International industry leaders will come together in Dubai this month for the third edition of Tank World Expo to discuss global oil storage and its impact on the Middle East oil and gas industry.
The event will take place at the Dubai World Trade Centre from 13th-14th of April bringing together more than 100 technology providers and 80 expert speakers to an audience of more than 2,500.
Supported by the UAE Ministry of Energy, the conference will feature a strong line-up of speakers including Dr. Matar Hamed Al Neyadi, Undersecretary, UAE Ministry of Energy, Mohamed Daoud, Manager, Projects Quality, ADCO, Edwin Lammers, Executive Commercial Manager of the SOHAR Port and Freezone, and many others.
The key relationship between the price of oil and the capacity to store it, will be a key topic on the agenda. As the industry is looking for new technology to storage challenges, new infrastructure investments and more unconventional methods such as floating storage, take centre stage.
The effects of oil prices falling to as low as $44 per barrel, has led to traders increasingly seeking out storage in order to sell at a profit when the prices rebound.
As a result, the limits of global tank capacity are reaching critical levels. In a recent report, the International Energy Agency reported global stock levels at an 80-year high.
“2015 started with mixed feelings about the reaction of oil companies with regard to oil price development,” said Hendrik Schaake, business development manager at Endress+Hauser.
“However, many projects are still on-going since the price drop is not a result of a decrease in demand. Furthermore, we see a strong increase in interest for optimization solutions for existing installations to streamline product and business information flows, reduce losses and assure safety.”
“In terms of storing oil on the high seas, this is an option that presents both benefits, as well as challenges,” commented Edwin Lammers, executive commercial manager of the SOHAR Port and Freezone.
“Towards the end of last year, the spot price for oil was lower than in the futures market. This is one of the reasons why crude oil is being stored at sea, as companies currently see a greater benefit in buying up physical oil stocks and immediately selling futures. The challenge, of course, is that if interest rates or storage costs increase, the cost of storing oil out at sea would eclipse any future profits.”
“At such a crucial time in the energy market, storage issues have come to the forefront in determining future oil prices,” said Alex Williamson, managing director, Tank World Expo.
“Tank World Expo provides a crucial platform for industry leaders and market experts to discuss these challenges. While the entire world keeps an eye on the price of oil, the discussions here at Tank World Expo provide crucial insights into storage as a key factor in the future of the entire industry,” he added.
