Storage tank fabrication will be more necessary in the U.S., as oil production is expected to propel the country as the biggest exporter in the world.
The country will be the top oil producer in the world by fall of 2018, which creates a good opportunity for exports, according to an industry executive. Demand for crude oil in Asia, particularly in China and India, seem to show no signs of slowing down anytime soon.
If U.S. shale oil production exceeds 11 million barrels per day (bpd) in the next three to four months, the country will unseat Russia as the world’s biggest producer. Pioneer Natural Resources Chairman Scott Sheffield believes that production may hit 13 million bpd in the near future, while it may reach 15 million bpd by 2025 at the earliest.
Russia’s current output measures at 10.6 million bpd, while the U.S. and Saudi Arabia closely follow behind at 10.3 million bpd and 10.1 million bpd, according to the U.S. Energy Information Administration. Sheffield’s prediction seems likely to happen due to better productivity from new technologies such as improved drilling methods minus the added costs.
The higher output in the next few months indicates a chance for exporters to ship more oil for overseas markets such as China and India. However, the challenge awaiting American exporters involves reconfiguring refineries to be compatible with those in Asia.
Most refineries in the continent are designed to handle heavier blends. Hence, it’s important for American firms to consider the design of local refineries and storage tanks to avoid the issue with compatibility.
U.S. energy companies need to invest more in better storage tanks to address possible incompatibilities with oil refineries in the East. The vast production means that there is a great opportunity to tap into Asia’s growing appetite for crude oil exports.