The world is running out of storage… WSJ

The WSJ reports that crude imports in the U.S. are on the rise because that’s where storage space is still available:

“The rest of the world is running out of places to store oil. Facilities from Rotterdam to Cape Town already are near capacity, but the U.S. still has room to spare, said Brian Busch, director of oil markets for Genscape, a data firm that tracks energy shipments.

The U.S. has filled about two-thirds of its total storage capacity and has room for roughly 100 million barrels more, Mr. Busch said. By comparison, major storage hubs in China and South Africa appear full, and Europe’s main storage space centered in Rotterdam appears to be within 10% of its usable capacity, according to Mr. Busch.”

Here is an estimate of the cost to store barrels:

“Socking away oil in American storage can cost between 30 cents and 85 cents a barrel each month, which is well below the $1 a barrel or more it takes to keep crude floating in oil tankers, observers said.”

And delaying delivery is effectively using tankers to store:

“Meanwhile, wait times to deliver foreign crude into the U.S. have become so backlogged that more than 28 million barrels of oil are sitting idle on tankers in the Gulf of Mexico, according to ship-tracking firm ClipperData. That figure is more than double the normal level, ClipperData said.”

Here is the link: http://www.wsj.com/articles/despite-shale-glut-u-s-imports-more-foreign-oil-1462310512#:x8eVR_sJ4G5EUA