Permian crude driving storage expansion
North American crude output is exceeding storage capacity and driving a storage construction boom
The major trend in North American storage markets this year has been the focus on handling the continent's burgeoning crude oil production. It is in a unique position among the world's centres, with storage hubs in Asia-Pacific and Europe largely driven by market backwardation—when spot prices are above futures prices—and concerns over the implementation of the International Maritime Organisation's (IMO) stringent new sulphur regulations for maritime fuels. By August, crude oil storage volumes at the key price-setting hub of Cushing, Oklahoma, were up an extraordinary 83pc from August 2018 at 48.1mn bl, according to oil storage specialists at Genscape. It found that crude volumes stored alon
Also in this section
24 January 2025
Domestic companies in Nigeria and other African jurisdictions are buying assets from existing majors they view as more likely to deliver production upside under their stewardship
23 January 2025
The end of transit, though widely anticipated, leaves Europe paying a third more for gas than a year ago and greatly exposed to supply shocks
23 January 2025
The country’s government and E&P companies are leaving no stone unturned in their quest to increase domestic crude output as BP–ONGC tie-up leads the way
22 January 2025
The return of Donald Trump gives further evidence of ‘big oil’ as an investable asset, with the only question being whether anyone is really surprised
