As oil producers dial back production in response to the demand collapse, the challenge of excess supply and where to store it remains. The storage shortage has producers shutting in wells and traders looking in every nook and cranny for spare capacity. As full rail tankers and VLCCs congregate in refinery yards and ports, other forms of temporary storage are now on the front lines of offering relief.
“Our industry requires innovation and flexibility, to try new things and do things differently when it is needed,” Mitchell Shauf, executive vice president of water solutions at Select Energy Services Inc., shared with Hart Energy. “One of our strengths is adapting to rapidly changing market conditions like the one we are in now.”
Select, for example, modified its above-ground storage tanks (AST) for crude oil storage. This application of an established fluid storage system is designed to provide operators with a temporary and safe option to store and treat large volumes of crude oil, according to the company.