I not too long ago wrote a solution to a query asking why does the US import oil if it manufacturing is at such highs, sufficient to depress international oil costs.
I had written that, traditionally, the oil transport capacity of the US producers branched out from the Gulf of Mexico to different parts of the nation and that new pipeline and transport capacity needed to be created to assist the shale oil producers.
You may read the answer right here:The US now produces greater than ample oil to fulfill domestic need, why can we spend billions month-to-month to import oil?
RBN Energyhas the first of a sequence of posts on pipeline and transport capability up on its blogs:
New pipelines to extend crude oil takeaway capability from main producing areas just like the Permian and the Bakken to oil storage and distribution hubs like Houston, TX and Cushing, Ok appear to garner most of the media consideration. Simply exterior the spotlight glare, although €?and even during the continued stoop in oil costs €?midstream companies are constructing several emand-pullpipelines to maneuver crude to refineries extra efficiently, and to provide refineries easier, cheaper entry to new, desirable supplies. Immediately, we start a have a look at these new pipeline connections, their rationales, and their results on other pipelines, barge deliveries and crude-by-rail.
Say eystone XL,nergy Eastor, more not too long ago, akota Accessand youl grab headlines and eyeballs. But say iamond,addoor aurepasand youl probably get clean stares from folks outside the crude market. This latter group of hub-to-refinery pipelines (and others like them) are undoubtedly second-tier (if that) within the public mind, and for good purpose: they’re generally shorter and smaller in capacity, and they are designed to move oil the final miles to where it is refined into gasoline, diesel and other petroleum products. Nonetheless, these demand-pull pipelines, whose development is typically instigated by refiners on the lookout for an financial edge and/or higher access to sure varieties of crude, punch above their weight, and are essential elements in midstreamerspipeline portfolios. In this weblog sequence, wel consider the tranche of hub-to-refinery pipeline projects now being constructed €?why they’re advancing now, what advantages they may present their refinery sponsors, and how their development is more likely to have an effect on different infrastructure (pipelines, barge and rail offloading amenities) already in place to ship crude within the refineriesneighborhoods. A couple of things are important to think about up-front. One is that U.S. refineries €?and a lot of the crude oil delivery property that provide them €?were built years (in many circumstances decades) before the phrases hale Revolutionhave been first uttered. (As an illustration, the first models in Valero Energy Memphis refinery €?present photo beneath €?were in-built 1941.
