Select Offers Crude Oil Storage to Operators to Address Industry Storage Capacity Shortage
Select Energy Services, Inc. (NYSE: WTTR) (“Select” or “the Company”), announced today it is offering crude oil storage capabilities to operators through its high capacity above-ground storage tanks. The Company is the largest provider of mobile above ground storage tanks in the U.S., with storage volumes up to 62,000 barrels. This novel application of an established fluid storage system is intended to allow operators to temporarily and safely store and treat large volumes of crude oil in response to market storage limitations, and potentially reduce the instances of costly well shut-ins.
“We’re excited to provide the market with a viable solution during this critical period in our industry,” remarked Holli Ladhani, President and CEO of Select. “With oil prices at such low levels, this solution provides operators the opportunity to preserve the value of their assets in order to achieve a better price at a later date. It may also provide an alternative to shutting in certain wells that are expected to be relatively expensive to bring back on line at a later date.”
Along with tanks, Select is offering specialized liners and lids in order to reduce the environmental impact of storage and assist operators in complying with the various state and federal regulations. Additionally, the Company’s oilfield chemicals group offers the added benefit of crude treatment solutions to mitigate the impacts of prolonged storage. “The response we’ve seen already is exceeding our expectations,” stated Mitchell Shauf, Executive Vice President of Water Solutions at Select. “We provide the tanks, and operators divert production from the gathering line to the AST.” The company has procured a vapor capture system incorporated into the lid, allowing operators to easily connect tanks to existing vapor recovery systems. This provides a flexible solution to maximize well profitability and avoid wasting a precious resource.