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Oil tanks at vital Africa storage hub said to be almost full as excess crude floods the market

  
  Analysis
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The Saldanha Bay storage hub is said to be nearing capacity

Oil

For some context, Saldanha Bay is a vital hub for crude oil storage because of its strategic location in which it allows for transport to demand centers in both Europe and Asia.

According to Bloomberg, the hub boasts about 45 million barrels in capacity but S&P Global’s latest report highlights that it has the capacity of up to 60 million barrels.
Nonetheless, sources familiar with the hub’s operations has told Bloomberg that the site is nearly at capacity – adding that there might be just room for a couple of tanks holding specific crude grades, but it is full otherwise.

This situation has already been forewarned by many oil traders and pipelines over the past few weeks and with Saudi Arabia continuing to flood the market, what we may be left with are a boatload of oil barrels going to be stuck at sea at this point.

The Media Campaign Begins: BP Is Now Too Big To Fail

  
Analysis, Education, LINKS
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As prospects before BP get darker by the day, and the likelihood of bankruptcy grows, the TBTF propaganda begins. Evidence A – Bloomberg headline: “BP Demise Would Threaten U.S. Energy Security, Industry.” Just as the failure of bankrupt banks was supposed to lead to the destruction of capitalism, so the bankruptcy of BP plc is now supposed to lead to the degeneration of US energy independence. And who in their mind would force the Chapter 11 of a systemically important company? Once again, free market capitalism is about to walk out through the back door…

From Bloomberg:

 
 

The company’s demise would be disruptive to the American oil industry, given that BP is the largest oil and gas producer in the U.S., with about 1 million barrels per day of production. Some 7,000 of BP’s 23,000 U.S. employees work in the Houston area, many in a suburban office park just off the Katy Freeway.

From there the company runs its Gulf of Mexico offshore operations with a phalanx of engineers, geologists, and computer scientists. “These are highly compensated people,” says J. Robinson West, chairman of Washington-based consultants PFC Energy. (more…)

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