American oil companies have nowhere to store raw materials: Washington is ready to provide state storage

US oil companies will be able to rent a place in the federal storage of the Strategic Oil Reserve.

American oil companies have nowhere to store raw materials: Washington is ready to provide state storage

On Wednesday, April 1, reports the agency “Bloomberg”, citing its own sources.

According to media reports, now this possibility is being considered at the US Department of Energy, although the agency did not confirm the information, but did not refute it either.

In the context of the coronavirus pandemic, oil consumption has declined, and the storage facilities of many private companies are gradually filling up. This threatens to “freeze” the extraction of raw materials, reduce staff and, as a result, a blow to the economy. If companies are granted access to the federal storehouse, they will be able to unload the extracted oil there, continuing to accumulate it.

It is worth noting that the federal storage can hold 713.5 million barrels and 635 million are already full. At the same time, even American pipeline operators are asking companies to reduce raw material production, as the space in the tanks and oil pipelines is running out.

As News Front previously reported, the situation with the collapse in oil prices has reached the point where one of the American companies has offered to pay extra to “buyers”, if only they would take the raw materials from the storage.

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