Commercial storage in USA to reach capacity in second quarter - Hess CEO

Commercial storage in USA to reach capacity in second quarter – Hess CEO

May 08, 2020 News

– Says company had to charter three Supertankers to store its oil

As a result of the unprecedented reduction in demand due to COVID-19, Hess Corporation reported yesterday that commercial storage in the United States is expected to reach capacity in the second quarter.

Hess CEO, John Hess

Taking this frightening reality into account, the company’s Chief Executive Officer (CEO), John Hess said that curtailments and shut-ins of production by the industry would be required. Regarding measures it had to take, Hess revealed that the company had to charter three Very Large Crude Carriers (VLCCs) to store two million barrels each of May, June and July North Dakota Bakken crude that is expected to be sold in the fourth quarter of 2020.
Further to this, the company said that slowing economic activity caused by the pandemic has impacted natural gas nominations in the North Malay Basin (NMB) and Joint Development Area assets in Southeast Asia.
In Guyana, Hess noted that ExxonMobil has temporarily idled two of the four drilling rigs on the Stabroek Block due to pandemic-related travel restrictions. The official said that the Liza Destiny floating production, offloading, and storage vessel (FPSO) is expected to reach its full capacity of 120,000 gross barrels of oil per day (bopd) in June, with April gross production of approximately 75,000 bopd. Despite pandemic-related delays, he said that the Liza Phase Two development remains on schedule to start production in 2022.

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