I think it’s also possible that the oil companies have been over producing for so many years, because the price was so high, that they have backlogged a huge surplus of oil that they just can’t keep off the market any longer. There are only so many places that you can hide the stuff.
“There are only so many places that you can hide the stuff.”
I’m a producer and I’m interested in why anybody would think I would shut down my income just to sit on oil, my bills come in every month just like everybody’s. And as far as hiding it good luck! There are state agencies that keep track of every barrel produced, states receive a severance tax on every barrel produced. Trying to hide oil is a good way to go to jail and shut down your business. We make no money by sitting on oil.
EIA expects that global liquid fuels supply will continue to outpace consumption, resulting in an average stock build of 0.4 million bbl/d in 2015. Stock builds are expected to be concentrated in the first half of the year, averaging 0.7 million bbl/d during this period. EIA forecasts global liquid fuels supply to average 92.8 million bbl/d in 2015
