Side band question for you.
How/where is “oil” stored previous to either shipment or refinement? I assume very large facilities; but my other (ignorant) question is how much can be “stockpiled” during this price war (of sorts)? Are there ways to keep the wells producing and simply sitting on the product before it is actually “used”?
(I know nothing about this field, learning as I go.)
Many terminals where oil is brought in or out of pipelines have storage, sometimes immense storage like we find in the greater Cushing, Oklahoma area. Houston Ship Channel is significant as well.
The shippers need some flexibility as “in” doesn't always perfectly match “out”. This is done at production facilities as well as refineries.
See the tanks at:
https://www.google.com/maps/place/Houston+Ship+Channel,+Texas/@29.7325788,-95.1619858,5624m/data=!3m1!1e3!4m2!3m1!1s0x8640bc46cf2551bb:0x387ad8779a55e640
Are there ways to keep the wells producing and simply sitting on the product before it is actually “used”?
It is a matter of cost, up to a limit of course. I thought I read in previous articles about ~$1/barrel/month but I may have that way off.