The press has been abuzz recently with yet another energy surprise. America is producing so much oil from shale that the nation is, ostensibly, running out of places to store it all.
The total quantity of petroleum stuffed into huge steel tanks right now is at levels not seen for 80 years. Cushing, Oklahoma, for example, is filling up — the now infamous interconnect point for the Keystone pipeline is also the location of one of the nation’s big tank farms. According to Energy Information Administration data, Cushing is 72% full now compared to a 48% level at this time last year.
Who, just a decade ago, would have thought the United States would be seeing “peak storage” instead of “peak oil” so eagerly predicted by the anti-oil lobby?
And who would have thought that the oil price collapse may be setting up conditions for yet another flood of American oil into world markets?
The technology used in the shale fields means that the crude glut is actually even bigger than being widely reported, with deep long-term implications for global oil prices.Read more by clicking here.
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