Posted on 04/20/2020 10:42:36 AM PDT by ConservativeInPA
Bottom line is there is very little storage remaining. Saudi's are shipping oil our way. F'n Shummer pulled money for the last COVID-19 bill to fill the strategic national reserve. Cushing, OK is about full. If future contracts fall below $0 and stay there until expiration, then oil producers will have to pay buyers to take oil off producer's hands.
I don't want to think about the consequences of having no place to store oil. You can't just turn off all oil wells.
“It is a matter of consumption to start emptying storage.”
And/or more storage.
With awful consequences.
The government has to pay for it. There were some funds appropriated earlier, but regardless, the strategic national reserve isn’t very large. It does not nearly make up with the glut of oil on the market today due to these ChiCom Virus shutdowns.
“”You can’t just turn off all oil wells.””
Sure you can and that’s exactly what we’re doing.
And where do you find storage? Milk trucks?
Oil companies can't make money at $2 a barrel? Then scale back or halt production. If enough of them do that, less supply. Same demand means prices rise. if demand increases, prices rise further. then others come back on line if they can make money. supply and demand. basic economics. this applies to EVERYTHING. Everything. No exception. It's when governments interfere markets get FUBAR
Also strange is none of the oil plays are down much at all. In Canada, even oil sands like ENB.TO and SU.TO are stable....
I wrote “all” oil wells. And that is the fact. Certainly they are shuttering a lot of oil wells, but not all.
What is the real theme here is the insanity of the markets right now. Nothing adds up. If oil prices are a signal of a Depression, why isn’t copper or natural gas collapsing? Both of those have seen rallies as of late. If I understood what the hay is going on I would invest in energy.
Cars? Hell! Everyone buy crude oil and fill up your swimming pools, your kids' wading pools, your bathtubs & sinks & toilets. This is important. No time to worry about possible side effects.
What we should be worried about is, who is behind this?
I am guessing that POS George Soros.
“ This country has been seriously dumbed down.”
I would the country has been seriously sold out...the largest political party in America has been purchased whole by the Chinese (with a little nod to the fascist Soros), as well as most of the establishment media.
It’s called being boxed in...by the fact that much of your own country is actively working for its own destruction.
Didn’t the Democrats run on ending all fracking? I guess we’re going to see how that looks as it ripples through the economy.
The fact is that this will correct itself because it has to correct itself. If oil is worthless then production will fall to zero. The oil companies would go bankrupt. And after a time then there would be pretty much no oil. And at that point what little oil remained would be so expensive that only the super rich could even buy it.
Ayup.
Yep, really cheap oil, and we have a lot of room. But the democrats held americans hostage to make sure no oil could be placed in the reserve.
And frankly, Trump should use the emergency declaration to use OTHER funds to fill the thing, because it should be done.
I guess your going to have to show me one I can’t turn off, shut down or shut in.
BTW, it now COSTS the producers $35.20 a barrel to get the oil off their hands. Something is broken.
No, but you can exercise the President's anti-dumping powers, and raise tariffs on imported oil to $60/bbl, thus protecting the domestic industry.
An enviromentalists dream
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