U.S. running out of room to store crude oil, gas and oil may drop even lower.

[Poopymonster]

Isn't reverse actually more logical? You run out of storage space -> you stop pumping -> oil production drops, oil price rises.

How exactly having storage full drops prices further? How does that argument go?

Unlike congresspeople ignoring military leaders saying "No thank you, we have enough tanks." just to keep their constituents employed, glorious capitalist society's workers will be sent home so that profits aren't affected too adversely. Which won't let prices flux that much.

Once oil's price goes up, it's gonna spike because you can't magically turn that shit back on instantly. While ramping up in the US, prices will probably spike, presumably to "cover the wages of the people" who went back to work, leaving gas prices high as the "new normal".

[Mayhem]

I wonder how the oil trading countries will react. They certainly won´t like $20 a barrel prices. Also will this not be bringing a halt to the US oil industry? Fracking can´t be that cheap to sustain $20 a barrel prices.

[Nadiru]

Isn't reverse actually more logical? You run out of storage space -> you stop pumping -> oil production drops, oil price rises.

How exactly having storage full drops prices further? How does that argument go?

Because the reason storage has filled up is because supply has vastly outstripped demand, which means even if you turned off all the pumps which feed the Cushing storage reserve, it's going to take a long time before that supply is diminished enough to raise prices.

[Shalcker]

Because the reason storage has filled up is because supply has vastly outstripped demand, which means even if you turned off all the pumps which feed the Cushing storage reserve, it's going to take a long time before that supply is diminished enough to raise prices.

Well, there is quite rapid decline in new wells being drilled, reduction of capex across the board, as well as massive lay-offs in supporting industries.

I think earliest projections go with second part of 2015 as moment when it will actually be felt as supply reduction; and before that supply might even rise.

[Kraenen]

This is actually going to (and has already) affect the unemployment rates in places like Alta. where the promise of jobs in the oil industry were sold to many.

http://www.theglobeandmail.com/repor...ticle23443756/

[Deleted]

Agree, it's fucking up the oil industry in my country with thousands of redundancies already. US fucking Russia is fucking way more than Russia.

Tell us in Europe about it

[Ulmita]

At what point an economic war is viewed as regular war? I mean what is the difference between those two? In both cases people are suffering.
The states are trying to topple regime to Russia with all they got.

What will happen if Russia decides that USA has declared all out war by trying to push the country into an economical abyss and wants to return the favor? At some point they will be forced to retaliate in order to keep their national integrity.

[Deleted]

At some point they will be forced to retaliate in order to keep their national integrity.

The same reason Ukraine do not retaliate agent Russia who trying to destroy Ukraine national integrity, you do not start a war if you believe you cant win it.

[Axelond]

You know what they are proposing in Sweden? Now with gasoline prices around 170$ barrel it's becoming to cheap to drive cars. With lower gasoline consumption and cheaper gas it's currently all time low for cost to drive. To fix the issue of more people driving they want to raise taxes to bring gas back into the 200$ barrel bracket to stop people driving.

[Grummgug]

That is one of the dumbest things I have ever heard. Religion can have an impact on our rate of technological advancement: I mean, for gods sakes, do you have even the tiniest idea what kind off impact the Dark Ages had on our rate of technological advancement? Likewise, competition between Islamic nations and Christian nations back around the time of the crusades gave us some pretty amazing spreads and developements in Archetecture.

Politics can also have a HUGE impact on technoligical advancement. If you don't think the space race / cold war between the USA and USSR had a measurable impact on our rate of technological development in the Aeronautics industry, you seriously must be out of your mind. And lets not forget that the American Government single handedly set back Fighter Jet tech at least a decade by forcing the Canadian government to practically completely obliterate any traces of the Avro Arrow project (which was so far ahead of it's time, American Jets rolling off assembly lines nearly a decade later still underpreformed compared to it).

Examples of why you are wrong:

The growth of computing power over the past 100 years is a smooth curve. NOTHING altered it one way or the other. Not even WWII nor the Great Depression.



