Oil storage in the US Gulf Coast reached a record high of 69.603 million barrels since July 2014.
The regional record high has been mostly attributed to a surge in storage at Beaumont-Nederland, Texas, which hit a record high of 25.838 million barrels. Additionally storage inventories at Corpus Christi, Texas and Houston, Texas have also increased in recent weeks.
The previous regional storage high was 69.602 million barrels during week ending May 15, according to Genscape, which began monitoring the region in July 2014.
Must of the recent storage increase was due to higher Gulf Coast pipeline flows. During the week ending September 11, 2015 a total of 75% of Genscape monitored incoming pipeline capacity in the Gulf Coast was used.
As new storage is being built, pipeline capacity is filling, indicating an increased demand for storage at the Gulf Coast.
Over the past five weeks, a total of 3.048 million barrels of tanks began operating after construction was complete across all three locations – Beaumont-Nederland, Corpus Christi and Houston, and more than 18 million barrels of capacity remains under construction in the region.
This new capacity is being built in anticipation of higher demand and continued elevated crude production rates in the near future.