Zero Hedge
All posts from Zero Hedge
Zero Hedge in Zero Hedge,

America's New Crisis - Peak Oil Storage

Domestic energy production continues to increase despite the anticipated shale shakeout.  The precipitous decline in gasoline prices were welcomed by most but government exise tax revenue was in jeopardy.

In order to stop the decline in gas prices there has been a national effort to store oil rather than put it on the market.  This has been successful for a few weeks and the price of gasoline has recovered slightly because crude is being withheld from the market.

Unfortunately for America most of our oil storage is now full and we will soon have no place left to store the oil we are producing.  In a few more weeks additional crude will have to seek the market with the associated drop in prices and "bad things" for the economy.  We are rapidly approaching "Peak Oil Storage".

We must marshal America's science and engineering talent in a manhattan style project to overcome "Peak Oil Storage".  If we do not attack this new crisis we will see government revenue implode at the same time individual disposable income increases.  This is, quite frankly, just too dangerous to allow.

I therefore propose the "Laurentian National Oil Storage Facility".  We can pump all the water out of Lake Erie and utilize the basin to keep even more crude production off of the market.  This would significantly defer the onset of "Peak Oil Storage".

Fully 80% or more of the great lakes would be left intact for future generations to enjoy (h/t snacky).

In California many former large lakes are on the verge of extinction.  Rather than squander scarce resources in a fruitless attempt to save them would it not make more sense to utilize these locations for oil storage as well?

If we do not act now oil prices, gasoline prices, and government exise tax revenues will continue to plummet.  The results will be nothing short of catastrophic.

Happy April 1'st!
Mark Hittinger