I recently wrote an answer to a question asking why does the US import oil if it manufacturing is at such highs, sufficient to depress world oil costs.
I had written that, historically, the oil transport capacity of the US producers branched out from the Gulf of Mexico to other elements of the country and that new pipeline and transport capability had to be created to help the shale oil producers.
You possibly can learn the reply here:The US now produces greater than enough oil to fulfill domestic need, why do we spend billions month-to-month to import oil?
RBN Energyhas the primary of a collection of posts on pipeline and transport capacity up on its blogs:
New pipelines to increase crude oil takeaway capability from major producing areas just like the Permian and the Bakken to oil storage and distribution hubs like Houston, TX and Cushing, Okay appear to garner a lot of the media attention. Just outside the spotlight glare, though 鈥撯€?and even throughout the continued slump in oil costs 鈥撯€?midstream companies are building several emand-pullpipelines to maneuver crude to refineries extra effectively, and to present refineries simpler, cheaper entry to new, desirable provides. Right now, we start a look at these new pipeline connections, their rationales, and their effects on other pipelines, barge deliveries and crude-by-rail.
Say 鈥淜eystone XL,鈥淓nergy Eastor, extra just lately, 鈥淒akota Accessand you鈥檒l seize headlines and eyeballs. However say 鈥淒iamond,鈥淐addoor 鈥淢aurepasand you鈥檒l in all probability get blank stares from of us outside the crude market. This latter group of hub-to-refinery pipelines (and others like them) are definitely second-tier (if that) in the public mind, and for good purpose: they’re usually shorter and smaller in capacity, and they’re designed to move oil the final miles to where it is refined into gasoline, diesel and other petroleum products. Still, these demand-pull pipelines, whose growth is typically instigated by refiners looking for an economic edge and/or better entry to certain types of crude, punch above their weight, and are necessary components in midstreamerspipeline portfolios. On this blog collection, we鈥檒l consider the tranche of hub-to-refinery pipeline projects now being constructed 颅颅 鈥撯€?why they’re advancing now, what advantages they’ll provide their refinery sponsors, and how their development is prone to affect other infrastructure (pipelines, barge and rail offloading facilities) already in place to ship crude in the refineriesneighborhoods. A number of issues are necessary to consider up-entrance. One is that U.S. refineries 鈥撯€?and many of the crude oil supply belongings that supply them 鈥撯€?have been built years (in lots of instances decades) earlier than the words 鈥淪hale Revolutionhad been first uttered. (For instance, the primary units in Valero Energy Memphis refinery 鈥撯€?present picture below 鈥撯€?have been inbuilt 1941.