Overcoming the Supply Glut
What do you do when oil is practically free?
You store as much of it as you can, and hope that at some point you can sell it for more.
Unfortunately, everyone has the exact same idea, and as a result there is a historic glut that is filling up the world’s storage capacity both on land and at sea:
In March, it was estimated that 76% of the world’s available oil storage capacity was already full.
A record-setting 160 million barrels of oil is being stored on tankers at sea, according to Reuters.
The cost of renting an oil supertanker has gone through the roof. It’s jumped from $20,000 per day to $200,000-$300,000 per day, according to Rystad Energy.
It remains to be seen how fast the transportation industry will recover in a post-COVID-19 world, but for now the outlook for all oil producers is grim. The continued fallout will not only affect industry, but also the countries that rely on oil exports to balance their budgets.
HUGE image thingie LOL
http://www.zerohedge.com/energy/visualizing-how-oil-prices-went-sub-zero-explaining-covid-19-oil-crash?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29
Realist - Everybody in America is soft, and hates conflict. The cure for this, both in politics and social life, is the same -- hardihood. Give them raw truth.
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