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:
And if you look real close they are not oil tankers they are grain tankers
You mean we might finally actually break the strangehold that the middle east placed on us in the 70s. If gas drops back to a buck a gallon, yes we would lose jobs in that sector, but that sector has been strangling the rest of our economy for years. Let us use that money to create productive jobs.
Has it occurred to anyone that maybe, just maybe, the oil companies have parked all that oil at sea to avoid the State of Texas end of year tax on crude kept in storage. The same thing the oil companies have been doing for years?
It’s coming from the inovative thinking of brilliant geologists and geophysicists who looked for oil and gas in areas that weren’t thought to be prospective 20 years ago. Areas like the deepwater Wilcox trend in the Gulf of Mexico, and the shale plays in the Texas Eagle Ford and Pennsylvania Marcellus Shale. These plays were so successful that for the first time last year the US could brag about being the largest oil producer in the world. Unfortunately that oil costs more than $60/barrel to produce. The Saudis, seeing their market share decline ratcheted up their production to drive the price down to today’s level of about $36/barrel. The net effect of that move has pushed the US shale producers out of business, and the deepwater Gulf of Mexico drillers have idled most all of their rigs. As soon as OPEC is back in the saddle, what do you think oil prices will be?
There has been a lot of tankers docked in the Los Angeles Long Beach port also.
Everyone of those ships in this picture are empty. There is no doubt about that.
old news
Hopefully we dont have a major hurricane roll through while all of that oil is floating out there.
This is neither truth, nor action… You should all have your computers taken away for two weeks as punishment..
only one problem with this picture the tankers are riding high which means empty.