I have been wondering. With OPEC driving down the price of oil in order to stifle the growth of the American oil industry, what can we do about it?
More specifically, why don't these oil producers simply store the oil that is produced for more than the current per barrel selling rate and then sell the stored oil later when the price inevitably rises once more?
I understand that many companies have to keep pumping the oil to retain land rights. But I don't see why we can't get around that by pumping it and then storing it somewhere. Preferably on land and in facilities that are already owned. Then when the price goes into the profitable zone you reduce the volume you are pumping out of the ground and replace the output with the stored oil.
Also, I read that Saudi Arabia is cutting oil production. But that OPEC has taken actions to drive down the cost of oil. Yet I would think that overwhelming the market with supply would be how they drive down prices. So I am confused as to how the production cutting is working.
Any thoughts or information?