Storage space hunt steps up as glut grows

An employee turns a valve at the Nahr Bin Omar natural gas field, north of the southern Iraqi port of Basra on April 21, 2020. (AFP)
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Updated 22 April 2020
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Storage space hunt steps up as glut grows

  • Crude is looking for a place to go as lockdowns wipe out about a third of global oil demand

NEW YORK: The telephone lines have been ringing at Adler Tank Rentals in Texas as oil companies have found a new use for steel tanks that had been left idle when shale producers stopped drilling — they want to use the tanks to store some of an oil glut that has overwhelmed the market and flipped US crude prices negative for the first time.

Hundreds of millions of barrels of crude have gushed into storage worldwide in the past two months as the coronavirus-related lockdowns wiped out around a third of global oil demand.
With oil depots that normally store crude oil onshore filling to the brim and supertankers mostly taken, energy companies are desperate for more space. The alternative is to pay buyers to take their US crude after futures plummeted to a negative $37 a barrel on Monday.
A topsy-turvy market that has oil prices for October delivery at $31 a barrel has oil firms anxious to sock away millions of barrels now to sell at a profit later.
In Cushing, Oklahoma, home to dozens of large tank farms with combined space for about 76 million barrels, operators are fully booked, said traders. Storage there jumped by 5.7 million barrels the week before last, according to the latest US Energy Information Administration (EIA).
While the government estimated there is available space, traders said Monday’s market drop indicated any unfilled tanks are under lease, and not available to new renters.
“The industry is really scrambling to source viable storage options,” said Stuart Porter, a manager at Adler Tank Rentals in Texas, which has shale companies lining up to potentially lease dozens of its 500-barrel steel frac tanks. The tanks can be lined up like dominos and filled at the well site by producers without a home for their oil.
Converge Midstream LLC, with millions of barrels of storage available in underground salt caverns outside Houston, has gone from few takers to requiring one- to two-year contracts.
“Quite honestly we were struggling for business. Now that the market has changed, everyone is our friend,” said Dana Grams, chief executive of Converge Midstream.
The hunt for storage points to the magnitude of the collapse in demand for US shale and the huge volume of unsold oil to refiners who are cutting purchases.

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US crude futures plummeted to a negative $37 a barrel on Monday.

Last month, OPEC and other producers including Russia threw in the towel on four years of self-imposed output curbs that gave US shale a price umbrella. The result was a drop in US oil prices to about $20 a barrel as Saudi Arabia and Russia pledged to pump full bore.
For a time, it looked like prices would stabilize after the pair and other nations this month agreed to deepen cuts. But crude stocks in the US rose by 19 million barrels overall the week before last, the EIA said, the biggest one-week increase in history, setting the stage for Monday’s historic decline.
In addition to the onshore glut, there are about 160 million barrels of oil sitting on tankers waiting for buyers. And at least six crude tankers carrying 2 million barrels apiece are en route to the US from Saudi Arabia, adding to the alarm at the US Gulf Coast.
It is not just crude looking for a place to go. State lockdowns have decimated demand for motor fuel. US gasoline demand fell 32 percent earlier this month compared with the same time a year ago, the EIA said. That glut is creating opportunities for some.
At Caliche Development Partners, which stores natural gas liquids in underground caverns near Houston, CEO Dave Marchese may shift his plans and open a newly completed 3-million-barrel underground salt-cavern for crude oil or gasoline.
“Gasoline has a pretty large contango right now,” he said, referring to prices five or more months ahead that are higher than current levels. But both fuels would require new pumps in its salt cavern, Marchese said, and he wants buyers to pay up for any upgrades.
Shale producer Teal Natural Resources had one of its three crude buyers cancel a purchase agreement last month, sending it shopping for frac tanks. They are not cheap, Teal CEO John Roby learned after scouring the market.
Storing a month’s worth of output would cost Teal about $20 a day per tank, or about $300,000 a month. At those rates, Teal would rather shut his wells, he said.
Shutting off wells is not for everyone, though, because it can reduce future oil recovery, and may put a producer in breach of their lease contracts.
Rentals for frac tanks have jumped from about $15 a day previously, a Texas oil marketer said.
Another oil producer, Texland Petroleum, aims to sell immediately whatever crude it can this month, said President Jim Wilkes. He is considering adding frac tanks to avoid having to pay to have his oil carried away in May. Joshua Wade, an oil marketer in Oklahoma, is in talks to reserve about 100,000 barrels of storage for May using a combination of frac tanks, on-system pipeline storage and smaller tanks that have been dormant on pipelines.
But time is running out and costs are rising quickly. “A lot of people have been calling me now and saying ‘I wanna go out and buy 100,000 barrels in May and put them in a frac tank,” Wade said. “I tell them the party started about a month ago and it’s now almost over,” he said.


