Salt Dome Storage | Natural Gas Storage | Crude Oil Storage

Salt Dome Storage
www.SaltDomeStorage.com

Salt Dome Storage * Crude Oil Storage * Natural Gas Storage

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Natural gas, crude oil and other fuels have been stored in underground salt domes and salt caverns for nearly seventy years. There are many reasons that salt domes and salt caverns are used for natural gas storage as well as crude oil storage and storage of other petroleum based hydrocarbons. Chief among these are that salt dome storage provide; energy/fuel efficiencies, security, safety, strategic supply solutions, ability to meet peak demand requirements, cost-savings and protection from; fire, vandalism, hurricanes, tornados, acts of terrorism and all with extremely low environmental risk.

Salt dome storage and salt caverns provides the lowest cost solution for crude oil storage and natural gas storage (and other hydrocarbons) and represents an environmentally-secure method for storing America's energy resources for very long periods of time. For example, storing crude oil in artificially-created salt caverns deep within the rock-hard salt costs historically about $3.50 per barrel in capital costs. Crude oil storage in above-ground tanks, by comparison, can cost $15 to $18 per barrel - or at least five times the expense. Because salt caverns are 2,000 to 4,000 feet below the surface, geologic pressures will seal any/all cracks that may develop in the salt formation, assuring that no crude oil leaks from the cavern. An added benefit is the natural temperature difference between the top of the caverns and the bottom - a distance of around 2,000 feet; the temperature differential keeps the crude oil continuously circulating in the caverns, giving the oil a consistent quality.

How are salt caverns created?

Salt caverns are "carved" from underground salt domes by a technology called "solution mining." Solution mining involves a process whereby a well is drilled into an underground salt formation and then injecting large volumes of fresh water. The water dissolves the salt. In creating the salt caverns, the dissolved salt was removed as brine and either re-injected into salt water disposal wells or, alternatively, may be piped several miles offshore into the Gulf of Mexico. By carefully controlling the pressure and direction of the freshwater injection process, salt caverns of very precise dimensions can be created.

How does salt dome storage contain the oil or natural gas?

Rock salt has a combination of characteristics that make it very attractive for the storage of crude oil and natural gas as well as other petroleum fuels. If the rock salt is relatively pure and does not contain significant amounts of other types of rock, it is generally impervious to both liquids and gases and inert to petroleum. Rock salt has a compression strength comparable to concrete under the weight of the overlying and surrounding rock. Rock salt will "move" like plastic to seal incipient fractures, and can be mined easily by dissolving it with water.

There are periods of time in peak periods of natural gas use, that a natural gas company (pipeline or LDC) may not be able to keep up with these peak demand periods. Natural gas storage is a way to help provide for the natural gas reserves or natural gas supplies that are needed during these peak demand periods. Having strategically-located natural gas storage capabilities can assist natural gas pipelines or LDCs provide the natural gas supply when their customers demand.

Recent governments studies conclude that demand for clean-burning natural gas has continued to rise. In the last 20 years, natural gas consumption has risen nearly 25%.

The Energy Information Administration (EIA) estimates there are over 2,100 Trillion cubic feet (Tcf) of "technically recoverable natural gas" reserves in the United States, as reported in the EIA's 2010 Annual Energy Outlook. In 2009, the United States used just over 22 Trillion cubic feet of natural gas, making the U.S. one of the global leaders in natural gas consumption. This means the U.S. has enough natural gas supply to last about 100 years.

With greater demand comes greater need to be able to store natural gas. In the past 20 years, natural gas storage has increased less than 5%. This creates a serious constraint that can impact our nation by failing to keep up with natural gas supply and demand. Existing natural gas storage facilities will not be able to keep up with the demand for natural gas during increasingly greater periods of increasing demand, which could cost all consumers of natural gas billions of dollars.

There is a critical need for new high-volume natural gas storage facilities to meet the escalating demand for natural gas which will provide predictability of natural gas supply and reduce or eliminate volatility of natural gas prices during peak periods. Natural gas storage "balance" the load - or supply and demand requirements of all natural gas consumers and provides the "cushion" needed for large supplies of natural gas to serve all consumers during periods of peak demand.

Natural gas storage can take place in a number of underground natural gas facilities. From the time the natural gas is produced, it may be stored temporarily in underground natural gas storage facilities that may be one or more of the following; depleted oil or natural gas fields/reservoirs, salt dome caverns/salt dome storage or former aquifers.

Most of the natural gas storage in the U.S. takes place in naturally-occurring natural gas or oil reservoirs that have been depleted through production. An underground gas storage facility must contain enough “base gas” or “cushion gas” that provides adequate pressure to re-produce and extract the natural gas.