The World Is Running Out of Places to Store All of Its Oil
Source: Slate
The main cause here, again, is that oil production is still outstripping demand. But the problem is being exacerbated because the crude market has entered what's known as contango, which is when buyers are willing to pay more for oil delivered a few months from now (when supplies might finally drop and bring up prices) than they are for oil delivered today. Investors have responded by snapping up cheap crude now, putting it in storage, and locking in futures contracts that amount to guaranteed money. (Good news for them: There's even talk of the market hitting "super contango." As a result of all this activity, the Journal reports that the cost of storage itself is rising, which is leading to the creation of the brand new trade in oil storage futures. Weird things are happening.
Read more: http://www.slate.com/blogs/moneybox/2015/03/05/oil_market_update_the_world_is_running_out_of_places_to_store_all_of_its.html
Erich Bloodaxe BSN
(14,733 posts)Ie, reduce 'production' until such time as demand has lowered the amount sitting around in tanks.
fredamae
(4,458 posts)and let the "investors" mark their spot (pee on it, mark it with a pile of stones, signage or whatever)for the future demand...if there Is one.
It's better for us And the environment, imo.
Buzz Clik
(38,437 posts)Both groups hate fracking but for totally different reasons.
global1
(25,166 posts)wordpix
(18,652 posts)any excuse will do
wordpix
And still - in most of Europe - we pay the double - or even triple what you pay for a gallon of petrol - we pay at least the double you pay for a liter of petrol (and its 4 liter to each gallon you must remember, or if you use british gallon, its 3.9 liter) so I guess you still is better off - even if it is expensive...
But, we do have universal Health Care and social services most americans would be in envy over too - so I guess it kind of level itself out sometimes down the road...
Norway even produce petrol for the world marked - and even then we pay between 8 and 11 dollar for eatch liter petrol we got on our cars....
Diclotican
DeSwiss
(27,137 posts)~DeSwiss
The Zeitgeist Movement
DeSwiss
Compared to what the rich own, earn and get away with when it come to "tax evasion" I doubt we got half was the society should have had if the world have had been rightfully and where everyone get what they had need for... If not the richest of us, had been able to plunder steal and to evade their share of the tax burders - we would have had a whole world of plentifully - where everyone of us, 7 billion would have gotten everything we was in need of - and where it was no hunger, no want, no people who was to poor to contribute to the community... It would have been a paradise on earth more or less... Where we all could explore all our possibilities not just the ones we need to be able to work, so we do not starve to death....
It is not communism -or some other ideal setting I'm talking about - it is just a fair society where everyone have the possibilities to do what they is able to do - and where all of us, the ones who doesn't need any help - or for the ones who are sick, disabled or other vice need assistance is given that.. It is a Just society - a just world... A world I suspect most of the 7 billion who live on this planet would prefer living in, if ever given the chance to do so....
Diclotican
snooper2
(30,151 posts)try another station
olddots
(10,237 posts)This is not a storage problem it is a greed problem .
DeSwiss
(27,137 posts)K&R
GeorgeGist
(25,294 posts)leave it in the ground.
neverforget
(9,433 posts)$2.80/gallon.
PatrynXX
(5,668 posts)talks about oil naturally puts a pro Transcanada XL Pipeline ad on this page
Fred Sanders
(23,946 posts)To be transported across the breadth of America, this dirtiest butimen on earth, to the Gulf, where half of it will be....exported?
Meanwhile solar cell efficiency reaches an astonishing 40%....and rising to who knows where?
XL is just another pipeline, just the usual jobs and construction and socio-economic costs all easily calculated from the thousand other pipelines already built...... but take a close, close, look at what it will be pumping and then processing...the dirtiest oil on earth.
It is not logical, Captain Obvious.
quadrature
(2,049 posts)(these terms are from the commodities business)
'contango' is normal.
'backwardization' is not normal