To much oil, no space to store it

[Andy823]

http://www.telegraph.co.uk/finance/newsbysector/energy/5274121/Rising-reserves-of-unused-oil-put-strain-on-storage.html

Rising reserves of unused oil put strain on storage.

Record inventories of crude oil are building up around the world threatening to swamp storage space and belying optimism in the markets about an imminent economic recovery.

Rotterdam, Europe's biggest port, is running out of room for more oil, US reserves are at a 19-year record and tankers are being used as floating storage off Britain's south coast, even though OPEC is reducing production.
"From a commodities point of view, world trade is appalling and the demand is just not there," said Ahmad Abdallah, commodities analyst at Gavekal, the economics consultancy. "All inventories are rising – they are bursting at their seams."

Goldman Sachs estimated last week that global storage capacity could be exhausted by June. Government figures in the US, the world's biggest oil consumer, put reserves at 375m barrels, rising by 4m barrels in one week in April alone.

One estimate said that in addition 100m barrels were currently being stored in tankers at sea across the world – some of these are visible in Lyme Bay off the coast of Dorset and Devon.
Mr Abdallah said official estimates of oil usage for this year had been based on more optimistic assumptions than economic reality.


Now why don't we here this in the U.S.? The article goes on to say that Goldman Sachs estimated that oil would be down to around $45 a barrel by July. Prices for gas just keep going up. It has gone up twice here this week alone and once last week, .05 cents on monday, and today up .10 cents! Last week we were paying $2.49 in my town, today it's up to $2.69! Thats a .20 cent jump! Price of oil today was around $58 a barrel. Demand is way down, and with so much oil out there in storage prices for gas should not be going up according to the old "supply and demand" crap they use on us every time price go through the roof!

Once again price are being manipulated and the people end up paying more than they should for gas!

[taterguy]

1. How much should people pay for gas?

I'd like a number

More importantly, I'd like to know how much the government should subsidize automotive transportation.

[Fovea]

3. $4.50 a gallon

and subsidize public transit with the majority of the revenue.

[crazyjoe]

11. or more realistically, give the majority of the revenue to the banks

[taterguy]

12. Most people who spend a lot of money on gas live in areas where mass transit isn't viable

I don't think they'd appreciate paying an extra couple hundred dollars a month for a service they can't use

[Andy823]

10. Thats a good question

I really don't have an answer, but I think if they are going to use the old "supply and demand" crap when prices go through the roof, it should also be considered when oil prices are low, and adjusted fairly. To many people have to rely on gas to get to work, and many do not have public transportation that the can use when they live in rural areas. I am all for having a "fair" price, but I am against greedy oil companies taking advantage of consumers because they have them "over a barrel" when it comes to fuel for their car. If we all knew there was a set price we could budget for it easier than we can now.

I want to see more renewable sources come into play, and I want to see the U.S. get away from their addiction to oil, but I hate seeing speculators storing it up all over the world after they bought it up at low prices, and trying to make a killing on what they stocked up on when prices go through the roof again. I don't believe that energy, or food should be traded on the open markets!

[taterguy]

13. The only way for there to be a set price is if there was rationing

Oil is a finite resource.

So the obvious question is: How would you determine what the ration would be?

Of course that's purely a hypothetical question since most governments have learned the hard way not to fuck with oil companies.

[JVS]

2. The reason they're storing it is because they don't want to release it to the market at this price.

[ThomWV]

4. The price here has gone up $0.30 a gallon in the last 2 weeks

and Exxon continues to post world-record profits, quarter after quarter.

[Mojorabbit]

5. We should store as much as possible

here and buy it up at this price because when and if things start getting better economically again it will shoot up in price. I am all for a national reserve as we try to transition into an alternative energy country.

[Andy823]

9. Good idea,

However Bush filled the reserves with oil that cost much, much more than it does now. He kept on pumping it in year after year, all the time helping his oil buddies increase their record breaking profits every year he was in office!

[Mike 03]

6. Yes, but everyone knows that the supply, ultimately, IS limited. That is the main

point.

It doesn't matter what the day to day fluctuations are with respect to who has how much in the way of reserves. That's a moot point, because the truth of the matter is we are running out of oil just like one day we will see the identical situation with water.

[safeinOhio]

8. So much for supply and demand

What ever the market will bare is more like it. Don't cha love capitalism, free markets and bull crapola.

[rurallib]

7. Put barriers around Texas and turn it into a giant reserve.

They wanted out of the union anyway.