New York takes action to secure petroleum supply chain


New York recently became the first state to launch its own strategic gasoline reserve.

A reliable flow of energy is essential to the functioning of the U.S. economy. From the fuel needed to power vehicles and industrial facilities to the paychecks and capital investments the industry provides to communities, it is clear that oil production equipment does far more than simply pump crude out of the ground.

In recognition of the importance of secure energy supplies, New York Governor Andrew Cuomo recently took action aimed at ensuring the stability of fuel supplies in the Empire State. New York's Strategic Gasoline Reserve, billed as the first state-based system of its kind, will reportedly hold up to 3 million gallons of fuel.

In a press release announcing the launch of the "Fuel NY" initiative, Cuomo said that the first reserve site, located on Long Island, will serve a pilot project for a program that is expected to be rolled out across the state in the coming years. The governor explained that he had been driven to develop the reserve system after seeing the impact that disrupted fuel supplies had on residents and business after Hurricane Sandy hit the region last year. He said that he hopes the strategic reserve "will prevent the days of long lines at gas stations if another storm hits."

"The gap in gasoline supplies during Superstorm Sandy was incredibly disruptive to the daily routines of New Yorkers who needed to get to school and work as well as the operations of businesses during an already difficult time," Governor Cuomo said. "Fuel NY will make our energy infrastructure stronger and better prepared than it ever was before."

Securing U.S. energy supplies will require investment in all parts of the supply chain

In addition to reinforcing storage and distribution infrastructure close to the consumer level, stakeholders in the upstream segment of the oil and gas supply chain will also need to make investments aimed at ensuring stability. For well operators, this may mean deploying new oil production equipment at their properties.

The hydraulic jet pump has emerged as a particularly useful solution. It is valued by producers for its power and versatility. Able to be deployed at straight, horizontal or deviated wells, this pump can be used to effectively initiate or resume production at a site, even in situations where problems with the completion of well casing would limit the effectiveness of other products.

Furthermore, with no downhole moving parts, the unit has minimal maintenance needs. When the jet pump needs to be retrieved for optimization or relocation, it can be extracted through manipulation of surface valves and reverse circulation of fluids, which means that there is no need to bring in a wire-line or work-over unit. These efficiencies translate into lower costs and higher output for well operators.