Something bizarre is happening off the coast of Galveston, Texas. Were you to look toward the sea in the Texas port town, you’d be subject to a oceanic traffic jam of epic proportions. Ships carrying oil have gathered along the coast in the Gulf of Mexico in such great quantities that ships approaching the port have been asked to move toward the town slowly in an attempt to ease the burden.
This phenomenon is directly tied to the huge amounts of oil stored internationally and in floating container ships across the world. As oil prices fall, stockpiles of the resource are going through the roof, and governments and companies don’t have anywhere else to store it.
This could cause the price of oil to fall catastrophically further, as supply far exceeds demand for the time being.
To see the full report on this strange occurrence, continue reading on the next page:
I took this in 2-06. They are always backed up and “staged” for port entry.
I’m a merchant marine working in Texas near Beaumont. I went to Galveston the other day and rode the ferry to get there. I didn’t see anything unusual going on, about 12 ships anchored , most were tankers , some bulk carriers. It’s a nice place to visit if you’ve never been there.
I drive in and out of Houston/Galveston area weekly, travelling along the coastal road of 146 and have not seen any of this. Plus, this stock photo of vessels at anchor is of unladen vessels sitting high in the water. Yes, there are vessels coming to the port of Houston but it is a HUGE container discharge port, one of the top 3 or 4 in the US.
Right now the big thing is that Saudi Arabia is over pumping to boost their cash flows and are attempting to kill off the current US oil industry by pushing prices too low to make it profitable for the frackers to keep producing. It’s already succeeded in killing off oil production in the Gulf Of Mexico…
The USA better wake up the saudis & the far east killing the oil & gas ind. in the USA with Obama”s help………….Ron
i still say it was opecs decision to maintain production at high levels. my thinking is this was done puposely to discouage investers on the pipeline. its all about money and control,and the opec nations have a plan ,and its not for our good.
Any given day there are a dozen plus suiting offshore here, too.
Why aren’t we buying oil at $30 per bbl for the Strategic Oil Reserve? Sounds like a grest price to be storing at and blend down the average cost.
What you need to understand is that those ships are carrying foreign oil,US is not buying foreign oil. Plus US storage is full.
We keep our sailboat in Kemah, Tx. just west of the ship channel and those tankers are dry, it’s also a good place to anchor because the bay is shallow in many areas.