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On time deliveries did not mean the purchase agreements were only made a day or two before they were needed. They simply were trying to push inventory management to their suppliers. They would negotiate up front a minimum number to be purchased for the year and then request when they would be delivered.

But the on time delivery did not work. When a place like Walmart is out of items like Penzoil 10W30 motor oil for a couple of weeks it means it's also not at the warehouse. IOW minimal inventory. You can't do business like that long without a notable loss so Walmart corp learned.

The origional posters idea make sense in many ways.. We do need more regional storage capacity. In SEPT 2008 if memory serves me right several southeast states were literally shut down in a matter of a couple of days due simply from refineries in the Gulf shutting down ahead of a hurricane. That is a correctable and preventable market hazard.

We do need more regional storage capacity. In SEPT 2008 if memory serves me right several southeast states were literally shut down in a matter of a couple of days due simply from refineries in the Gulf shutting down ahead of a hurricane.

So how many days of storage do you think should be kept at each station? How big a hazard would that be at a retail location and how much space would it take?

And you certainly are getting far from the justification the poster was using to shut down all future trading in crude oil.