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by derf_
90 days ago
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I think the timeline is much shorter than that. These oil-producing nations have not invested in a lot of storage, because they usually ship everything out immediately. Once you no longer have anywhere to put the oil, you have to start shutting down production, and it is not easy to restart. We'll be at that point in maybe another week and a half. |
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- storage facilities in the region are limited and in some cases almost full
- mature oil fields need constant water injections to pump out the remaining crude
How likely is it that stopping crude extraction (and therefore the water injections) will permanently damage the oil reservoirs?
And based on that is it possible that countries with this type of mature oil fields would consider simply dumping the excess crude that can't be stored anymore in the desert or in the Gulf of Persia?