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Seeing that the OPEC production cuts don't go into effect until the 1st, what would actually happen to this oil if nobody could legally buy it due to lack of st
by whytai 6y ago
Seeing that the OPEC production cuts don't go into effect until the 1st, what would actually happen to this oil if nobody could legally buy it due to lack of storage?
- asdfasgasdgasdg 6y agoPhysically? Eventually all the containers would be full, then the pipelines would back up, then the ships would be full and lack any place to unload, then the loading terminals at oil producing countries would be full, then their pipelines would be full, then finally any buffer at the well head would be full, and ultimately the well owners would be forced to stop pumping or else place the oil somewhere other than into the system (on the ground or into the sky by burning it).
- elliekelly 6y agoAny idea how quickly a well can “stop pumping”? Is it as easy as the push of a button (I kind of doubt it) or as complex as needing a week or longer?
- ars 6y agoDepends on the kind of well. Most of them can stop and start easily enough. But some, once you stop them, they won't start back up again, and will be abandoned. (The oil will harden, and there's no way to heat it back up.)
- loopz 6y agoTrump made it legal to dump it anywhere.