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ethbro

Physics would argue otherwise.

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Oil tankers are being used for storage:

https://amp.theguardian.com/business/2020/apr/19/supertanker...

Floating storage levels for crude are already double what they were a week ago [0]

[0] https://uk.reuters.com/article/us-global-oil-tankers-storage...

and the prices of storage as well.[1] ( Article quite old, but argument stays )

[1] https://www.reuters.com/article/us-global-oil-shipping/oil-t...

Sure but those are limited as well, and their capacity would probably run out. Those tankers would have to basically be docked and not be able to transport anymore. And then?

The point is that so long as there's weak demand, the oil's going nowhere, and the ships would be sitting regardless.

Though otherwise agreed: capacity is rapidly being saturated, and this isn't much of a win for shipping companies either.

And the existing fleet is rapidly being saturated. Building new tankers to serve as floating storage is economically unfeasable (negative ROI), though repurposing idle fleet capacity is rational as a means to recover some variable costs. The activity doesn't make profit, rather, it slows losses.

And what would that argument be?

I think gas goes bad after some months, not sure if crude degrades as well.

It's been buried for 100 million years, I don't think a few months is going to do anything.

Gasoline and other petroleum derivatives are not a stable as their underlying source. However consumer gas will last a few years with proper care and storage, the real issue will be when appropriate storage runs out.

Parent specifically noted crude

So what happens if you have gas in your car and don't drive it for 4 months???

There's a decent chance your car won't start. The gasoline in the tank is probably fine, but the gasoline in the fuel lines and so forth has likely turned in useless gunk.

Probably buried in a very different environment?

The knock-on price is to refined gas, but when we talk price/storage of oil that's not ready to put in your car gasoline.

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