Something Very Strange Is Taking Place Off The Coast Of Galveston, TX

Tyler Durden's picture

Having exposed the world yesterday to the 2-mile long line of tankers-full'o'crude heading from Iraq to the US, several weeks after reporting that China has run out of oil storage space we can now confirm that the global crude "in transit" glut is becoming gargantuan and is starting to have adverse consequences on the price of oil.

While the crude oil tanker backlog in Houston reaches an almost unprecedented 39 (with combined capacity of 28.4 million barrels), as The FT reports that from China to the Gulf of Mexico, the growing flotilla of stationary supertankers is evidence that the oil price crash may still have further to run, as more than 100m barrels of crude oil and heavy fuels are being held on ships at sea (as the year-long supply glut fills up available storage on land). The storage problems are so severe in fact, that traders asking ships to go slow, and that is where we see something very strange occurring off the coast near Galveston, TX.

FT reports that "the amount of oil at sea is at least double the levels of earlier this year and is equivalent to more than a day of global oil supply. The numbers of vessels has been compiled by the Financial Times from satellite tracking data and industry sources."
The storage glut is unprecedented:
Off Indonesia, Malaysia and Singapore, Asia’s main oil hub, around 35m barrels of crude and shipping fuel are being stored on 14 VLCCs.
“A lot of the storage off Singapore is fuel oil as the contango is stronger,” said Petromatrix analyst Olivier Jakob. Fuel oil is mainly used in shipping and power generation.
Off China, which is on course to overtake the US as the world’s largest crude importer, five heavily laden VLCCs — each capable of carrying more than 2m barrels of oil — are parked near the ports of Qingdao, Dalian and Tianjin.
In Europe, a number of smaller tankers are facing short-term delays at Rotterdam and in the North Sea, where output is near a two-year high. In the Mediterranean a VLCC has been parked off Malta since September.
On the US Gulf Coast, tankers carrying around 20m barrels of oil are waiting to unload, Reuters reported. Crude inventories on the US Gulf Coast are at record levels.
A further 8m barrels of oil are being held off the UAE, while Iran — awaiting the end of sanctions to ramp up exports — has almost 40m barrels of fuel on its fleet of supertankers near the Strait of Hormuz. Much of this is believed to be condensate, a type of ultralight oil.
And unlike the last oil price collapse during the financial crisis only half of the oil held on the water has been put there specifically by traders looking to cash in by storing the fuel until prices recover. Instead, sky-high supertanker rates have prevented them from putting more oil into so-called floating storage, shutting off one of the safety valves that could prevent oil prices from falling further.
A widening oil market structure known as contango — where future prices are higher than spot prices — could make floating storage possible.
The difference between Brent for delivery in six months’ time and now rose to $4.50 last week, up from $1.50 in May. Traders estimate it may need to reach $6 to make sea storage viable.
JBC Energy, a consultancy, said in many regions onshore oil storage is approaching capacity, arguing oil prices may have to fall to allow more to be stored profitably at sea.
“Onshore storage is not quite full but it is at historically high levels globally,” said David Wech, managing director of JBC Energy.
“As we move closer to capacity that is creating more infrastructure hiccups and delays in the oil market, leading to more oil being backed out on to the water.”
Patrick Rodgers, the chief executive of Euronav, one of the world’s biggest listed tanker companies, said oil glut was so severe traders were asking ships to go slow to help them manage storage levels.
“We are being kept at relatively low speeds. The owners of the oil are not in a hurry to get their cargoes. They are managing their storage capacity by keeping ships at a certain speed.”
As a result of all this, something very unusual going on off the coast of Galveston, where more than 39 crude tankers w/ combined cargo capacity of 28.4 million bbls wait near Galveston (Galveston is area where tankers can anchor before taking cargoes to refineries at Houston and other nearby plants), vessel tracking data compiled by Bloomberg show, which compares w/ 30 vessels, 21 million bbls of capacity in May. Vessels wait avg of 5 days, compared w/ 3 days May.

As AP puts it, "a traffic jam of oil tankers is the latest sign of an unyielding global supply glut."

