Tuesday, December 16, 2008

A Shock to Suppliers

Crude is difficult to find and expensive to produce. Modern deep water infrastructure (platforms and gathering systems) cost billions of dollars. So the downturn has been vicious for those companies with projects on the table. Here is a good NY Times article on the subject.
"So much surplus oil is sloshing around the world right now that some companies, including Shell, are using oil tankers for storage."

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