Renewable fuel & feedstock storage requests on the rise
There’s certainly quite a bit of excitement in the air as we enter the 4th quarter. What with meaningful football being played in Texas and with oil prices on a relentless climb to $100/barrel there are a lot of flying chest bumps echoing through The Lone Star State. People seem to be happier when football is good in Texas. Is this the year that the Cowboys make it to the NFC Championship? Could the Longhorns end up facing the Aggies in the Natty – to be played in Houston in January?? Of course, don’t sleep on those Rice Owls. While the Red River Showdown might be getting all of the attention this week, the MVP of the last quarter is most certainly WTI. If you had WTI in your fantasy pool, you would have been up 29% last quarter. WTI ended the week at $90.97, up another 1% for the week. It should surprise no one that they are mopping the tanks walls in Cushing right now to keep tank roofs in flotation. We have seen Cushing inventory drawdowns taking place in 12 out of last 13 weeks. OPEC+ has signaled to the market that they should not expect changes through year-end. If you’re a fan of volatility, it should be a very spooky October. When one producer steps aside, usually another one steps up. Well….we’re waiting!
Oh it’s true. It’s true. In June, the IEA estimated that investments in clean technologies will reach $1.7 trillion this year. In comparison, $1 trillion will go into fossil fuel projects. The US power grid is expected to double in capacity from 2022 to 2050, primarily driven by the growth of renewable capacity, which is expected to increase by 380% in that time period. By comparison, fossil fuel–generating capacity is expected to increase by only 11%. Vopak celebrated plans to transition 22 of its 82 fuel storage tanks at its Los Angeles Terminal to cleaner Sustainable Aviation Fuel and renewable diesel. That transition is already underway. A long-term storage agreement with Neste supports the capital project, which is expected to cost about $30 million. The Tank Tiger is has been fielding inquiries on a routine basis for storage for renewables and renewable feedstocks. If you build it, they will come. If you don’t know who “they” are yet, just ask us and we’ll tee it up for you.
