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ESA helping to track oil movements amidst market chaos

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Technology developed by the European Space Agency (ESA) is helping bring some stability to today's chaotic oil market, by delivering satellite images of storage depots that tell traders exactly how much oil is currently in storage worldwide, writes Keith Nuthall.

With global demand for oil crashing to levels last seen in 2002, in the wake of the 11 September attacks on the US, and with Brent crude prices falling from $55.70/b in February to $20.53/b in April, ESA claims its satellite data help market players make sense of this turmoil. ‘The analysis allows producers, traders and governments to support the economy by taking informed decisions about the fuel that powers industry and heats homes,’ said an ESA note. 

ESA-equipped earth observation satellites use optical cameras with synthetic aperture radar instruments that can not only measure the diameter of storage tanks, but also pinpoint the height of their lids floating above their oil, minimising evaporation and toxic gas emissions. With storage units filled according to the amount of surplus oil stocks, these images ‘enable the volume of oil flowing into and out of the facility to be calculated’, according to ESA. The satellites can also detect signals from automatic identification systems aboard oil tankers when loading with oil and moving it between ports.

The images are being analysed by partner companies such as digital oil analytics company OilX and natural resources research company Terrabotics, both based in London, UK, providing updated market assessments, helping traders fix a realistic price, thereby reducing the risk of an oil supply glut.

Nick Appleyard, ESA’s Head of Downstream Business Applications, comments: ‘Insights gleaned from space can guide global industries and help businesses to improve the speed, accuracy and efficiency of their decisions. We can see oil storage filling up around the world, because we have brought more oil out of the ground than we want to use. The creative use of space data gives traders the information they need.’

Sentinel-1, one of ESA’s Copernicus satellites used to monitor the environment, including detecting and tracking oil spills, over COVID-19 hotspot Italy
Photo: ESA/DLR

News Item details


Journal title: Petroleum Review

Countries: Europe -

Subjects: Trading, Oil markets, Technology

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