More than 50 commercial vessels were anchored outside ports in the Houston area at the end of last week, of which 41 were tankers, according to Houston Pilots, an organization that assists in navigation of larger vessels. Normally, there are 30 to 40 vessels, of which two-thirds are tankers, according to the group.
Although the channel has been shut intermittently in recent weeks because of fog or flooding, oil traders pointed to everything from capacity constraints to a lack of buyers.
“It appears that the glut of supply in the global market is only getting worse,” said Matt Smith, director of commodity research at ClipperData. Several traders said some ships might have arrived without a buyer, which can be hard to find as ample supply and end-of-year taxes push refiners to draw down inventories.
And here, courtesy of MarineTraffic is the interactive snapshot (readers can recreate it here):


All of which explains why this is happening:

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One And Only's picture

Remember peak oil from a couple years ago? 

Good times.

gladius17's picture
gladius17 (not verified) One And Only Nov 12, 2015 10:49 AM

We're at peak. Oil is running out. Normally Saudi Arabia et al would reduce their pumping to get as much money per barrel as they could. But these aren't normal times, are they? Remember last year when Kerry visited Saudi and soon thereafter they started pumping like crazy? There's a good reason they're pumping so much right now: to keep the price artificially low, so the American economy does not collapse, as it otherwise would have were a) the price of oil not so ridiculously cheap, b) the weather weren't so ridiculously good (see: HAARP, Chemtrails, etc), c) and other manipulations that are occurring.

VinceFostersGhost's picture



Nobody move....we're at peak storage here.

Deathrips's picture

WTI 20s on deck.

They are going to kill prices buy it all up low....and ride it into USD history.

Same goes for every other useful resource. Its a looting.


Sudden Debt's picture

Yep, cheap energy is key.

To bad that governments worldwide now rely on all that extra tax revenue to fund their crap 

Oil may be cheap but that doesn't mean the consumer profits from it.


They always seem to know what to do to fix the economy but they have no clue that it's all interconnected.

It's like those movies where some kids find a time machine and try to fix their future.

And every time they "fix" something, something worse happens because of it.


I think they're getting their inspiration for those movies from our political populist friends.

El Vaquero's picture

Their goals are impossible to reach, but they're going to keep on trying anyway.  In their minds, the status quo MUST continue.  Since that won't happen, they have resorted to ever increasing amounts of fraud and manipulation. 

Deathrips's picture

Fuck it they can print the tax revenues. The oil not so much. You are seeing a systematic looting of a country. It happens over and over again. For the future of america see Germany 1920-1945.......



hedgeless_horseman's picture



No tip of the hat, Tyler?  What the fuck?

Wed, 11/11/2015 - 11:34 | 6777464 hedgeless_horseman

You should see the long line of tankers backed up off Galveston, waiting to get into the the Houston refineries.  Last weekend, at night, they looked like a lighted bridge stretching out to the horizon.

gladius17's picture

It appears that a number of people don't believe in my explanation about the manipulation of the weather. Well it's true. Ready to descend into the rabbit hole?

Remember all that great weather this summer, in the eastern half of the country, along with the drought in the west? Not an accident. The western half of the country has been written off for WW3 because it's undefendable. The eastern half, on the other hand, is where all the agriculture is. And it sure has been a great year for the farmers, hasn't it?

The jet stream was redirected this summer up into Canada, swooping south again east of the Rockies, where it gave us one of the mildest and best summers in recent memory. No, I don't know exactly how they do it. HAARP? I don't know the science behind it. But it's being done for sure.

Now in the fall the situation has reversed. The jet stream was redirected down into Mexico, picking up lots of warm air and bringing it north, once again giving the eastern half of the country (where most of the population is) amazingly warm weather when they should have already been freezing their asses off. Here in Alabama it's shorts and t-shirt weather. Even up north in the Keweenaw peninsula, at the northernmost part of Michigan's Upper Peninsula, it's been in the 50/60s (also t-shirt weather for those Yoopers) when by all rights they should have been buried in snow already.

