Something bizarre is happening off the coast of Galveston, Texas. Were you to look toward the sea in the Texas port town, you’d be subject to a oceanic traffic jam of epic proportions. Ships carrying oil have gathered along the coast in the Gulf of Mexico in such great quantities that ships approaching the port have been asked to move toward the town slowly in an attempt to ease the burden.
This phenomenon is directly tied to the huge amounts of oil stored internationally and in floating container ships across the world. As oil prices fall, stockpiles of the resource are going through the roof, and governments and companies don’t have anywhere else to store it.
This could cause the price of oil to fall catastrophically further, as supply far exceeds demand for the time being.
To see the full report on this strange occurrence, continue reading on the next page:
Something is going on out there
As the price drops, stockpiles build up? What sense does that make? As prices fall, people buy more. What the deal is, is that the big oil companies are limiting the amount of oil they sell while profit margins are at a low point. Greed.
The ships in the photo are EMPTY. Look how much anti-fouling paint is exposed. If they were filled with oil you would never see it. Jesus, they are waiting in the roads because there is no cargo for them. No one is shipping or drilling in this market.
It’s pretty much a fact that at no time in history has there even been a shortage of oil unless it was created by man for profit. This is the perfect example.
This has to do with an end of year inventory tax. It happens every year in most businesses. As long as the oil is in the tanker, it is not the company’s “American” asset.
told ya !!!!!!!!!!!!!!!!!
Seen this many times. Stack ups at the sea buoy can be caused by weather, Houston Ship channel does get closed at times by fog or accidents. Using a stock file photo of empty tankers saying that oil is being stock piled is kinda silly.
oh, but the locals could be pumping and being competitive. but they choose to shut down rigs until they deem fit. its more a money game
This is your government at work !
U.S. oil consumption is 20 million barrels a day; 28 million doesn’t sound like a lot in that context.