The US oil industry was in a difficult position: oil has nowhere to go


The oil war, which began after the OPEC + participants could not agree on a reduction in production, hit American oil producers very quickly.


The overcrowded transportation infrastructure in the United States has forced pipeline operators to turn to oil companies to reduce production.

This became known from the record made on the social network Twitter authorized by the Texas Railway Commission Rayan Sitton:

Yesterday it was said that some Texas producers are beginning to receive letters from oil pipeline operators asking to reduce production due to overcrowded storage facilities.

According to a Bloomberg report, major US oil pipeline operators, such as American Pipeline LP and Enterprise Products Partners LP, sent out letters demanding that before they pumped the raw materials, customers proved that they had a buyer or a place to unload it.

The situation has become so critical that individual oil producers are forced to pay extra to customers for the export of oil.

Analyst at ESAI Energy consulting company Elizabeth Murphy predicts that oil refineries may soon stop, and then a drop in demand will force many US companies to “sell” oil at a surcharge directly from the wells.

Recall that the Department of Energy was not able to obtain Congressional approval for the acquisition of 77 million tons of raw materials in the Strategic Oil Reserve.
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  1. albor.ru Offline
    albor.ru (Alexander) 30 March 2020 10: 26
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    That's wonderful, how ... the USA called Russia a gas station, but at the same time it’s getting out of her skin to become it!
    1. 123 Online
      123 (123) 30 March 2020 11: 21
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      That's wonderful, how ... the USA called Russia a gas station, but at the same time it’s getting out of her skin to become it!

      And the funny thing is, they do not really succeed. laughing But for some reason they do not stop .....
      Maybe you should take a closer look at those who insist on the need to close their "gas station"?
  2. Sergey Latyshev Offline
    Sergey Latyshev (Serge) 30 March 2020 10: 30
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    What a nightmare!
    Again, everyone is looking at the USA, now there’s nowhere to put the oil ... The rest have all got hurt, I hope (((?
    And then - USD 80,31 + 1,49.
    1. Bakht Online
      Bakht (Bakhtiyar) 30 March 2020 11: 13
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      The rest is just fine

      1. Bakht Online
        Bakht (Bakhtiyar) 30 March 2020 11: 15
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        And this is on American exchanges.

        1. Sergey Latyshev Offline
          Sergey Latyshev (Serge) 30 March 2020 12: 20
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          Thanks! So, not only "the United States was in a difficult position."
          And in Russia there is infa?
          Honestly, for me this is not the point, but it's nice when someone from the side confirms your conclusions.
    2. 123 Online
      123 (123) 30 March 2020 11: 17
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      Are you rushing with the dollar again? laughing Already, hand over your 5 bucks to the exchanger and calm down. winked
      Do not recall what you said yesterday about the absence in the US of problems with the storage of oil? winked The bottle option is increasingly real. smile
      1. Sergey Latyshev Offline
        Sergey Latyshev (Serge) 30 March 2020 12: 17
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        Alas. Even for the sake of your bottles and your desire to talk. I don’t have 5 bucks. Well, no, that's all.

        And somewhere near an article flashed - the USA Congress did not allow the purchase of 77 million of some oil in reserve.
        So, there are 77 million storage facilities, and there are bottles for you))))
        1. 123 Online
          123 (123) 30 March 2020 12: 36
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          Alas. Even for the sake of your bottles and your desire to talk.
          I don’t have 5 bucks. Well, no, that's all.

          Then stop running around the site with the poster "Ace is gone, the course has dropped." The course is known to all.

          And somewhere near an article flashed - the USA Congress did not allow the purchase of 77 million of some oil in reserve.

          Exactly, somewhere somewhere flashed, is it not worthwhile to delve into the details? Try to divide these 77 million “something there” by the volume of monthly production and figure out how much storage is enough. At the same time, you can see the purchase price and compare it with the cost.
          And only then refuse the bottles. laughing
          1. Sergey Latyshev Offline
            Sergey Latyshev (Serge) 30 March 2020 12: 59
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            1) How impolite you are. Look deeper.
            2) What kind of fan are you to offer unnecessary work to others? USAA scurry around, let them count. Not fools, they can.

            Maybe you just want to talk?
            1. 123 Online
              123 (123) 30 March 2020 14: 32
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              1) How impolite you are. Look deeper.

