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Someone's going to find a creative way to store large amounts of oil and make a lot of money in a few years.
by DevX101 6y ago
Someone's going to find a creative way to store large amounts of oil and make a lot of money in a few years.
- ethbro 6y agoPhysics would argue otherwise.
- recursive 6y agoAnd what would that argument be?
- turbinerneiter 6y agoI think gas goes bad after some months, not sure if crude degrades as well.
- tantalor 6y agoIt's been buried for 100 million years, I don't think a few months is going to do anything.
- bb611 6y agoGasoline and other petroleum derivatives are not a stable as their underlying source. However consumer gas will last a few years with proper care and storage, the real issue will be when appropriate storage runs out.
- NikolaeVarius 6y agoParent specifically noted crude
- onlyrealcuzzo 6y agoSo what happens if you have gas in your car and don't drive it for 4 months???
- bradstewart 6y agoThere's a decent chance your car won't start. The gasoline in the tank is probably fine, but the gasoline in the fuel lines and so forth has likely turned in useless gunk.
- FartyMcFarter 6y agoProbably buried in a very different environment?
- nogabebop23 6y agoThe knock-on price is to refined gas, but when we talk price/storage of oil that's not ready to put in your car gasoline.
- deleted 6y ago[deleted]
- discordance 6y agoOil tankers are being used for storage: https://amp.theguardian.com/business/2020/apr/19/supertankers-drafted-in-to-store-glut-of-crude-oil-coronavirus https://amp.theguardian.com/business/2020/apr/19/supertanker...
- exothermic 6y agoFloating storage levels for crude are already double what they were a week ago [0] [0] https://uk.reuters.com/article/us-global-oil-tankers-storage/crude-oil-held-in-sea-storage-hits-new-record-at-160-million-bbls-sources-idUKKBN21Z2A2 https://uk.reuters.com/article/us-global-oil-tankers-storage...
- ccozan 6y agoand the prices of storage as well.[1] ( Article quite old, but argument stays ) [1] https://www.reuters.com/article/us-global-oil-shipping/oil-tanker-rates-double-as-demand-for-storage-and-transport-resurfaces-idUSKBN21H15Q https://www.reuters.com/article/us-global-oil-shipping/oil-t...
- tartoran 6y agoSure but those are limited as well, and their capacity would probably run out. Those tankers would have to basically be docked and not be able to transport anymore. And then?
- dredmorbius 6y agoThe point is that so long as there's weak demand, the oil's going nowhere, and the ships would be sitting regardless. Though otherwise agreed: capacity is rapidly being saturated, and this isn't much of a win for shipping companies either.
- dredmorbius 6y agoAnd the existing fleet is rapidly being saturated. Building new tankers to serve as floating storage is economically unfeasable (negative ROI), though repurposing idle fleet capacity is rational as a means to recover some variable costs. The activity doesn't make profit, rather, it slows losses.
- sz4kerto 6y agoNature has figured it out. (I.e.: the simplest way of storing oil is to not extract it.)
- nradov 6y agoOnce an oil well is producing the operators can't necessarily just turn it off. If they do cap it that can impair future production.
- coldpie 6y ago> If they do cap it that can impair future production. Great! Let's get started.
- Maximus9000 6y agoFor some producers that's easier said than done. You can't just shut the operation down and then start it up again.
- nogabebop23 6y agoAnd there lies the rub - oil in-place is often in remote, hard-to-get areas; the margin will be made in having it ready to go when price warrants, not ready to extract
- orev 6y agoMaybe we can store it in large underground caverns (or maybe porous basins) and then pump it up to the surface only when we need it. We would probably want to coordinate with other people also doing pumping in their region, as not to end up with too much on the surface that we can’t use and then have nowhere to put it.
- asah 6y agoI assume you're making a sarcastic reference to the Strategic Petroleum Reserve. https://en.wikipedia.org/wiki/Strategic_Petroleum_Reserve_(United_States) https://en.wikipedia.org/wiki/Strategic_Petroleum_Reserve_(U...
- sambroner 6y agoI believe (s)he's making a sarcastic reference to oil in the ground.
- dkn 6y agoIs this the same thing as... not pumping it?
- kube-system 6y agoThe other people pumping are coordinating... against you, not with you.
- deleted 6y ago[deleted]
- TenJack 6y agoYou can create underground caverns in salt using water drilling. That's how the US stores its oil reserves.
- deleted 6y ago[deleted]
- pjc50 6y agoThe world produces approximately thirteen billion liters of oil (83m "barrels") a day. A billion liters is a cube a hundred meters on a side. Given that it needs to be stored in a tank and not just pooled in a huge lake, that's a bit of a problem. https://en.wikipedia.org/wiki/TI-class_supertanker https://en.wikipedia.org/wiki/TI-class_supertanker store about three million barrels.
- lazyjones 6y agoOr, we could just burn it, heat up the planet and not need to heat during the coming winter.
- sixQuarks 6y agoEmpty Oil tankers. They are charging over $300,000 per day for storage now. Some think this is the greatest trading opportunity in over a decade. https://adventuresincapitalism.com/2020/03/19/crude-contango/ https://adventuresincapitalism.com/2020/03/19/crude-contango...