Pop quiz: when do most economic collapses occur? A: In late October/early November. Why this time frame? Because that's when cold weather hits. There's just something about the onset of cold weather that triggers something primal in us. Almost like the cold of reality strips away our illusions. And when the illusions disappear, panic comes. We are buoyed by our illusions all year round, and as long as it's warm and sunny we can keep playing our little games, but when the cold hits, for many of us the future starts to look a lot less certain. This is the formula for an economic crash.

Back on the topic of agriculture: we're going to need a few good crop years before WW3, aren't we, so the government and everyone else can stockpile food, right? This year is the best year to be a farmer in decades. My cannabis crop certainly benefited from the amazing weather.

The government is manipulating the weather. You can take that to the bank and cash it.

zerotohero's picture

you definitely need to put down the bong

cossack55's picture

BTW  I see the BDI is 71 points from all time low.  Fuck em'

Deathrips's picture



THis fuckers smoking a crack pipe..and with an iq in the low 70s thats not a good thing.



cheka's picture

some dupes never wake up

what is the purpose of a cartel?

to take a plentiful item and create artificial scarcity

that's EXACTLY what nyc.opec have been doing since kissinger was sent to set it up

true scarcity has no need for a cartel

Poundsand's picture

We need a score card for wrong prognostications and then just tell the guys who are wrong over and over again to just shut the hell up and wave their past in their faces.  Peak oil?  Wasn't that supposed to happen in '95?  What about peak food production?  Global warming? Rising sea levels?  Loss of ice at the poles?

Unfortunately, I was holding out for peak government but we apparently haven't gotten there yet either.

Save_America1st's picture

you want to see tanker traffic??  Use that site and slide on over to the Med Sea.  It's packed w/ ships everywhere you look.

Deathrips's picture

Geoengineering is real see Dane Wiggington. See the geneva convention forbidding weather weapons in the 60s.

See this:


There are infinate resourses and infinate promises from liars aka moneychangers, this said we will see peak resources in the future but this is a downleg of accumulation by the elite. THey will be long when the wells running dry where they can name the price in human lives.



Captain Debtcrash's picture
Captain Debtcrash (not verified) Deathrips Nov 12, 2015 2:41 PM

If you actually checked the site, all of these ships are product/chemical tankers.  They are not VLCC's carrying crude thus have no bearing on crude supply or crude storage.  Just pointing out that pointing out that these ships are at anchor don't say anything about the oil market.  Sorry guys.

The Pope's picture

Actually, what I checked were the tankers that were lined up in orbit around Saturn's moon TITAN that were 'filling up' from the drilling down below under the moons surface on account of the abiotic dinosaurs that once roamed there.


Lo & behold ~ same thing is happening there.


(& it all likely has to do with global warming on account of the dihydrogen monoxide crisis)


I heard it all from O'Bama's caddy.

knukles's picture

The US is gonna sell off the SPR which will help things out

CapnJackDaniel's picture


Government needs you to pay taxes's picture

Even if the tankers are 100% product, it still demonstrates an unusual supply/demand imbalance.  This is why ZIRP/NIRP/SLURP isnt gonna fix our global economic challenges.  The longer we SLURP, the deeper the deflation resulting from the misallocation of investment capital.  Also, the derivative misallocations become larger.

Back to the NRG industry and why the product tankers are a meaningful signal: you hold crude as long as you can, since there is negligible product decay @ the crude level.  You CANT hold lighter refined products very long without the 'lighter ends' evaporating, lowering the quality of the fuel.  This back up of product tankers signals to my eyes a renewed urgency to the issue . . .  and puts the owners of those products on the clock in terms of dumping @ market prices OR risking product quality degradation (on some portion of the overall refined products).

Tarzan's picture

Capt Debtcrash, quit messing with the plot! 

You can't blame it on high oil supply if commodities of every kind are backing up,

why then, they might have to admit THERE'SBEEN NO RECOVERY! 

Valuations of every sort are FAKE!  The economy is STILL IN THE TANK!

Implied Violins's picture

Dane's got an even better document that serves as THE smoking gun proving geoengineering is taking place - a 750-page 1978 congressional document:

The link to the document is at the bottom of the article.