Saudi youth turn to AI for art and culture

Updated 11 sec ago
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Saudi youth turn to AI for art and culture

  • Creativity, heritage and technology converge in a new generation of artists

RIYADH: As Saudi Arabia’s Vision 2030 places creativity, culture and technological innovation at the core of national development, the impact of these priorities is becoming increasingly visible across a wide range of disciplines and practices.

Through the use of artificial intelligence, young Saudis are integrating technology into their creative work both as a practical tool and as a medium in its own right. In doing so, they are expanding their capabilities, exploring personal and collective identity, and finding new ways to preserve and reinterpret cultural heritage.

“AI gives young Saudis a new way to interact with their own cultural inheritance,” said Dmitry Zaytsev, founder of Dandelion Civilization, a platform designed to help individuals shape unique professional paths.

“Traditional design elements such as calligraphy or geometric motifs were once difficult to modify. Experimentation required resources and formal approval. AI removes that barrier and makes exploration immediate. A creator can test many versions of a pattern and see which ones still feel authentic to them,” he told Arab News.

According to Zaytsev, this emerging form of expression does not signal a rejection of tradition, but rather a deeper engagement with it. “The young creator discovers what can change and what must remain constant. AI becomes a sketchbook that allows culture to evolve through curiosity rather than fear. When creators correct a model or push it toward local rhythm, they strengthen rather than dilute cultural identity,” he explained.

Sarah AlBaiz, an art adviser, researcher and artist, uses code to blend visual art with concepts drawn from culture and philosophy. While her early practice focused primarily on painting, her trajectory shifted during the 2020 AI Artathon, a pioneering international event highlighting collaboration between humans and machines in artmaking, where she discovered how to merge her engineering background with her creative work.

DID YOU KNOW?

• Saudi youth are using AI as a creative tool to reinterpret heritage, from calligraphy to folklore.

• AI is helping artists experiment faster without the traditional barriers of resources or formal approval.

• The Kingdom is backing creative AI nationally, with programs like SAMAI aiming to empower 1 million Saudis for an AI-driven future.

Operating within the field of computational creativity, where technology actively participates in the artistic process, AlBaiz explores themes of finance and faith. “Because they’re two sides of who I am,” she said. “When you talk about values, for example, that is both a term used in finance and trade from an objective perspective, but also moral and spiritual value.”

“When you understand prompting in AI, you can get it to produce almost anything. But it’s also informed by the training data it has,” she said.

Sarah Albaiz's "Diriyah II (2020)" melds a traditional Saudi landmark with the avant-garde. This generative artwork rejuvenates the historic Alsalwa Palace in Diriyah. By infusing Munira AlTheeb's artistry through GAN style transfer, the piece stands as a testament to the evolving narrative of Saudi heritage. (Supplied)ed2edde

Rather than relying on a single platform, AlBaiz experiments with multiple AI models to test their limitations and audience reception. “I work a lot with language as well, so large language models are right up my street when it comes to computational creativity.”ee

Her work has gained international recognition. At the 2022 Islamic Arts Biennale in Jeddah, she co-created an artwork under the banner of Super Artistic AI that generated Al-Qatt Al-Asiri motifs from southern Saudi Arabia. The piece received an Audience Award.

