There are some patterns we expect to see with stored gasoline in the next year. Biodiesel blends are expected to rise if the Environmental Protection Agency (EPA) increases its target of using more than one billion gallons of biodiesel fuel nationwide. This is a 28% increase over the prior year. After the compliance window for new storage tank regulations had closed in 2013. To prevent issues like gasoline leaks, these regulations sought to keep storage tank designs and systems current.
So what can we expect in 2022? Why should companies and individuals who store or consume diesel fuel be concerned about what’s coming next? Let’s have a glimpse into the future of the oil and gas industry.
Farmers Will Be Affected by New Regulations on Fuel Storage
A few years before 2011, the EPA issued new regulations governing the use of underground storage tanks. The new regulations mandated that organizations that store gasoline develops and implement detailed strategies and procedures to reduce the risk of fuel leaks think about tools and equipment like drive over bunding. Initially, this seems like a great concept; after all, who is against stopping such a thing? Politicians petitioned the EPA to extend the compliance period from 2011 to May 2013 since the new regulations are more onerous than they seem. That day is rapidly approaching.
These restrictions aren’t only in place to keep polluters like BP and evil oil corporations out of our backyards. Small companies and farms bear the brunt of these restrictions since they outnumber large corporations and have fewer additional resources to devote to complying with new requirements. They’ll have to make sure that their small companies and farms understand the regulations and have a strategy in place before proceeding.
Global Oil Demand Is Falling
Due to COVID-19, oil demand has dipped, slowing down the market. As the need for hydrocarbons rises, so will the market for transportable fuel storage tanks. As a result of lockdowns and social distance measures brought on by the COVID-19 pandemic, mobility dropped precipitously, causing fossil fuel usage to plummet.
Because of reduced air and land travel, the International Energy Agency (IEA) predicts that world oil consumption will fall by eight percent by 2020. In the global oil and gas storage services market, North America is projected to maintain its lead through 2025. The global economic downturn, COVID-19 spread, and increasing use of electric cars threaten the oil and gas storage services market.
To make matters worse, the International Energy Agency (IEA) forecasts that global oil consumption will recover to pre-pandemic levels by 2023, provided that COVID-19 transmission is stopped by then. Because of this, coronavirus-driven adoption of mobile fuel storage tanks is expected to suffer. Furthermore, fossil fuels have been hampered due to the robust development of renewables throughout the pandemic. This could also hinder the advancement of this industry.
The EPA Now Approves More Biodiesel Products
The EPA publishes its annual decision on the number of specific biofuels that must be produced for the next year in the middle part of the year (May to September). To meet its goal of 1.0 billion gallons of “bio-mass-based” diesel fuel in 2012, the EPA decided in 2011 that the United States would produce and utilize it. The term “bio-mass-based” refers to biodiesel derived from a plant rather than animal fats. In colder regions, the use of biodiesel means poorer mileage and more significant engine shutdown problems, even if supply capacity keeps up with demand (if not, costs will rise). Additives such as diesel fuel stabilizers will need to be used more often. It’s terrible news for the biodiesel-required bus fleets.
Additional biodiesel usage will lead to 28% more issues with fuel stability because of the increased volatility. Users require biocides and storage stabilizers to keep diesel fuel fresh and free of harmful microorganisms that can grow in big storage tanks and eat away at bio-based fuel.
Billions of dollars are invested in the oil and gas sector, which has altered many oil-exporting countries’ economic landscape. There is a massive oil and gas logistics network because of the enormous amount of crude oil that has to be moved across the globe in large amounts. Even though transportation is a critical component of this industry’s operations, oil and gas storage is all too frequently neglected.
Extracted and processed petroleum products are kept in oil and gas storage facilities. Tanks, empty salt caves, and floating vessels are standard storage options for such goods. SpendEdge’s procurement specialists estimate that the oil and gas storage industry will be worth $12.1 billion in revenue by 2022, based on current spending patterns.