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Any idea how much it takes to store oil in Cushing during normal times ?

• donarb 7y ago
  This article from March 25 states that rates at Cushing more than doubled from 20 cents per barrel per month to 50 cents since February. https://www.reuters.com/article/global-oil-storage/global-oil-storage-fills-to-the-brim-despite-leap-in-costs-idUSL8N2BH3AM https://www.reuters.com/article/global-oil-storage/global-oi...
  • mcv 7y ago
    If storage rate is cents per barrel and barrels cost negative dollars per barrel, is sounds like storage is still very affordable.
    • HighPlainsDrftr 7y ago
      If you have an old oil field that is at end of life, couldn't you pick this stuff up at $-40.00/barrel and pump it back into the empty reservoirs? I'm sure there is regulation against it, but if it was once a production reservoir, why couldn't you store it there? You would have to drill. You wouldn't have to do much at all.
      • semi-extrinsic 7y ago
        You would need a suitable formation in terms of geological properties and then you'd need to drill and complete an injector and a producer well. Best case, you would probably lose half the stuff you're trying to store due to multiphase flow in reservoirs being a total drag. Worst case, the oil you're storing isn't compatible solubility-wise with the residual oil left in the reservoir, and you cause massive asphaltene precipitation and lose your entire storage well.
        • loa_in_ 7y ago
          The fact that such precipitation is a known fact tells me it has been tried before.
      • hermitdev 7y ago
        Can't reply to semi-extrinsic, but it would seem to me, it'd be cheaper to just shut down the originating well.