The US is running out of space to store crude oil
Oil production in the country is at an all-time high, even though prices crashed from $107 a barrel in June 2014 to only $30 a barrel at present.
With nearly 503 million barrels of commercial crude oil stockpiled and more being pumped, the United States is running out of place to store it all, the Energy Information Administration said on Wednesday. According to analysts from Goldman Sachs, oil stockpiles are so high that storage facilities are nearly overflowing, causing serious logistical constraints.
Cushing, Oklahoma, the delivery point for most of the oil produced in the country, currently has 64 million barrels of oil, which is 87% of the facility’s total storage capacity, according to the EIA. Crude will have to be diverted elsewhere if Cushing, which has had to update its storage capacity in recent years, runs out of room to stockpile oil. US oil production is at an all-time high, even though oil prices crashed from $107 a barrel in June 2014 to only $30 a barrel at present.
The International Energy Agency said recently that the world is “drowning” in oil, with inventories worldwide remaining high. It expects an oversupply of 1.5 million barrels per day in the first half of 2016.