HOUSTON, July 30, 2012 /PRNewswire/ -- In a new research report entitled Refining Unconventional Oil – Unconventional Resources Invigorate Mature Industry, Hart Energy Research analyzes and projects the inter-dependent regional fundamentals of rising unconventional tight and shale oil production poised to make (or not make) their way through U.S. crude pipelines and new rail tanker logistics to the nation's existing refineries. The report also analyzes natural gas demand in energy-intensive refineries to quantify and compare the upside margin impact of low-cost shale gas.
Hart Energy found that by 2016, upstream producers and midstream operators will redraw the map for U.S. petroleum production and transportation. Nearly 2 million barrels per day (mmb/d) of new shale and tight oil production is coming, along with more than 9 mmb/d of crude oil pipeline projects, 54 crude-by-rail terminals (adding 4.5 mmb/d of coast-to-coast deliverability), and nearly 40 million barrels of new Gulf Coast crude oil storage capacity. Refiners are following suit with capacity expansion or contractions of their own.
"Unconventional oil production is concentrated in areas not ideally aligned with legacy pipelines and refining infrastructure," said Greg Haas, lead author of the study. "The resultant advantages, or disadvantages, downstream vary by location. If all that crude is delivered to the southern refining fleet, the onrush could remake the Gulf Coast into the 'Cushing Coast' with rising stockpiles, sated refineries, insufficient outbound pipeline capacity, and discounted crude prices."
The report, available in hard copy or electronic versions with spreadsheet datafiles and map images, offers an independent, integrated, comprehensive and transparent analysis segmented for standard U.S. petroleum regions (PADDs). Key U.S. unconventional oil plays covered in this analysis include:
- Bakken / Three Forks
- Eagle Ford
- Anadarko / Woodford
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SOURCE Hart Energy