John Hopper, Tim Sullivan and Ashok Gupta Bring Wealth of Industry Experience
(Houston, TX) – February 3, 2016—Stone Bridge Energy Partners (Stone Bridge) today announced that three energy industry veterans, John Hopper, Tim Sullivan and Ashok Gupta, have joined Stone Bridge to help support the company’s development of its rapidly expanding portfolio of downstream and non-traditional midstream energy infrastructure projects.
“Stone Bridge has attracted a world-class team with extensive industry experience in site selection, commodity risk management, commercial contracting, project finance, economic analysis, EPC, chemicals and midstream,”said Stone Bridge Chairman and CEO, Bruce Bernard. “John, Tim and Ashok supplement our efforts with their deepunderstandingofglobalenergy and financialmarkets.”
Just a few miles from Houston’s Astrodome, a cluster of subterranean salt caverns will soon be able to store enough oil to fill the famed stadium.
By the end of 2016, phase I of Fairway Energy Partners’ Pierce Junction crude oil storage facility will come online, touting three caverns capable of socking away a combined 10 million barrels of black gold. That will represent 25 percent of the Houston market’s total crude storage capacity, and the privately held company has plans to expand to 20 million barrels.
“We are actively leasing to capacity right now and the marketplace is being received very favorably,” said Chris Hilgert, chief executive of Fairway. “We have a competitive cost advantage that we are trying to exploit as much as we can, and offer a much-needed service to a market that we feel needs more liquidity, which storage offers.”
HOUSTON — Such is the state of the oil industry these days that there is sometimes nowhere to put the oil. Off the coast of Texas, a line of roughly 40 tankers has formed, waiting to unload their crude or, in some cases, for a willing buyer to come along. Similar scenes are playing out off the coasts of Singapore and China and in the Persian Gulf.
There is little sign that the logjam will ease, as the price of oil continued its yearlong plunge this week, declining by nearly $10 a barrel.
The renewed collapse in crude prices is helping to again drive down gasoline prices for American drivers, to a national average of $2.19 a gallon for regular gasoline on Friday, according to the AAA motor club. That is 9 cents below the price a month ago and 73 cents below the price a year ago.
The slide in oil companies’ fortunes has been significant because of expanded production in Russia, Saudi Arabia and other Persian Gulf states, as well as a slowdown in demand growth in China and the expectation by commodity traders that the Iran nuclear deal will introduce large quantities of oil to the glutted market.
Having exposed the world yesterday to the 2-mile long line of tankers-full’o’crude heading from Iraq to the US, several weeks after reporting that China has run out of oil storage space we can now confirm that the global crude “in transit” glut is becoming gargantuan and is starting to have adverse consequences on the price of oil.
While the crude oil tanker backlog in Houston reaches an almost unprecedented 39 (with combined capacity of 28.4 million barrels), as The FT reports that from China to the Gulf of Mexico, the growing flotilla of stationary supertankers is evidence that the oil price crash may still have further to run, as more than 100m barrels of crude oil and heavy fuels are being held on ships at sea (as the year-long supply glut fills up available storage on land). The storage problems are so severe in fact, that traders asking ships to go slow, and that is where we see something very strange occurring off the coast near Galveston, TX.