They've been doing this shit since 1920!! There's charts in there showing that they sprayed 15% of the continental US in the 50's with various stuff to test things out, as well as find out how the atmosphere flowed. They used weather warfare in Vietnam; they had a spray program in CA during the 70's drought; and - they were doing this all over the world. The scope of it is incredible. They even purposefully sprayed to see what they could do to crop yields, which resulted in devastated crops and farmers who were hurt by it - yet they absolved themselves of all liability - and kept doing it! It's all in there.

Just remember, that was 37 years ago...whatever could they have been doing since then, I wonder?

Non Merger's picture

Excellent link. That document has a shitload of information.  

BarkingCat's picture

The US government has done a lot of weird shit. It does not change the fact that it is shit.


KansasCrude's picture

The prognostication was that Conventional Oil peaked around 2005 and it did.  Fracking and Shale oil have kept production static with a slight upwards bias....Check out the production numbers that's not the issue.  Issue is DEMAND and the world choked on +$100 oil.  The financials for our economy can't run on EROEI that the incremental barrels come to market at.    So there you have it we can't afford our prosperity's cost.  The demand destruction caused by the financial collapse on a worldwide basis is why we have a glut.  Enjoy it while you can.   It doesn't change the fact that oil production is not growing. In fact it setting up the dynamic that oil production will drastically drop.   Check out the Bakken for verification.....


JLee2027's picture

Demand is dropping. Slow flush. Economy coming apart in slow motion.

Livingstrong's picture

Smartest and most realistic comment of the day. Simple and truthful.


balanced's picture

Take heart gladius17, when everyone calls you crazy and/or makes fun of your ideas, you can be sure that you're on to something.

Tarzan's picture

Oil is scarce like water is scarce, all propaganda

The Newspeak that the glut of oil is from the Saudis pumping more oil is a diversion designed to mute the fact that the wolds Economies are shrinking and thus the Demand for oil is too....

The demand is shrinking in an economy were pumping less oil is not an option.  Just like the velocity of money changing hands must be propped up at any cost, They must keep the oil churn going or the price will hit rock bottom.

As the price goes lower the margin calls come knocking and contagion spreads to seemingly unrelated industries.

It's like the music at the dance stopped and everyone just kept dancing in the silence, hoping nobody would notice....

Countrybunkererd's picture

I can't disagree with you....BUT... you can, for a couple of hundred g's get the clouds "peppered" to ensure a sunny day for your wedding.  I am NOT kidding, high, or...well maybe a bit crazy, but you can ensure sunny days (making it rain early) for the right price.

Blue Vervain's picture

The joke is on those oil-importing countries which have somehow managed to fabricate economies that depend upon high oil prices. Even typically cynical Zero-Hedge commenters seem to be quaffing the kool-aid on this.

gladius17's picture
gladius17 (not verified) zerotohero Nov 12, 2015 11:54 AM

I already did, 4 1/2 months ago. Cops raided my dilapidated trailer park home at gunpoint and carried me away to jail for 4 months, on marijuana charges, and seized all my computer equipment. While I was in jail the local meth heads stole everything of value I owned. Then the landlord evicted me. Now I'm living in a Motel 6 as I try to piece my life back together. I just got my computer equipment back from the investigator and was just horrified yesterday to find that one of my hard drives is damaged and inaccessible. That hard drive contained years and years worth of work.

I won't bore you with the 10x longer explanation of everything else this government has done to me over my short and miserable life. That's only the latest ass fucking.

How many businesses do you suppose I'll be starting over the next 5 years? How many employees am I about to hire, being in this condition? How anxious am I to pay one dime of tax money? I'm 32 years old and single. I would have liked to have gotten married and started a family by now. At this point I have no clue when that will ever happen.

How many other millenials are in similar situations and also NOT about to contribute anything of value to the economy, due to their entire lives being ruined by this fucked up government? 1/3 of us are living with our parents. If it weren't for my mom (who's a nurse; I don't have a dad who's worth a fuck) I'd be homeless.