              Thanks. I will consider for the future. hi

              2) What kind of fan are you to offer unnecessary work to others? USAA scurry around, let them count. Not fools, they can.

              Life will show.

              Maybe you just want to talk?

              I look - and you are not silent.
          2. cmonman Offline
            cmonman (Garik Mokin) 30 March 2020 16: 55
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            Exactly, somewhere somewhere flashed, is it not worthwhile to delve into the details?

            We delve into the details. The price of oil is so low that it shuts down oil production in the United States from a variety of seams in a large amount. Tens of thousands of unemployed and many companies went bankrupt (chapter 11).
            As Lenin said in the movie:

            The revolution, about which the Bolsheviks spoke so long, tediously and giggly, was overthrown!

            In this situation (low oil prices + support of their own), Trump logically decided to buy 77 million barrels in reserve. But $$$ - $ 3 billion is needed for the purchase. And Congress, having recently allocated a $ 3 trillion package to fight the virus, refused Trump additional money to buy his oil. They continue to download for themselves, but to a lesser extent, something else goes on sale, prices, sometimes, in the range of $ 16- $ 22 per barrel, but because oil gives a profit of GDP in the region of 6% -8%, it is not critical.
            1. 123 Online
              123 (123) 30 March 2020 17: 40
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              I think Vladimir Ilyich had a slightly different meaning. laughing What closes part of the enterprises is quite logical, the prime cost of all is different, and the financial ability to "sit out the crisis" too.
              For procurement at the expense of the budget, the information goes differently, according to some unverified information, the price is offered below cost. If Trump was not given money, which, given the epidemic and the "warm" relations with the Democrats, is quite plausible, then the situation becomes even more interesting.
              By the way, if it doesn’t make it difficult, it would be interesting to look at these figures in "local execution", so to speak, to see the news from the fields. Compare with what they write with us.
              1. cmonman Offline
                cmonman (Garik Mokin) 30 March 2020 20: 55
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                If Trump was not given money, which, given the epidemic and the "warm" relations with the Democrats, is quite plausible, then the situation becomes even more interesting.

                I don’t know how interesting it is, but if for free there is an opportunity to add oil to storage, then why not. Not yet given, maybe next. lucky month. Anyway - the storage is in reserve, the reserve, today we live in the extracted oil and the price of gasoline is $ 1.80 - $ 2.00 for 4 liters.

                By the way, if it doesn’t make it difficult, it would be interesting to look at these figures in "local execution", so to speak, to see the news from the fields. Compare with what they write with us.

                The numbers voiced in this article are true. If you want more details, go to Yahoo (Russian) and on the top bar click Business (or Finance). Get a bunch of interesting info.
                If there are specifically questions by industry, I’ll try to find / translate, but unless I dig deep. The weather is good, +17, and from tomorrow a semi-deep quarantine - only for groceries and a pharmacy - otherwise a fine of up to $ 5 or 1 year in prison.
                Latest news:
                On Monday, the US flagship crude oil fell to around $ 10 a barrel, the weakest since late 1998, as demand fell sharply due to the coronavirus pandemic and rapid storage.
                1. 123 Online
                  123 (123) 30 March 2020 23: 08
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                  Thanks for the information.
                  We have heard so far that the fine for 1 time is 15, repeatedly up to 000. But this is only in Moscow, they quarantined them until mid-April. The country is still calmer, quarantine for 150 week, but, I believe, these measures will apply to everyone.
  3. Lieutenant Rzhevsky I 30 March 2020 12: 22
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    I’ve been looking through articles here, I’ve gotten into the troubles of their oil workers, but Mr. Brighton put all the points on i in the comments and reassured them that they’re okay. Yes, and here one gentleman, basing inexplicably on what, is gushing with optimism. I wonder how sideways the ruble exchange rate strengthens the American oil industry. Does she sell oil for rubles?
  4. Alexander Semenov (Alexander Semenov) 30 March 2020 12: 56
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    It's time to sign a new trade agreement with China ... for 5 years.
  5. mor7d Offline
    mor7d (mor7d) 31 March 2020 08: 12
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    The Oil War began after the Russian Federation withdrew from OPEC +, and very quickly and painfully hit Russian oil producers.