Read the Latest News Affecting the Tank and Terminal Industry
Royal Vopak, World's Biggest Oil Storage Firm, Says Almost All Space Sold
The Gulf Times, April 21, 2020
Rotterdam-based Royal Vopak reported earlier this month that nearly all its storage space for crude and refined products is full. The glut of crude oil, a result of collapsing worldwide demand in the wake of the COVID-19 outbreak, is forcing storage brokers to scour the market for places to stash reserves.
Trump Administration Eyes Paying Oil Companies to Keep Crude in the Ground
The Hill, April 16, 2020
In a plan mapped out by the Department of Energy, the Trump Administration may pay oil producers to leave oil in the ground as part of the Strategic Petroleum Reserves (SPR). Though a previous proposal to purchase domestic oil for the SPR outright was initially rejected by Congress, the idea is now gaining ground among Republicans.
Traders are Using Giant Supertankers to Store 160 Million Barrels of Oil as the Coronavirus Torpedoes Demand
Markets Insider, April 20, 2020
A record 160 million barrels of crude oil are currently being stored aboard 60 VLCCs and a number of smaller tankers idling along the U.S. and Singapore coasts as oil traders continue to seek storage amid rapidly declining landside capacity.
Upcoming Oil and Gas Pipeline Projects Delayed by COVID-19
Submar, April 16, 2020
Adverse market conditions have stalled pipeline projects across the globe as a result of declining crude oil demand and a weak economic forecast. In the U.S., Phillips 66 announced its Liberty Oil and Red Oak projects would be suspended as other operators are reported to be reducing staff and suspending work at pipeline construction sites.
New Corpus Christi Oil Dock Loads First Vessel
RigZone, April 17, 2020
Pin Oak Corpus Christi LLC announced it has received its first vessel at its newly commissioned Dock 14. The new dock can accommodate tankers up to Suez-max class and load more than 40,000 barrels per hour.
Enterprise Opens More Storage Options with Two-way Shipping Along Seaway Pipeline
Houston Chronicle, April 16, 2020
Houston-based Enterprise Products Partners announced it will offer two-way shipping on its Seaway pipeline connecting the Gulf Coast to Cushing Oklahoma beginning May 1, after approval by the Federal Energy Regulatory Commission.
GP Global Acquires Lubricants Assets of Nigeria’s Grand Petroleum
EIN Finance News, April 15, 2020
GP Global announced they had acquired lubricant assets from Grand Petroleum a member of the Nigerian conglomerate, The Nosak Group. The assets include a blending plant and distribution network and cements GP Global's presence in Nigeria and West Africa.
Oil Glut May Overwhelm Global Storage Tanks Within Weeks
Bloomberg, April 15, 2020
The announcement by OPEC members and their allies of massive production cut withers in the face of global demand slashed in the wake of the coronavirus pandemic. Falling to an 18-year low, crude oil consumption fell to an 18-year low during April.
Federal Regulators Exempt Expired TWIC Cards Through July 31
Transport Topics, April 14, 2020
In an effort to keep cargo moving, the Transportation and Safety Administration granted temporary exemption to expired Transportation Worker Identification Credential holders through July 31 for cards that expired after March 1.
Railroads Resist Oil Companies’ Demands for Storage in Rail Cars Citing Safety Concerns
Insurance Journal, April 13, 2020
Union Pacific, BNSF and other railroads are telling shippers they do not want loaded tanker trains sidelined indefinitely in private families along their tracks, citing safety concerns and federal guidelines that discourage leaving crude oil in transport for an extended time.
Phillips 66 to Offer Crude Oil Storage
OK Energy Today, April 6, 2020
In response to quickly diminishing capacity for crude oil reserves, Phillips 66 Partners LP is offering shippers storage on its Gray Oak pipeline system. The Gray Oak pipeline has approximately 1 million barrels of capacity available for WTI and WTL grades of crude.
How Much More Can She Stand, Part 3: Crude Export Terminals Weather Stormy Times
RBN Energy, April 14, 2020
With crude prices at record lows, worldwide demand off by more than 20%, and storage capacity becoming harder to find, export terminals will need to be competitive in the coming months as shippers look for highest efficiency and lowest water access cost offers.
2nd Contract Awarded for Corpus Christi Channel Deepening
Alsindbad, April 8, 2020
The U.S. Army Corps of Engineers has awarded Texas-based Callen Marine a $97.9 million construction contract for the second of four stages of work at the Corpus Christi Ship Channel. The improvement project includes dredging the channel to a depth of -54 feet Mean Lower Low Water.
Plains, Phillips 66 to Defer Red Oak Cude Oil Pipeline
Kallanish Energy, April 9, 2020
Texas-based midstream company Plains All American will cut its 2020 capital spending by 33% and is suspending its joint-venture Red Oak pipeline project. The project suspension is estimated to save Plains All American and partner Philllips 66 approximately $600 million.
India Plans to Fill Strategic Oil Storage by the Third Week of May
Hydro Carbon Processing, April 14, 2020
India announced it plans to fill is Strategic Petroleum Reserve by moving local refinery excess crude to three SPR locations in southern India by the third week of May.
Ergon Purchases Western States Asphalt Group
Informed Infrastructure, April 6, 2020
Ergon Asphalt & Emulsions announced its acquisition of the asphalt sector of Western States Group, LLC and Western States Asphalt of Montana, LLC., as part of its strategy to expand its presence in the Intermountain Northwest.
Houston Ship Channel Expansion Reaches Major Milestone
Investor Network, April 24, 2020
Capping off a 4-year, $10 million study on the Port of Houston channel improvements, including economic value and environmental requirements, the US. Army Corps of Engineers received a signed Chief of Engineers Report, the first of several steps toward project authorization and funding.
Oil Prices Could Go Negative Again for Reasons Beyond Just Storage
CNBC, April 28, 2020
Another round of nose-diving oil pricing may be just ahead as the Chicago Mercantile Exchange recently raised its margin for forward oil contracts to $10,000. At 1,000 barrels per contract, the new margin leaves pricing at $10 a barrel. A drop in pricing could trigger margin calls and sell-offs to raise cash, sending prices spiraling downward again.
The Price of Oil Was Actually Negative Last Week. What Happens Next?
The Washington Post, April 28, 2020
Falling to historic negative territory, oil prices are still uncertain as demand continues to remain low, and capacity runs out. Though economies will eventually recover, shrinking budgets, bankruptcy, and increasing layoffs continue to batter the industry.
Alysa Begins 50,000 Barrel-Per-Day Cut to Oil Flow in Trans-Alaska Pipeline
Anchorage Daily News, April 25, 2020
In response to decreasing demand worldwide, Alysa Pipeline Service Co. announced this week it was cutting production by 10% to facilitate May inventory levels. The cut amounts to about 50,000 per day in production, but does not mean any loss of jobs.