PODCAST:Odd Lots
TITLE:How Surging US Oil Output Is Being Moved and Stored
DATE:2024-02-09 00:00:00
URL:
MODEL:gpt-4-gizmo
The episode of the Odd Lots podcast, titled "How Surging US Oil Output Is Being Moved and Stored," delves into the intricacies of the oil logistics industry, highlighting the challenges and dynamics of transporting and storing oil in the United States. Tracy Alloway and Joe Wiesenthal lead the conversation, starting with a light-hearted reflection on Tracy's past attempt to purchase a barrel of oil, which underscored the complexities of oil handling. The discussion then shifts to the broader context of the United States' record oil production levels, exceeding 13 million barrels per day, and the logistical necessities that accompany such production volumes.
Stephen Barsemyan, COO at the Tank Tiger and co-host of the Tank Talk Podcast, joins as the guest to provide expert insights. The Tank Tiger operates as a clearinghouse for terminal storage, effectively serving as a marketplace for storage needs, akin to an "Airbnb for tanks." Barsemyan explains how the company facilitates transactions between those needing storage and those with storage capacity, highlighting the diverse needs for storing petroleum products, chemicals, and biofuels. The conversation touches on the evolution of oil production patterns and their impact on storage and transportation infrastructure.
The discussion covers the physical and market mechanisms of oil storage, including pricing models, speculative market participation, and the effects of global events on storage demands. Barsemyan details the logistics of moving oil from production sites to storage facilities and ultimately to end-users or export markets, emphasizing the importance of pipeline connectivity, tank design, and the adaptability of storage operations to meet environmental regulations.
Reflecting on recent market dynamics, such as the diesel shortage in the Northeast and the impact of the Russia-Ukraine conflict on oil supply chains, the episode offers a comprehensive overview of the challenges and strategies in the oil logistics sector. The dialogue concludes with reflections on the changes in the industry since 2020, including mergers, acquisitions, and the growing emphasis on renewable fuels, underscoring the continuous evolution of the oil storage and transportation landscape.
