What did stop everyone from making MASSIVE additional reserves when the crude was worth literally nothing 2 years ago? Is the storage cost prohibitedly high even with scaling up?
Search your feelings. You know the answer to your question.
Efforts were made to add 77 million barrels to the reserve, but the watermelons (green on the outside, red on the inside) response to those efforts was predictable
The storage is in large natural underground caverns which have unique properties such that the oil does not leak. I believe it can be scaled up to a degree but it couldn't be done on short notice. Plus the system is set up to slowly add over time instead of trying to "time the market"
but yes, the US should have stepped in and bought an enormous quantity during the COVID crash and then just used temporary storage facilities until it could build out some more expansion.
What did stop everyone from making MASSIVE additional reserves when the crude was worth literally nothing 2 years ago? Is the storage cost prohibitedly high even with scaling up?
Search your feelings. You know the answer to your question.
Efforts were made to add 77 million barrels to the reserve, but the watermelons (green on the outside, red on the inside) response to those efforts was predictable
The storage is in large natural underground caverns which have unique properties such that the oil does not leak. I believe it can be scaled up to a degree but it couldn't be done on short notice. Plus the system is set up to slowly add over time instead of trying to "time the market"
but yes, the US should have stepped in and bought an enormous quantity during the COVID crash and then just used temporary storage facilities until it could build out some more expansion.