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Strategic Storage Policy of Petroleum by World Leading Country

Strategic Storage Policy of Petroleum by World Leading Country

Volatile Oil price is now leading & controlling the world economy and dismantle the socio-economic condition. Strategic storage policy by the world leading country might fire the situation and by this way a certain group will be benefited and will control the world economy as well.

Recently US declare strategic storage policy of oil means here at high price they will release oil and at low price, will purchase oil & store it. US have strategic storage capability of equivalent of about three-week consumable volume; consumption per day is about 20million barrel. US policy here at rate US$67-72/barrel they will purchase & store and will sell at higher price around US$90/barrel or more price look like money making business by state policy and may create chaos all over the world. It also indicates oil price will continue with big fluctuation of around US$65-90/barrel or even be the higher price range. UK also declared their storage policy on oil and gas and most of the European countries have sufficient storage capability.  


Ukraine-Russia war has also great impact on oil price instability. The geopolitical risk is one that will keep the oil and gas industry in a state of extreme uncertainty and volatility for some time to come. Ukraine war could last for decades. It is not a battle that will play out quickly, nor is the war in Ukraine going to end with any clear-cut victory or anytime soon. Because this is not a “world war”, there will not be a decisive winner and it will change the oil and gas industry for the long term.


The consequence of unpredictable oil market could be severe in upcoming days and Bangladesh might think same as the policy of world leading countries. However, Bangladesh does not have sufficient infrastructure of storage but whatever have might make a plan and policy on storage petroleum as fluctuation of international price. Petroleum storage policy might save from drain out of huge foreign currency. In this view we can be proactive by giving priority on oil storage in abandoned wells of onshore gas filed and abandoned wells of Sangu platform and connecting production pipeline from Sangu  to Chattagram. Time and tide wait for none.    

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