Editorial comment
As 2026 gets underway, forecasts naturally emerge to assess the likely developments across the landscape for the forthcoming year, and oil prices are a key question within this discourse for operators across the industry. The Brent crude oil price is likely to fall over the course of 2026, and further in 2027, with the US Energy Information Administration (EIA) estimating an average price of US$58/bbl in 2026 and US$53/bbl in 2027, down from US$69/bbl in 2025.1 Despite turbulence across the globe placing upwards pressure on prices, such as growing stockpiles in China acting as a “secondary source of demand,” the Russia-Ukraine conflict, and now developments in Venezuela, the forecasts still remain low.1
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Oil inventories have been steadily increasing due to the combination of increased production alongside slowing growth in global petroleum demand. The OPEC+ members have been consistently meeting increasing production targets, while developments in low-carbon alternatives have equally been expanding. These two processes in tandem have led to the forecasted reduced prices, as whilst supply continues to grow, demand wavers, and such growing stores force oil prices down.
Alternative forms of energy have also witnessed heavy investment amid the global push for decarbonisation and ‘net-zero’. Biofuels and other lower-carbon alternatives to traditional fossil fuels, such as the rising use of electric vehicles, have challenged the use of conventional products and caused this reduced demand. Sustainable aviation fuel (SAF) and synthetic aviation fuel (e-SAF) are two key examples that are being posited as ways to decarbonise travel, especially across commercial aviation.
Potential changes to the nature of the fuels used across various sectors naturally prompts midstream operators to consider how the growth in alternative fuels from renewable sources and non-petroleum feedstocks may potentially affect their own operations. The way that the tank storage sector operates thus comes under consideration.
While many of the proposed low-carbon alternatives are being developed with consideration to existing infrastructure, demands for facilities are likely to change and many questions lie ahead for the sector as a result. SAF, for example, can be used in many standard engines but this does not mean that the storage of all forms of renewable fuels can be so easily integrated into existing infrastructure.
This issue of Tanks & Terminals directly considers and offers commentary on how storage infrastructure may change across terminal operations to adapt to such developments, with discussion from TEC Container Solutions (p. 57) dedicated to terminal operators as they consider how best to prepare their infrastructure for new bio-based liquids. Biofuels exhibit different behaviours compared to traditional sources, with their viscosity and volatility as two major factors for consideration, as operators must consider how requirements will differ for lower-carbon alternatives compared to conventional petroleum products.
While 2026 is poised to bring further challenges for the industry, as the sector grapples with questions of sustainability amid a challenging economic market, various solutions are being proposed and operators will have to navigate such waters. Balancing existing infrastructure against preparations for future sustainability requirements will be the key line that operators will need to tread to ensure efficient operations over the coming years.