Beyond her artistic practice, AlBaiz is developing an intelligent art advisory system aimed at helping users navigate the Saudi art landscape. Designed as an initial point of contact, the system would guide users through potential pathways before they engage with a human adviser.

Inverting established gender norms, Sarah Albaiz's digital collage reimagines masculinity. Set against a generative backdrop, its core message "real men cry" challenges familial WhatsApp discourses. (Supplied)

“It’s about understanding what role AI plays in the pursuit of what you want,” she said. “When I decided to focus on Qantara and building the advisory, I recognized that many of the systems required would need to be intelligent systems that offload a lot of work from me and the team.”

“When AI is an enabler rather than the end result, it becomes less intimidating because it feels risk-free for the end user,” she added.

Zaytsev echoed this idea, describing AI as a kind of rehearsal space. “Young people practice conversations, explore sensitive topics and organize their thoughts without social risk. This builds emotional clarity and confidence,” he said.

While generative tools such as large language models attract much of the attention, AI’s creative applications extend far beyond text and image generation.

Fairooz Alawami, trained as both an architect and engineer, uses AI to create self-expressive visual works inspired by dance.

Fairooz AlAwami's work

“My practice is focused on contextualizing movement,” she said. “Because of my architectural training, I work with 3D modeling software called Rhino, which includes a visual coding language. Within that environment, you can also write code in Python, JavaScript or C#.”

Alawami employs OpenPose to analyze videos of her dancing by mapping points across her body. She then applies another computer vision model, MIDAS, which converts images or videos into depth frames. “If OpenPose gives me a skeleton, MIDAS gives me depth,” she explained. The resulting data is fed into 3D modeling software, where it is refined and manipulated into finished artworks.

She began dancing at a young age. “I didn’t find it, it found me,” she said. Movement later became the foundation of her artistic practice, leading to her first major project around three years ago while completing her master’s degree using the Grasshopper plugin. At the time, the workflow was slow and fragmented, but the arrival of ChatGPT helped streamline the process by making it easier to write and learn code.

“I think my love for dance and my love for art and design came together in a way that felt uniquely me,” she said. “Once I found that space, I just ran with it. It is my singular voice.”

Her work also draws heavily on cultural and musical heritage. One recent project was inspired by folklore referenced in the iconic song “Al Leila wa Leila” by Umm Kulthum. Alawami extracted musical stems from the track and mapped them to characters within the narrative. “The vocals were Shahrazad, the storyteller, and each stem represented a different narrative element,” she said. Earlier works were influenced by Islamic architecture and the geometric patterns found throughout Saudi Arabia and the wider Arab world.

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“There are some incredible artists using generative AI to do very impressive things, and I don’t think I fall into that camp,” she said. “For me, AI is more like a skills-gap tool that helps me reach where I want to go.

“As humans, whether we realize it or not, the act of creating feeds us in some way. Lowering the barrier to entry makes creativity less intimidating.”

Today, Saudi Arabia’s creative sector is supported by expanding national infrastructure. Initiatives such as the Cultural Scholarship Program place Saudi students in more than 60 universities worldwide, spanning disciplines from archaeology and literature to design, filmmaking and culinary arts. In parallel, the Kingdom launched the SAMAI initiative last year, aiming to equip 1 million Saudis with the skills needed to engage confidently in an AI-driven world.

Within Vision 2030, culture, tourism, digitalization and AI are treated as strategic sectors rather than peripheral concerns. As Saudi Arabia develops its creative economy as a form of soft power, its youth are becoming increasingly digitally fluent. AI tools are now embedded within creative workflows, enabling a new generation to explore heritage, remix traditional aesthetics and develop narratives that resonate on a global stage.