Oil Industry May Need To Return To Barrels!

[JimofPennsylvan]

The bad news remains for the oil industry, today's closing prices on the New York Mercantile Exchange was $9.06/ barrel for May delivery and $13.10/barrel for June delivery. It is very sad for an industry that creates a lot of middle class jobs in America and holds a place of significant wealth for the American people to be so badly on the ropes survival of a significant part of the industry is in jeopardy. The crux of the problem has been well reported that supply is way higher than demand with large parts of the world's economy shut down over the corona virus and there is no place to store the over supply. This may sound like a simpleton idea but why doesn't the oil producing industry and the refinery industry do what they did early in the prior century start storing oil in steel barrels that way you could then practically store the oil almost anywhere. The real utility with this idea is that steel barrels could be quickly made it basically involves welding a steel cap to each end of a steel tube, one cap needs to have a threaded circular steel adapter so oil could be loaded in the barrel and a cap screwed on all straight forward manufacturing that could be done immediately. Some industries still do use steel barrels to transport chemicals so obviously there is a steel barrel manufacturing industry maybe they have an inventory which could be tapped immediately. Of course cost would be a concern if the cost of the barrels are too high it may not make economic sense to explore this route but maybe the oil and refinery industries could work out a deal with the barrel manufacturing industry where they would buy the barrels and when the petroleum industry is finished using the barrels the barrel manufacturing industry would buy them back at fifty percent of the cost the deal would be such that the barrel manufacturers wouldn't start getting barrels back until 2024 and only get so many back a year the barrel industry could recycle and resell them instead of one circular adapter at the top of the barrel have three so that the barrels could be readily cleaned by just pumping super heated water in one hole and oil residue would come out the other two holes. Of course this is no total solution because oil supply is so enormous but many countries oil storage capacity is hitting their limit If the barrel manufacturing industry made a million two-hundred and fifty thousand barrels a month by the latter part of next year the petroleum industry could have freed up 20 million barrels of current storage capacity that would be a helpful cushion to stop oil price market drops!

 

[hadit]

The bad news remains for the oil industry, today's closing prices on the New York Mercantile Exchange was $9.06/ barrel for May delivery and $13.10/barrel for June delivery. It is very sad for an industry that creates a lot of middle class jobs in America and holds a place of significant wealth for the American people to be so badly on the ropes survival of a significant part of the industry is in jeopardy. The crux of the problem has been well reported that supply is way higher than demand with large parts of the world's economy shut down over the corona virus and there is no place to store the over supply. This may sound like a simpleton idea but why doesn't the oil producing industry and the refinery industry do what they did early in the prior century start storing oil in steel barrels that way you could then practically store the oil almost anywhere. The real utility with this idea is that steel barrels could be quickly made it basically involves welding a steel cap to each end of a steel tube, one cap needs to have a threaded circular steel adapter so oil could be loaded in the barrel and a cap screwed on all straight forward manufacturing that could be done immediately. Some industries still do use steel barrels to transport chemicals so obviously there is a steel barrel manufacturing industry maybe they have an inventory which could be tapped immediately. Of course cost would be a concern if the cost of the barrels are too high it may not make economic sense to explore this route but maybe the oil and refinery industries could work out a deal with the barrel manufacturing industry where they would buy the barrels and when the petroleum industry is finished using the barrels the barrel manufacturing industry would buy them back at fifty percent of the cost the deal would be such that the barrel manufacturers wouldn't start getting barrels back until 2024 and only get so many back a year the barrel industry could recycle and resell them instead of one circular adapter at the top of the barrel have three so that the barrels could be readily cleaned by just pumping super heated water in one hole and oil residue would come out the other two holes. Of course this is no total solution because oil supply is so enormous but many countries oil storage capacity is hitting their limit If the barrel manufacturing industry made a million two-hundred and fifty thousand barrels a month by the latter part of next year the petroleum industry could have freed up 20 million barrels of current storage capacity that would be a helpful cushion to stop oil price market drops!

Or maybe they just stop pumping for a while?

 

[okfine]

The bad news remains for the oil industry, today's closing prices on the New York Mercantile Exchange was $9.06/ barrel for May delivery and $13.10/barrel for June delivery. It is very sad for an industry that creates a lot of middle class jobs in America and holds a place of significant wealth for the American people to be so badly on the ropes survival of a significant part of the industry is in jeopardy. The crux of the problem has been well reported that supply is way higher than demand with large parts of the world's economy shut down over the corona virus and there is no place to store the over supply. This may sound like a simpleton idea but why doesn't the oil producing industry and the refinery industry do what they did early in the prior century start storing oil in steel barrels that way you could then practically store the oil almost anywhere. The real utility with this idea is that steel barrels could be quickly made it basically involves welding a steel cap to each end of a steel tube, one cap needs to have a threaded circular steel adapter so oil could be loaded in the barrel and a cap screwed on all straight forward manufacturing that could be done immediately. Some industries still do use steel barrels to transport chemicals so obviously there is a steel barrel manufacturing industry maybe they have an inventory which could be tapped immediately. Of course cost would be a concern if the cost of the barrels are too high it may not make economic sense to explore this route but maybe the oil and refinery industries could work out a deal with the barrel manufacturing industry where they would buy the barrels and when the petroleum industry is finished using the barrels the barrel manufacturing industry would buy them back at fifty percent of the cost the deal would be such that the barrel manufacturers wouldn't start getting barrels back until 2024 and only get so many back a year the barrel industry could recycle and resell them instead of one circular adapter at the top of the barrel have three so that the barrels could be readily cleaned by just pumping super heated water in one hole and oil residue would come out the other two holes. Of course this is no total solution because oil supply is so enormous but many countries oil storage capacity is hitting their limit If the barrel manufacturing industry made a million two-hundred and fifty thousand barrels a month by the latter part of next year the petroleum industry could have freed up 20 million barrels of current storage capacity that would be a helpful cushion to stop oil price market drops!

