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To: thackney
Investment in storage capacity is stimulated by fluctuations in price, correct?

And in the expectation of continued large fluctuations?

17 posted on 03/23/2015 8:36:20 AM PDT by Steely Tom (Vote GOP for A Slower Handbasket)
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To: Steely Tom
Investment in storage capacity is stimulated by fluctuations in price, correct?

I think that is too general a statement to be correct. Big drops in storage levels is a fluctuation.

I see storage capacity gets built, when the working spare capacity gets low enough to drive up the price to store oil. I'm not sure there is expectations that this condition is going to last long enough to pay off. I see greater pressure on pipeline and rail capacity to get built. There is price pressure to get inland produced oil to compete more with coastal refineries and further reduce imports of crude oil.

18 posted on 03/23/2015 8:40:38 AM PDT by thackney (life is fragile, handle with prayer)
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