Cushing, OK Storage Tank Farm

Discussion in 'Oilfield Trucking Forum' started by Chibob, Feb 26, 2015.

  1. Chibob

    Chibob Medium Load Member

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    Jul 23, 2012
    Columbia, Missouri
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    I was watching MSNBC today and at the time WTI was down to $48 bbl. It rebounded later but they started talking about when the Cushing oil tank farm gets full oil will drop to $25 bbl. They also said that they couldn't name names publicly but it was common knowledge that some desperate producers were selling well below market price already.

    I'm just wondering how long it will take to fill that place up. It may be the largest in the world but even it has a max capacity. I like cheap gas as much as the next guy but I don't want to see everybody out of work.
     
    Last edited: Feb 26, 2015
  2. Arky

    Arky Heavy Load Member

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    It is somewhat of an inevitable outcome since the answer to lower prices has been to increase production instead of decrease. Which is a huge surprise for me. It could turn into an even worse scenario than we expected..and with storage maxed out... an even longer term. The only thing that will work in favor of increased prices is the natural production decline of the new wells. It has to come into play at some point.
     
  3. Chibob

    Chibob Medium Load Member

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    Jul 23, 2012
    Columbia, Missouri
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  4. Chibob

    Chibob Medium Load Member

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    Jul 23, 2012
    Columbia, Missouri
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  5. Arky

    Arky Heavy Load Member

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    The ramp up in production to compensate for lower prices...lower prices caused by an over supply... defies the basic laws of supply and demand. There is always a price to pay and a breaking point somewhere down the line. It's sort of like the old line about not messing with mother nature. If this trend continues, the penalties will be severe. Drastic price drops far lower than anyone ever dreamed of might very well come to fruition. Interesting times.
     
    Last edited: Mar 14, 2015
  6. Seattle206

    Seattle206 Light Load Member

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    This Will End Badly!
     
  7. cmbks21

    cmbks21 Medium Load Member

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    It'll be alright when they kick off wwIII, but , let's not hope for that
     
  8. Octrucker

    Octrucker Light Load Member

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    Sep 9, 2013
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    so should some of us oil haulers start working on a plan B..as in look for another job since there will be no where to put the oil?
     
  9. plater1

    plater1 Medium Load Member

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    Jan 24, 2011
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    Last I heard that place held at least 71 million barrels and its not even half full. Maybe when it actually gets near full we might have something to worry about.
     
    Last edited: Mar 15, 2015
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