Posted on 06/24/2013 9:21:11 PM PDT by 2ndDivisionVet
(VIDEO-AT-LINK)
New pipelines are beginning to carry a glut of domestic crude from the middle of the country to Texas' Gulf Coast, boosting the fortunes of the area's big refineries and further fueling a decline in oil imports.
Magellan Midstream Partners' Longhorn pipeline began shipping oil from West Texas to Houston in April—the first of at least seven pipeline projects that could send as much as two million barrels a day from oil-saturated choke points in Oklahoma and the interior of Texas to the largest concentration of refineries in the country. But domestic oil production is at such a high level that the Gulf Coast refineries won't be able to process all of the crude.
The pipelines, all set to come online by the end of next year, mark a new phase in the U.S. oil boom.
Hydraulic fracturing has pushed U.S. oil output to its highest level in 17 years, but without adequate pipelines, much of the crude has been trapped at storage facilities, including domestically produced light, sweet crude at the massive storage hub in Cushing, Okla.
Because that Oklahoma crude is relatively stranded, its price is depressed compared with prices of oil stored in other parts of the U.S. and in Europe. But with the new pipelines, as well as increased use of rail cars and barges to move crude, Cushing prices are expected to rebound.(continued)
(Excerpt) Read more at online.wsj.com ...
that map probably resembles the veins in algore’s forehead.
Fracking is going great in NE Ohio.
The trains are running again and people are employed.
Oddly people there are fighting it.
I guess they don’t want that prosperity.
I love the sound of those rails going clickety clack, that distant whooot....
Sounds like prosperity.
As the son of a Texas oilman, this makes my chest swell with pride.
I used to build oil well caps there when I was a kid.
I like it.
we have a long history.
Sohio, Pennzoil, Quaker State
Yes! Bring it!
We need some new refineries.
You can sure feel the difference with all the new drilling here in the Permian Basin. I sell my oil to Navajo and they used to guarantee a 24 hour pickup now it’s 3 to 4 days. On my new wells their getting 3 500 barrel oil tanks intead of the normal two. Some of my locations can get bad when it rains and delays pickup a few more days. Twice this year I’ve had to shut in a few wells due to the delay.
And I sure wish they would quit talking about fracing like it some kind of new process, we’ve been doing it longer than I’ve been alive, I turn 63 in November.
It appears there’s three things going on. fracking,horizontal drilling and some really ingenious software that cuts down significantly on the number of dry wells.
Why do you think that? We already refine more crude oil than we use ourselves.
We need some new refineries.
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http://www.eia.gov/dnav/pet/pet_pnp_unc_dcu_nus_m.htm
http://www.eia.gov/dnav/pet/pet_pnp_cap1_dcu_nus_a.htm
The article says that gulf coast refiners don't have the capacity to refine the light sweet that these pipelines will be carrying. The excess capacity there is for heavy oil that previously came from Venezuela and will be used for the Alberta oil after Keystone is built.
In the meantime, the Cushing glut becomes the gulf coast glut and they will put that on rail cars bound for the east coast refiners.
Eventually, after the decision on LNG exports is made, they will ask the feds to raise export levels on oil so this oil can exported.
So if all that goes according to Hoyle, we will raise exports of oil plus raise exports of refined product generated from the Alberta oil.
Export Baby, Export.
That isn't quite what they said.
However, Texas refiners won't be able to take full advantage of the influx of U.S. oil, most of which is of the variety known as light sweet. That is because many of those refineries were modified years ago to also deal with heavier crudes from Mexico, Venezuela and Saudi Arabia, preventing significant portions of their plants from refining light crude.
"It's rare to find a refinery down there that can take the majority of its crude" from the U.S. supply of light, sweet oil, said Cowen Securities analyst Sam Margolin.
Just as the refineries were first modified to take advantage of cheaper heavy oil from overseas, they can be modified again if there is cheaper, light sweet available locally.
Eventually, after the decision on LNG exports is made, they will ask the feds to raise export levels on oil so this oil can exported.
We won't be in a position to significantly export oil, until we have essentially replaced our imports with domestic production. We got quite a ways to go.
We won't build more refineries, unless we either export more refined product, or shut down more existing refineries.
Pipelines have proven to be the safest and most economical method for over 100 years, as I understand it.
Yes your are right sir, but you know, regulations and A$$holes in Washington.
There are other ways, all more costly and less safe.
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