With the end of 2020 mercifully in sight, Top 10 lists of the year’s most defining events in the oil and gas industry have begun to pop up depending on which news sites and publications you tend to follow. Reese Energy Consulting won’t be compiling such a list because, frankly, ours would cover at least 100+. But in retrospect, a few moments stand out as transformative for an industry that has always faced adversity. First, the April crude oil storage crisis. Following the trifecta of a pandemic, an OPEC spat, and a crash that redlined crude into negative territory, global demand for oil fell into an abyss. U.S. producers scrambled to find vacancies for their supplies amid a massive oil glut that birthed an equally massive demand to store it all. This led to the government offering storage at the Strategic Petroleum Reserve, virtually rent-free. Producers leased floating tankers and underground salt caverns, commissioned trucks and trains, and repurposed frac tanks. The panic for more storage rippled from most every prolific producing basin, leading us to make some hard and fast decisions about drilling and output. Not what we wanted but what we had to do. Time to: get creative, adjust to conditions, never take storage for granted.
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