Canada Finds Solution To Cheat Oil Market

[Economy 52,861]

http://www.theglobeandmail.com/report-on-business/industry-news/energy-and-resources/record-crude-volumes-pipeline-delays-lead-to-boom-in-oil-storage/article23962611/?service=mobile

 

Canada's Oil Sands have by far the longest cycles of any type of oil extraction on Earth (conventional, shale, or deep sea drilling.) It takes many years and many Billions of Dollars to set up a new Oil Sands project, but up to 50 years to depleate an oil field 

 

The issue with this is, during boom times its slow to grow new production, but during busts you have new projects already under construction you cant cancel so new low profit production keeps coming in.

 

Companies have instead decided to create mega storage hub projects. Canada will now store massive amounts of oil when prices are low, and sell more when prices are high. Since production in Canada is hard to change quickly like with shale, instead Canada will change sales as needed using storage technique