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Introduction
In this section, we will take a look at the logistics of petroleum products with a special focus
on oil depots. In a second video, we will explore the different means of oil transport. And in
a third video we will deal with the specificities of gas logistics.
So, for this video, first, we will introduce how oil distribution is organized and after, we will
focus on oil depots. We will see what they are used for; and the several types of oil depots
will be described.
Oil storage depots are not only used to manage the distribution of petroleum products in a
given region. Industrialized countries also accumulate oil and gas reserves for strategic
reasons. This provides them with energy resources in the event of political upheaval
threatening their supply.
Strategic storage can be used if there is a break in supply- either because of a delay in
delivering crude to a refinery or a refinery shutdown that prevents the delivery of finished
products over a longer period.
For example, all EU countries have an obligation to store enough additional oil to meet
national demand for three months - these are known as strategic stocks.
Depending on the country, strategic stocks could consist of crude oil (as in Germany),
petroleum products or a mix of crude oil and petroleum products (as in France).
These strategic stocks can be managed by state-run companies, private companies or both,
working in tandem.
For example, the Strategic Petroleum Reserve is an emergency fuel storage of oil maintained
by the United States Department of Energy on the Gulf of Mexico. It is the largest emergency
supply in the world: this equates to about one month of oil at daily US consumption levels.
Another type of depot is underground storage. The main types of underground natural
storage sites are: depleted natural gas or oil fields, aquifers, mine caverns, and salt
caverns.
Take the example of salt caverns: their capacity ranges are very large, a few dozen million
barrels. This type of storage is cheaper than storing oil below the surface. The caverns were
created by drilling down and then dissolving the salt with water.
The Strategic Petroleum Reserve in the United States contains a number of artificial caverns
created in salt domes below the surface.
In a service station, the fuels are typically stored underground to save space at the facility,
but some facilities have aboveground tanks. - Whatever the type of oil depot, a number of
safety and security standards must be met.
Indeed, petroleum products are dangerous and carry a risk of fire or explosion. Ensuring the
safety and security of storage depots and of the distribution chain is therefore crucial. In
Europe, refineries and oil storage depots are subject to very strict regulations, defined in the
Seveso II directive.
Moreover, to avoid any pollution caused by leaks, the tanks are regularly inspected and the
extent of corrosion is examined. Each storage depot has a number of facilities, like retention
ponds around the reservoirs to recover any leaking liquid, or a waste collection skip.