Posted on 04/24/2020 6:29:21 AM PDT by Enlightened1
By now even the 165,727 "professional investors" who are long the USO ETF on the free, glitch-prone platform Robin Hood, are aware that the problem facing global oil production is that there is simply no storage where to put all the physical oil (as we warned in late March).
And if even the army of Robinhood-ers now know how impossible it is to find space for physical oil on the continental US, then Saudi Arabia - which sparked the current crude crisis and which will not stop until shale is completely crushed - is certainly aware.
Which is why with the US unable to store its own output, some 50 million barrels of Saudi oil are on their way to the United States and due to arrive in the coming weeks, piling even more pressure on markets already struggling to absorb a glut of stocks, Reuters and MarineTraffic reported.
Shipping data showed the more than 20 supertankers - each capable of carrying 2 million barrels of oil - were sailing to key U.S. terminals, especially in the U.S. Gulf. Three separate tankers, also chartered by Saudi Arabia, were currently anchored outside U.S. Gulf ports.
According to Reuters sources, the kingdom had tried to seek storage options for the cargoes from tanker owners when the ships were chartered last month, but many pushed back given booming rates and not wanting tied up vessels.
The result was an outpouring of anger from the increasingly political hedge fund manager, Kyle Bass, who tweeted earlier that "the Saudis and Russians have declared war against US shale energy companies. It seems they weren't happy with American energy independence.
(Excerpt) Read more at finance.yahoo.com ...
Did we sink all the Nazi U boats which were off our coast pummeling our supply ships during WW2? If not, this seems it can be cheaply fixed.
Yes why not? Why isn’t it a good idea to take the nearly free crude oil and store it somewhere. We waste so much taxpayer money on crap why not figure a way to pour ithe crude back into an emptied out salt dome.
That’s about 2 to 3 days worth of crude here in the US. We consume close to 8 billion barrels a year. Not something I’m going to get exited about.
I might add that once we’re full we’re full and the refineries won’t be accepting anymore. The big tank farms are at or near capacity.
We still need to import 7 million barrels a day. We are not truly energy independent.
But through our refineries, we do make enough gas, diesel and other fuels to be energy dependent...we export the finished product but the basic barrel of oil, we still need to import.
Obviously, with the US increasing production the last three years, this has caused the price of oil to decrease - hurting Saudi Arabia and particularly Russia. So through the marketplace, both countries pumped as much oil as they could to hurt the shale producers hoping to force them out of business for good to shore up their share of the market and increase the price.
They tried this during the Obama administration and the result was the shale producers were able to decrease the cost of producing a barrel of oil - but there are limits.
Russia and Saudi Arabia are using the supply and demand rule to run the producers out of business - all is fair in the capitalist world. We've tried to hurt them by the US pumping so much oil the price goes down and we have been successful and they are fighting back.
I hope the restof the world realizes this is all China’s fault
The main challenge is the ability of small producers to cover the payment on the loans they took out to build their oil field.
Bloomberg: Trump Developing Plans to Aid Oil Despite Democrats’ Opposition”
No shots fired.
Take down Iran, Russia who oppose the Saudi Mid East Policies (and our interests)
F Venezuela their leaders deserve to go down. Their military is no threat.
Support US oil makers with the money saved from having to fight Russia and Iran in conventional ways
The QUESTION is .. What is the endgame or plan to affect the aftermath of the result inside Russia and Iran
Topped the tank off at $1.349 at Sam’s Club yesterday...Charlotte.
Maybe Saudi Arabia is trying to kill some of its oil competitors while it can.
In spite of the cost (higher consumer gas prices), I’d just as soon demand, for now, temporarily, all U.S. domestic oil use come from domestic sources. We might get away with it now, with consumption down so much, and keep our industry humming until the global economy comes out of lock down.
Sell it at 10 cents above the individual states tax per gallon then. People need a break and jump start right now, and truckers, and airlines.
A coworker with experience in Saudi Arabia called them “tablecloth and fan belt”.
Russia doesn’t have to sell oil here to declare an oil war here. All they have to do is pump oil and drive the price down below $48-$50/bbl for an extended period of time, making shale unprofitable. It’s not rocket science.
Re: “Good time for us to start to get out of the ethanol monstrosity.”
Believe it or not, ethanol is (was) a key part of our energy exports.
The popular idea that the USA had become energy independent was misleading.
We were primarily exporting ethanol, natural gas liquids, and “refinery gain,” which is what happens when one gallon of crude oil is broken down into more than one gallon of less dense refined products.
From memory, we still needed to import about 4 million barrels a day of transportation fuels and raw crude.
“Yeah, the Suadis can only afford three AMG Mercedes now instead of 5.”
Years back the place I worked for had a downturn in biz. We all knew our pay cuts were justified when the company owner went from owning a BMW Series 7 to a Series 5.
I don’t care if it is part of our exports, it is a monstrosity. We need to help farmers with the transition, but should get ourselves, the environment and our vehicles out of it ASAP.
50m barrels is two days of US demand. I think we can desist from grabbing ourselves in terror.
2 and 1/2 days but who is nit picking.
So it's another incendiary headline from the Fake News.
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