Or maybe they just stop pumping for a while?

I drive by oilfields everyday. The old Seaside gas plant on the Rincon (ConocoPhilipps now) was shuttered months ago and has graffiti all over the place. Haven't seen a pump working in weeks. If working in the patch was a middle class pay type job, many of my friends would still be working there.

 

[HereWeGoAgain]

The bad news remains for the oil industry, today's closing prices on the New York Mercantile Exchange was $9.06/ barrel for May delivery and $13.10/barrel for June delivery. It is very sad for an industry that creates a lot of middle class jobs in America and holds a place of significant wealth for the American people to be so badly on the ropes survival of a significant part of the industry is in jeopardy. The crux of the problem has been well reported that supply is way higher than demand with large parts of the world's economy shut down over the corona virus and there is no place to store the over supply. This may sound like a simpleton idea but why doesn't the oil producing industry and the refinery industry do what they did early in the prior century start storing oil in steel barrels that way you could then practically store the oil almost anywhere. The real utility with this idea is that steel barrels could be quickly made it basically involves welding a steel cap to each end of a steel tube, one cap needs to have a threaded circular steel adapter so oil could be loaded in the barrel and a cap screwed on all straight forward manufacturing that could be done immediately. Some industries still do use steel barrels to transport chemicals so obviously there is a steel barrel manufacturing industry maybe they have an inventory which could be tapped immediately. Of course cost would be a concern if the cost of the barrels are too high it may not make economic sense to explore this route but maybe the oil and refinery industries could work out a deal with the barrel manufacturing industry where they would buy the barrels and when the petroleum industry is finished using the barrels the barrel manufacturing industry would buy them back at fifty percent of the cost the deal would be such that the barrel manufacturers wouldn't start getting barrels back until 2024 and only get so many back a year the barrel industry could recycle and resell them instead of one circular adapter at the top of the barrel have three so that the barrels could be readily cleaned by just pumping super heated water in one hole and oil residue would come out the other two holes. Of course this is no total solution because oil supply is so enormous but many countries oil storage capacity is hitting their limit If the barrel manufacturing industry made a million two-hundred and fifty thousand barrels a month by the latter part of next year the petroleum industry could have freed up 20 million barrels of current storage capacity that would be a helpful cushion to stop oil price market drops!

Or maybe they just stop pumping for a while?

And that helps how?

 

[Admiral Rockwell Tory]

The bad news remains for the oil industry, today's closing prices on the New York Mercantile Exchange was $9.06/ barrel for May delivery and $13.10/barrel for June delivery. It is very sad for an industry that creates a lot of middle class jobs in America and holds a place of significant wealth for the American people to be so badly on the ropes survival of a significant part of the industry is in jeopardy. The crux of the problem has been well reported that supply is way higher than demand with large parts of the world's economy shut down over the corona virus and there is no place to store the over supply. This may sound like a simpleton idea but why doesn't the oil producing industry and the refinery industry do what they did early in the prior century start storing oil in steel barrels that way you could then practically store the oil almost anywhere. The real utility with this idea is that steel barrels could be quickly made it basically involves welding a steel cap to each end of a steel tube, one cap needs to have a threaded circular steel adapter so oil could be loaded in the barrel and a cap screwed on all straight forward manufacturing that could be done immediately. Some industries still do use steel barrels to transport chemicals so obviously there is a steel barrel manufacturing industry maybe they have an inventory which could be tapped immediately. Of course cost would be a concern if the cost of the barrels are too high it may not make economic sense to explore this route but maybe the oil and refinery industries could work out a deal with the barrel manufacturing industry where they would buy the barrels and when the petroleum industry is finished using the barrels the barrel manufacturing industry would buy them back at fifty percent of the cost the deal would be such that the barrel manufacturers wouldn't start getting barrels back until 2024 and only get so many back a year the barrel industry could recycle and resell them instead of one circular adapter at the top of the barrel have three so that the barrels could be readily cleaned by just pumping super heated water in one hole and oil residue would come out the other two holes. Of course this is no total solution because oil supply is so enormous but many countries oil storage capacity is hitting their limit If the barrel manufacturing industry made a million two-hundred and fifty thousand barrels a month by the latter part of next year the petroleum industry could have freed up 20 million barrels of current storage capacity that would be a helpful cushion to stop oil price market drops!

You do realize those barrels you are talking about are 55 gallon drums as opposed to 40 gallons per barrel used in the oil industry.

 

[my2¢]

If John Denver was still with us, they probably could have used his tanks.

 

[Muhammed]

We should be filling the Strategic Petroleum Reserve to capacity.

https://fas.org/sgp/crs/misc/R42460.pdf

SPR Capacity The Energy Policy Act of 2005 (EPAct) required expansion of the SPR to a maximum physical capacity of 1 billion barrels “as expeditiously as practicable.” Advocates for expansion argued that the SPR would need to be larger for the United States to be able to maintain stocks equivalent to 90 days of net imports. DOE evaluated a site in Richton, MS, as a possible location for an additional 160 million barrels of capacity. However, in FY2011, the Obama Administration cancelled SPR expansion plans


Gee, Thanks Obama.

He's been gone for years and he's still fucking over America.

 

[Deplorable Yankee]

American frackers can turn it on and off pretty easily
Of course hard times for them and businessesthat service the entire industry...yes

It's a massive world wide glut

Lower fuel prices do have thier up sides especially with the economy hanging off a cliff