Underground Storage Area

Definition - What does Underground Storage Area mean?

An Underground Storage Area is a facility that is developed by petroleum organizations or countries to store crude oil and petroleum products beneath the earth's surface. Underground storage of crude oil and petroleum products is a part of strategic crude oil storage of a country. The purpose of building such areas is to provide a strategic advantage to a country in times of shortage of crude oil and refined products, or in times of war ensuring that a country remains self-dependent.

Petropedia explains Underground Storage Area

There are various strategic crude oil storage areas which are developed underground. Most countries develop underground storage areas in order to ensure their energy security and trade crude oil to other countries in times of shortage. Crude oil and petroleum products that are stored in these underground storage areas are sometimes also referred as emergency crude oil and petroleum products. These areas are constructed generally in underground rock caverns and are located near coastal areas so as to provide flexible means for connecting a country with its commercial oil transport network. These strategic underground storage areas can be internally connected to oil refineries through interstate pipelines and have a storage capacity ranging from 5 to 50 million barrels of oil.

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