PADD 1B Bio Storage Demand & Imports
According to The Tank Tiger’s Storage Demand data, in late May through June of last month there was a sharp increase in storage demand for Bio. Entirely all of this demand was from imports via Vessel. Since there is already a shortage in heated bio tanks in NY Harbor, other ports outside in PADD 1B became hotter markets to lease storage. Most of the barrels were coming from Europe, as an Arb opened to move product across the Atlantic. However, this surge in demand also revealed a shortage of heated tanks necessary for effective bio storage. As a result, it is predicted that storage prices will see an uptick after a slight delay. This price escalation is a direct consequence of the constrained supply of heated tanks compared to the heightened demand for bio storage in the region.
In recent years, there has been a significant rise in the adoption and production of biofuels, and this growth has been further propelled by the involvement of major oil companies. Big oil companies, traditionally associated with fossil fuels, have increasingly recognized the need to diversify their energy portfolios and reduce carbon emissions. As a result, they have begun investing in and promoting the development of biofuels as a viable alternative to conventional petroleum-based fuels.
The push from big oil companies towards biofuels can be attributed to several factors. First and foremost, there is a growing global concern about climate change and the need to transition to more sustainable and environmentally friendly energy sources. By embracing biofuels, oil companies can demonstrate their commitment to reducing greenhouse gas emissions and contribute to a greener energy future.
Date: 7/14/23