If YOU walked the halls of power, what lengths would YOU go to in order to ensure that people like me don't decide to storm your castle and disembowel you for the pain and suffering you've caused us?

nope-1004's picture

Peak bullshit.

Do you tame lions too in the evening when you're done proving perpetual motion?

janus's picture

he probably is telling the truth, nope-1004.

gadsden PD don't play.  based on the nature of the arrest and the duration of the sentence, my guess is that he had over an ounce and he was probably tagged by an informant (who knew how much he'd have and when he'd have it).  i would also suspect that gladius was small-time peddling; and there was likely an intent to distribute charge tacked on...which is why he couldn't afford bail, in that it was likely in excess of 15K.

and, gladius, i feel badly for you...forget the fact that i've gone after you once, let me give you a bit of very sincere and earnest advice: if you're gonna be talking shit online, specifically if the nature of your postings implies mowing down 5-0 with a full-auto machine gun (and, my friend, you did just that), it's a very bad idea to have your unconnected, low-level-dope-dealin white-ass flappin out in the wind...especially in gadsden, alabama.  this site has a lot of attention focused on it, and you better believe that 'someone' in alabama took note of your musings.  now, if i were you i'd show a good-faith effort to work hard and contribute to society in some meaningful way, or get the fuck out of gadsden.  ain't nobody gonna bust up your life for smoking a lil bit of reefer in your home, not even in gadsden...but if you combine low-level dealing, incindary web-postings menacing cops and include information as to your hometown in alabama, you can expect trouble.

yes, the eye is gonna be on you down there...just get a job with a construction crew...hell, something...and DO NOT get desperate and start supplementing your income with dealing, the next time they'll park you in the state pen for 18 months.  

your life is not over, but you're gonna have to improvise for a while.

other than that, i do likewise suspect that there is some level of weather manipulation afoot.  the chem-trails are real, ZHelaots...don't believe janus, just trust your lying eyes -- they're all over the fuckin skies.  no two ways about it, those are NOT condensation trails.  and if someone has more plausible excuse for these thing's existence, janus is all ears.  but you're not going to convince me that i dont' see what i see in the skies...just about every goddam day.  

this country really has gone totally mad.  even Hedgers, as skeptical as we are, will mock the suggestion that our government is engaged in an actibvity that they've admittted to and they spray that shit in your face on a daily basis.  

i really do do my dead level best to keep the faith...i want so badly to believe that amoricans don't deserve what's coming...but when shit is being sprayed in the skies and the acknowledgement of it incites mockery, when it's plastered against the wild blue yonder from sea to shining sea and you're labeled a wacko for admitting that you see it...well, shit, if you can't beat em, join em...sure, guys, what was i thinking? -- the emperor is decked out in the most resplendent of fashion, he isn't nude at all.  maybe i've got my tin-foil hat on too tight.

enjoy your soylent green, bitchez.


Fahque Imuhnutjahb's picture



Barrie Trower alluded to the fact that folks need to rethink the "tinfoil hat" theory.  According to him, tinfoil is riddled with

microscopic holes, which actually serve to concentrate, or amplify wave penetration.  He advised a thicker stock of aluminum,

roofing sheet thickness, approximately 26 gauge, shiny side out.

FreeMoney's picture

Commercial airlines are fighting for their very existance.  Weight on the aircraft = fuel burned to move it.  No airline anywhere will be carrying more weight of any sort than they have to for any given flight.  Airlines will switch engine manufacturers or models of engine to save .1% fuel consumption per hour.

The trail you see is not from chemicals.  It is moisture forced to condensing out of vapor becuse of the aircraft compressing the air as it passes by or water vapor as a by product of combustion.

That is why it is call a "contrail" or "vapor trail"

Thats right folks....its just a cloud.

Implied Violins's picture

You're wrong.

