An April 6, 2015 article on ttnews(dot)com explains that gasoline will be made from crude oil at a “record pace” this year following the largest glut in 80+ years. Output by refiners is increasing “to meet consumer demand” and apparently over 100,000 barrels of capacity has been added since the summer of 2014.
The expectation is not that a surplus will sit unused. Rather, it will be used. Still, with storage capacities at many companies skyrocketing, prices are trending downward. This means excess crude could be valued less.
The article goes on to explain that drilling techniques like “horizontal drilling and hydraulic fracturing” helped tap what were once “inaccessible oil.” This helps explain a United States increase in crude oil output of 71% in the past five years. Could prices actually tumble? What will the net effect be? Will crude oil really get ‘chewed up’ quickly? Original Source: http://bit.ly/1HQuo4h
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