Using 2009 USGC cost functions, and assumed off-site cost of 30%, capitalized interest of 10%, 4.5 million barrels storage, and storage cost of $38/bbl, replacement cost new is estimated at $2 billion (Table 17).
The final barrel, a storage or flush tank, perches above the other two like a toilet tank.
Though countrywide production has fallen to a trickle compared with the pre-war rate of 1.6m barrels a day, the rebel-controlled Arabian Gulf Oil Company (Agoco) says it has 1m barrels in storage and is pumping 100,000 b/d.
The 19-terminal network that Hess is selling, which stretches along the East Coast, has about 28 million barrels of storage capacity.
Plains All American, a subsidiary of Houston-based Plaits Resources Inc., said it would acquire about 450 miles of pipelines, 1.1 million barrels of storage and terminal capacity, and 121 crude transport trailers.
Once accustomed to the dusky light, you see that the space is basically an old barrel-vaulted storage cellar that's been tidied up to resemble a kind of ersatz Mexico: tile frescos of hot rods and hotties, wallpaper promoting tag-team wrestlers, T-shirts commemorating the 1970 World Cup.
For instance, President Clinton said last month that he was still considering whether to release crude oil from the strategic reserve, 600 million barrels in storage in Texas and Louisiana that was set aside by a 1975 law for use in a national emergency.
After all, we have over 700 million barrels in storage bought and paid for by all of us.