The growth of random access memory improvement is exponential and unchanged:



magnetic data storage growth, again exponential and unchanged:



Total US GDP has been growing exponentially. Nothing alters its course. Not Wars, not recession, not depressions:



Same as per capita:



US Manufacturiing is a smooth exponential curve. Nothing alters its course.



Ecommerce, again a smooth exponential curve



Advancement is solar power technology is a smooth curve. Nothing alters it from its course:



Its amazing, but true. Progress is a smooth curve and events don't alter its path.

Sounds like you need to study up on the laws of accelerating change:
http://en.wikipedia.org/wiki/Accelerating_change

[Rukentuts]

Isn't reverse actually more logical? You run out of storage space -> you stop pumping -> oil production drops, oil price rises.

How exactly having storage full drops prices further? How does that argument go?

Probably because the demand for imports stops Bob

[Ulmita]

The same reason Ukraine do not retaliate agent Russia who trying to destroy Ukraine national integrity, you do not start a war if you believe you cant win it.

Dont compare apples with oranges. Plus they can easy say if we can't exist you can't either. And then shit will get real.

[I Push Buttons]

I am against oil prices dropping any more. Only because my father is in the oil industry.

- - - Updated - - -

Dont compare apples with oranges. Plus they can easy say if we can't exist you can't either. And then shit will get real.

He isn't comparing them, simply using that as an example... Those running the show in Russia are the same as those running the show anywhere... People in power want to remain in power... Right now they are pretty secure in that position... Starting a war that would literally accomplish nothing other than their own demise is a pretty illogical thing to do... Despite what goes on in the media... Putin is as logical and self-interested as anyone...

One side or the other will back down long before any shooting is even remotely close... Probably the United States, though potentially Russia depending on how stuff goes internally... The people in Russia are probably only willing to take so much to preserve their national ego before they call bullshit...

[Osmeric]

The "running out of storage space" thing is overblown.

The oil market has been in a state of "contango", where the value of futures are inverted. When that happens, it pays to store oil for delivery later. But this will eventually resolve, and the oil will instead be sent to refineries.

We may see imports decline further, if refiners in the US can get more oil locally. This is a good thing. Eventually, we might even see export of crude oil (currently banned by federal law).

Another interesting thing overhanging the oil market is the "fracklog" (fracking backlog). There are thousands of shale wells in the US that have been drilled, but have not yet been fracked. If oil prices jump up, they can be rapidly completed and put into production. This will exert a strong dampening effect on any upward surge in oil prices. This is unlike conventional wells, where a larger investment and longer payback period makes them less able to quickly affect prices.

[oxymoronic]

Agree, it's fucking up the oil industry in my country with thousands of redundancies already. US fucking Russia is fucking way more than Russia.

why would you consider this USA's fault?

[Laila]

I wonder how the oil trading countries will react. They certainly won´t like $20 a barrel prices. Also will this not be bringing a halt to the US oil industry? Fracking can´t be that cheap to sustain $20 a barrel prices.

Fracking is for natural gas, not oil.

[oxymoronic]

Examples of why you are wrong:

drawing lines thru a few graphs is hardly showing anything. you can't say whether or not things would have advanced better if not for a recession, but industry pro's that know, will tell you, investors dont invest during recessions as much as they do during the good times. simple.

[Mayhem]

Fracking is for natural gas, not oil.

Oh, ok thanks.

[Deleted]

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.

America reducing the price of crude oil?! Are you mad?!

Most likely, the government will just find excuses to "liberate" another country in the Middle East in the name of righteousness and goodwill, and keep the oil there until it's needed.

[oxymoronic]

And lets not forget that the American Government single handedly set back Fighter Jet tech at least a decade by forcing the Canadian government to practically completely obliterate any traces of the Avro Arrow project (which was so far ahead of it's time, American Jets rolling off assembly lines nearly a decade later still underpreformed compared to it).

i looked it up and wiki didnt mention that part. besides why would you give up a plane for the USA? damn bullies