and send the price of crude — and probably gasoline, too — plummeting.
"The fact of the matter is we are running out of storage capacity in the U.S.," Ed Morse, head of commodities research at Citibank, said at a recent symposium at the Council on Foreign Relations in New York.
Morse has suggested oil could fall all the way to $20 a barrel from the current $50. At that rock-bottom price, oil companies, faced with mounting losses, would stop pumping oil until the glut eased. Gasoline prices would fall along with crude, though lower refinery production, because of seasonal factors and unexpected outages, could prevent a sharp decline.
Drink up, oilfield baws
Posted on 3/3/15 at 5:40 pm to Jim Rockford
quote:
The U.S. has so much crude that it is running out of places to put it,
Weren't the tards saying about 35 years ago that we were running out of oil?
Posted on 3/3/15 at 5:42 pm to Jim Rockford
quote:
faced with mounting losses, would stop pumping oil until the glut eased.
So it won't stay low for long.
Posted on 3/3/15 at 5:43 pm to Jim Rockford
So they need to figure out ways to be more efficient. Cool, this will bring about innovation
Posted on 3/3/15 at 5:43 pm to Jim Rockford
quote:
and that could drive oil and gasoline prices even lower in the coming months.
Posted on 3/3/15 at 5:43 pm to Jim Rockford
quote:
though lower refinery production, because of seasonal factors and unexpected outages, could prevent a sharp decline.
Slow to fall, quick to rise.
Posted on 3/3/15 at 5:43 pm to Henry Jones Jr
quote:
Weren't the tards saying about 35 years ago that we were running out of oil?
Sales scam. We have more oil capped off in the gulf of mexico than they have in the middle east. The problem is our raising cost is so much more. The oil in camelville is very shallow and has a raising cost of about $4.00 a barrel. In the US our cost to raise oil averages about $15.00 a barrel.
Posted on 3/3/15 at 5:43 pm to Jim Rockford
This doomsday scenario will never come to fruition. Capex cuts of +30% for all US e&p's have already been announced. Production will be relatively flat for this year. Prices will hover in the 50-60 range.
Posted on 3/3/15 at 5:44 pm to Jim Rockford
So uh, building new storage things are out of the question?
Posted on 3/3/15 at 5:46 pm to blue_morrison
quote:
So uh, building new storage things are out of the question?
They probably will, but they can't be built overnight. Would also think that return on investment might take a lot longer than excess oil will be around.
Posted on 3/3/15 at 5:47 pm to blue_morrison
Those huge tank farms take years to design/build.
By the time it's ready to receive oil, it would probably be too costly to store it.
By the time it's ready to receive oil, it would probably be too costly to store it.
Posted on 3/3/15 at 5:47 pm to Jim Rockford
for some reason Citibank has been screaming $20 oil for months now, don't know their agenda
Posted on 3/3/15 at 5:48 pm to Jim Rockford
.99 cent gas. frick yea
Posted on 3/3/15 at 5:48 pm to Henry Jones Jr
quote:
Weren't the tards saying about 35 years ago that we were running out of oil?
They also say we have global warming during the harshest winters in a 100 years. That gluten free is actually something. That cross fit invented excercising. And that Obama isn't a Muslim supporter when he just paved the way for Iran to make a nuke.
Posted on 3/3/15 at 5:51 pm to Jim Rockford
Meanwhile on planet Reality gas is up 50 cents in the last month.
Posted on 3/3/15 at 5:56 pm to yellowfin
quote:
for some reason Citibank has been screaming $20 oil for months now, don't know their agenda
You know who owns a shite load of Citibank?
This dipshit:
Juuuuust sayin'
Posted on 3/3/15 at 5:59 pm to Jim Rockford
Which fear mongers are closer to the truth. Saw some articles last week predicting $200 a barrel in the next year.
Posted on 3/3/15 at 6:01 pm to The Boat
quote:
Meanwhile on planet Reality gas is up 50 cents in the last month.
And...summer will be here soon, bringing the usual increase in demand for gas and oil.
Posted on 3/3/15 at 6:01 pm to Jim Rockford
Once production is cut to where it needs to be, the bottom won't last long
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