Nov 28, 2012
cushing is a giant storage terminal. when your oil is transmitted there, it is put in storage tanks. once your oil is in storage, you pay a fee for that storage. when you order your oil transmitted out of cushing to whereever, your order waits in line behind all the other orders for transmission using the same facility your oil will use. no taking cuts. when oil is scarce, this process in relatively quick. when there is a glut of oil in storage, as there has been since 2009, this process can take days to weeks. all the while, storage fees, interest charges and the time value of money all add to cost of your oil.