Storage Tank Financing

Every producing lease needs somewhere to put the oil before the truck picks it up. The tank battery is as fundamental to oil production as the wellhead itself, and operators who are starting up new wells, expanding production, or replacing aging tanks face a capital decision that often comes under time pressure tied to a completion or workover schedule. We finance production storage tanks, tank batteries, gun barrel treaters, and associated tank farm infrastructure for independent producers and oilfield service contractors across every active US basin.

Lease automatic custody transfer (LACT) units, atmospheric storage tanks from 200 barrels to 1,000 barrels and above, produced water storage, and multi-tank battery configurations: these are all routine financing requests. A standard 400-barrel steel production tank for lease storage runs running about $15k to $30k from a domestic manufacturer depending on specifications. A complete five-tank battery with piping, platforms, gauging, and secondary containment can reach $150,000 to $400,000 or more depending on the configuration and installation costs. When tank batteries are financed alongside other surface production equipment, the total package easily clears our $50,000 minimum as a single transaction.

What types of storage tanks and equipment qualify

The range of equipment we finance under the storage tank category is broader than just the steel tank itself. Qualifying assets include:

• Atmospheric production storage tanks, steel, fiberglass, or poly depending on the application
• Gun barrel and wash tank treaters used to separate oil, water, and emulsion
• Produced water storage tanks for holding flow-back or produced water pending transfer or disposal
• Multi-tank battery configurations with interconnecting piping and manifolds
• Secondary containment berms and liner systems, when financed as part of a broader tank installation
• LACT units and metering systems associated with tank farm operations
• Tank cleaning and remediation equipment owned by oilfield environmental service contractors

We also finance tanks for operators who are building out saltwater disposal facilities, including storage ahead of injection wells. That equipment overlaps with what saltwater disposal operators purchase for their commercial SWD facilities, and the financing structure is similar regardless of whether the tanks serve a private production facility or a commercial disposal site.

Why tank financing matters in the current market

Production storage infrastructure has become more capital-intensive as environmental regulations around secondary containment, tank integrity, and produced water management have tightened in active oil states. Operators who might have made do with older, non-compliant tanks a decade ago now face regulatory requirements for upgrades, lining, and containment that can push replacement projects well above what cash on hand can cover comfortably.

In the Permian Basin, water handling volumes associated with high-water-cut wells in certain formation intervals have driven demand for additional produced water storage capacity at the lease level, ahead of transfer to disposal. DJ Basin operators in Colorado face state-level regulations that have driven tank upgrades and spill prevention system requirements. The combination of operational need and regulatory pressure makes tank financing a recurring and predictable category.

Financing tank infrastructure alongside other surface production equipment is a common approach for operators who are equipping a new pad or upgrading an existing lease. The tank battery, the separator, and the artificial lift equipment can often be combined into a single financing package that covers the full surface production system. We connect tank financing with separator financing and heater-treater financing when operators are equipping a complete production facility.

Credit and documentation requirements for tank financing

Steel production tanks are solid collateral. They are durable, moveable, and have an active secondary market among used tank dealers and operators who buy surplus equipment. That collateral quality gives lenders comfort, particularly on smaller transactions, and translates to competitive financing terms for operators with reasonable credit profiles.

Short-form approval is available for storage tank packages under approximately $400,000. This covers the range of most single lease or small multi-well battery installations. We need the equipment list, the total purchase and installation price, and basic business information. The credit decision typically comes back in two to three business days.

Operators with credit scores below 700 can generally qualify under programs that place more weight on cash flow and less on the credit score itself. The B/C credit financing programs we access are familiar with the oilfield industry's history of credit volatility tied to commodity prices, and they evaluate current performance rather than treating past stress periods as permanent disqualifiers.

For new businesses or operators who are buying their first set of production tanks, demonstrating that the tanks will be placed on an active lease with producing wells provides the revenue backdrop lenders need. A lease operating statement or well production report from the leases being equipped adds meaningful documentation.

Many operators pair this with Oilfield Equipment Loans, Oil & Gas Equipment Leasing, and Equipment Sale-Leaseback.