Here's a link to a video that shows why:

Not only that, I trust my own eyes. I often see planes overhead leaving behind thick, long trails that disperse over time to cover the sky - while also observing commercial air traffic over the Sierras leaving behind short, thin trails that disappear in the same time and altitude. On a clear day. With no wind or weather systems incoming. Many, many times.

gladius17's picture
gladius17 (not verified) Implied Violins Nov 12, 2015 3:45 PM

Yes, I've seen the exact same thing, in northeast Alabama. One clear summer day last year I looked up in the sky and saw two "chemtrails" stretching across the sky, crossing each other at a 90* angle, from horizon to horizon basically. They were bright white and persistent. Looking more closely I saw a third jet flying along somewhere in the middle, with a normal looking contrail that dissipated away not too far behind the aircraft.....just like I remember seeing years ago as a kid when I'd stare up in the sky and look at such things. After all this reading on the internet about chemtrails and such, that was a real WTF moment, to actually see clear evidence of it right there in the sky above me.

gonetogalt's picture

On exactly what basis would any dipshit down this observation???

I didn't believe in Geo-engineering fully until I looked with my own eyes and actually thought about what I was seeing.

Beware the Lamb!!!

Debt-Is-Not-Money's picture

"Thats right folks....its just a cloud."

You're so full of shit if you ever take a laxative you'd dissolve into a hot steaming pile!

IF these are condensation trails they'd evaporate in seconds.

What skool you went?

That's right, govmint skool.

stant's picture

Loved guntersville lake

gladius17's picture
gladius17 (not verified) janus Nov 12, 2015 2:38 PM

"my guess is that he had over an ounce and he was probably tagged by an informant (who knew how much he'd have and when he'd have it).  i would also suspect that gladius was small-time peddling; and there was likely an intent to distribute charge tacked on...which is why he couldn't afford bail, in that it was likely in excess of 15K."

You are completely wrong. See explanation below. I haven't sold (or offered to sell) a single gram of weed in Alabama. I haven't even seen anyone or hung out with anyone in the entire year since I've moved back here. I've been keeping completely to myself and hiding in fear of my life. They specifically searched me out and found me, just to get me, just because that's what these assholes do.

TruthHunter's picture

I remember driving through alabama awhile back. A lot of towns have signs saying "Police Juridiction of XXXX"

Probably outside of Gadsden too...May explain a lot.


I don't think I would live in a State whose constitution is longer than the New Testament!

AetosAeros's picture


Good advice to Gladius. And Gladius, take it with a grain of salt. Wisdom doesn't always come from accepting everything anyone tells you, it comes from accepting what you can manage, growing from it, and managing more. Don't hurt yourself by attempting too much at one time, and screaming in the streets just brings the wrong attention to you. Tact, subtelty, perserverance. You'll do well from there.

Janus, Gladius, and fellow ZH'ers:

I've had a hard time with the whole chem-trail processes. About a year ago someone (memory is foggy) either on here or any one of a multitude of site's I visit proposed his take on how the whole weather modification works. Since then, I've kept my eyes, newly opened to the plausibility and have attempted to garner more evidence, for my own understanding you understand, to determine if this could actually work.

In a nutshell (yeah, I know I'm long winded at times):

We do know that some form of weather modifications, locally, are not only realistic, but could also be ramped up and conjoined with other methods to create a larger effect, I.E. salting clouds, smoke, draining/creating large bodies of water, and other means that the astute reader will look up for themselves as proven technologies that you may or may not be aware of.

But with the chemtrails, the writer presented this observation- if there is some measure of aluminum product being dispersed it has the potential to do 2 things. 1) create a reactive molecule that will be excited by small to large bursts of microwave, such as what is created from cell phones and especially the majority of cell towers in a region (you don't think that the #'s we see aren't overkill do you?). This creates a slight warming effect to upper levels of the atmosphere in a region, induce a change in winds due to basic science- hot rises, cold swoops in, winds is created by this desplacement and it moves other areas patterns as well. 2) aluminum in fine particulates creates mental issues to humans and other creatures, albeit at a very small level, but with time, heavy metal toxicity occurs and a plethora of health issues emerge. Please, rather that disregard, learn and disprove or see what the possibilities are. 

I'm just putting this out there for consideration. I can say, the more I've learned, the more it piques my interest and provides better insight into what could be being done, and how it seems to make a crazier populace that is easily controlled by redirection.