Storage tank construction takes a pause south of the border

Storage tank construction takes a pause south of the border

Late last week, the US Energy Information Administration released its bi-annual Working and Net Available Shell Storage Capacity report, with data for March 2018.

STORAGE CAPACITY UNCHANGED FOR A CHANGE

For the first time since the EIA began reporting data in 2011, both shell and working capacity was unchanged in the first quarter of this year, indicating a slowdown in new tank construction. Working volumes were roughly unchanged in all PADDs, expect PADD 3 (the Gulf Coast) where about 900,000 barrels of new capacity was added.

WORKING STORAGE CAPACITY BY PADD (MBBLS)

INVENTORIES ON THE DECLINE

Crude stockpiles declined in the two major refining hubs - PADD 2 (Midwest) and PADD 3 (Gulf Coast). Midwest volumes declined by almost 28 million barrels while the Gulf Coast saw a 21 million barrel drawdown. Inventories at the Cushing storage hub in Oklahoma (included in PADD 2 figures) fell 27 million barrels.

CRUDE STOCKPILES BY PADD (MBBLS)

UTILIZATION RATES TAKE A TUMBLE

Total crude storage utilization declined from 56% last September to 49% at the end of March. The biggest declines were seen in the Midwest and Gulf Coast, both falling to about 56% of storage capacity. PADD 4 in the Rocky Mountains region was the only area to see an increase, rising from 63% last September to 71% in the first quarter of this year.

CRUDE STORAGE UTILIZATION RATES BY PADD (%)

Lower inventory volumes at Cushing resulted in a major drop in utilization rates, falling from 78% to just 45%.

US inventory and storage capacity data is released twice annually in May and November (with data for March and September). Results are posted under the "US Energy Statistics" webpage.


NOTES:
PADD 1 EAST COAST • PADD 2 MIDWEST • PADD 3 GULF COAST • PADD 4 ROCKY MNTS • PADD 5 WEST COAST
INVENTORY VOLUMES EXCL. LEASE STOCKS AND VOLUMES IN TRANSIT (TANKERS, RAILCARS, PIPELINE)
UTILIZATION RATES ARE A FUNCTION OF WORKING STORAGE CAPACITY, NOT SHELL CAPACITY.

SOURCES:
EIA • WORKING AND NET AVAILABLE SHELL STORAGE CAPACITY • MAY 2018
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