Canada firms say 68 million bbl in salt domes possible in U. S. strategic petroleum reserve program by 1986
According to Home Oil Co. Ltd. and Gulf Canada Ltd., the firms could have 68 million bbl of crude oil in salt dome storage by 1986, but would require quick U.S. Department of Energy approval of the project and would have to begin work in 1980. The firms feel that Canadian storage of U.S. crude oil would spread out strategic supplies that are now concentrated around the U.S. gulf coast and that agreements can be negotiated to ensure the U.S. of unlimited access to the crude oil. The project, which has been scaled down from the original capacity of 120 million bbl, would involve washing out salt deposits underlying the southern part of Cape Breton Island, north of the Strait of Canso. Gulf and Home are planning to build a new dock east of Gulf's Point Tupper refinery and to lay pipelines from there to two salt deposits. About 22 caverns would be involved, each able to hold > 3 million bbl of oil. The caverns would be 1000-2000 ft below the surface. The cost is estimated at $575 million. The peak construction period would be late 1980 through 1982. According to Gulf and Home, a preliminary study showed that release of brine from cavern excavation into the Strait of Canso would not have serious environmental effects. Map.
- OSTI ID:
- 6513616
- Journal Information:
- Oil Gas J.; (United States), Vol. 77:32
- Country of Publication:
- United States
- Language:
- English
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