Changing Crude Qualities and Their Impacts on U.S. Refinery Operations AM-14-42

Size: px
Start display at page:

Download "Changing Crude Qualities and Their Impacts on U.S. Refinery Operations AM-14-42"

Transcription

1 Changing Crude Qualities and Their Impacts on U.S. Refinery Operations Presented to: AFPM 2014 Annual Meeting March 25, 2014 by John M. Mayes

2 International consulting practice since 1971 Downstream focus; refinery/chemical engineers Industry and financial clients Strategic Studies FMV Assessments & Venture Analyses National Policy Studies TM&C Overview Publish various outlook and multi-client subscription reports World Crude Outlooks North American Crude & Condensate Outlook Crude and Refined Products Outlook Refinery Construction Outlook Special Studies 2

3 Today s Agenda North American Crude and Condensate Outlook Shale Crude Development Field Constraints Geographic Constraints Refining Bottlenecks Export Issues Final Thoughts 3

4 North American Crude & Condensate Outlook Regional forecasts in new TO and conventional areas Evaluation of refinery capabilities on a plant-by-plant basis Analysis of planned/required logistics Evaluate challenges and opportunities for producers, midstream companies and refiners Forecast pricing implications Initial publications June & October NACCO released in June 2014 edition to be released in September 4

5 Projected Production Volumes by 2022 U.S. Low Case 9.5 MMBPD High Case 12.0 MMBPD Canada 5.5 MMBPD Forecast Assumptions Absolute crude prices (Brent) remain in $80 to $120 range Key limitations (manpower, materials, regulatory, financial, etc.) Build out of crude transportation assets is critical Limited production from some high potential prospects High case requires significant crude exports 5

6 Crude Production Increases U.S to December ,200 1,000 Thousand BPD Eagle Ford Bakken Permian Basin Other Texas Other U.S. Oklahoma /Kansas Gulf of Mexico California Alaska Source: EIA 6

7 U.S. Crude Supply/Demand Million BPD Low High Refinery Runs 7

8 U.S. Crude Production Change by PADD 2013 to MBPD PADD I PADD II PADD III PADD IV PADD V Low High 8

9 Change in Crude Production by Grade 2013 to 2022 MBPD Condensate/ Light Sweet Light Sour Medium Heavy US Low US High Canada 9

10 Changing U.S. Crude Oil Sources Million BPD % 15% 25% 25% 54% 53% 41% 16% 10% 13% 66% 60% 36% 34% 43% High Low Forecast Domestic Canada Waterborne 10

11 Today s Agenda North American Crude and Condensate Outlook Shale Crude Development Field Constraints Geographic Constraints Refining Bottlenecks Export Issues Final Thoughts 11

12 Shale Crude Development The development of shale crudes has been characterized by a series of logistic and processing bottlenecks. Fields Geographic Refining Exports? Shale crude prices have been impacted whenever bottlenecks have been hit which in turn created the solution. 12

13 Shale Crude Development (cont.) Multiple supply modes have been utilized to relieve field bottlenecks. Bakken o Pipeline o Rail Eagle Ford o Pipeline o Vessel Permian Basin o Pipeline o Rail Athabasca o Pipeline o Rail 13

14 Shale Crude Development (cont.) U.S. pipeline system was constrained at Cushing, OK until Seaway Phase I 150 MBPD May 2012 Seaway Phase II 250 MBPD Jan Keystone 700 MBPD Dec Seaway Phase III 450 MBPD 2014 The Houston bottleneck was reduced in Dec with startup of Shell Ho-Ho pipeline (300 MBPD to St. James, LA). 14

15 Today s Agenda North American Crude and Condensate Outlook Shale Crude Development Field Constraints Geographic Constraints Refining Bottlenecks Export Issues Final Thoughts 15

16 Transition to Refining Bottleneck Interim period U.S. refining industry can generally absorb incremental light shale production when backing out light foreign imports. When foreign light imports have been eliminated, incremental shale production will replace foreign medium grades. The U.S. refining industry is not currently configured to process this volume of light crude. 16

17 PADD II Foreign Light Imports 250, ,000 BPD 150, ,000 50,000 0 Jan 2009 Jan 2010 Jan 2011 Jan 2012 Jan

18 PADD III Foreign Light Sweet Imports 1,600,000 1,400,000 1,200,000 BPD 1,000, , , , ,000 0 Jan 2009 Jan 2010 Jan 2011 Jan 2012 Jan

19 PADD I Foreign Light Imports 800, , ,000 BPD 500, , , ,000 Jan 2011 Jan 2012 Jan

20 PADD III Foreign Light Sour Imports 1,200,000 1,100,000 1,000, ,000 BPD 800, , , , ,000 Jan 2011 Jan 2012 Jan

21 Shale Development Timeline 2014 Light sweet imports into PADDS I-III will be eliminated 2015 Light sour imports down to structural minimums 2015/16+ Crude exports to begin? Medium imports down to structural minimums based on Saudi crude strategy 21

22 Shale Crude vs Displaced Light Imports Property Bakken Eagle Ford Eagle Ford Cond. Brent Bonny Light API Gravity Sulfur, wt% Distillation Yield, volume % Lt. Ends, C 1 -C Naphtha Middle Distillates Gas Oil Vacuum Residue

23 Announced Major Refinery Upgrades Upgrade Cost Refinery Millions Crude Valero Houston Eagle Ford Flint Hills Corpus Christi 250 Eagle Ford Marathon Catlettsburg 145 Utica 23

24 Quality of U.S. Crude Oil Production API Gravity Low Cases Sulfur, wt. % API Gravity Sulfur, wt. % 24

25 API Gravity of U.S. Refinery Crude Slate High Crude Forecast API Gravity Low Crude Forecast API Gravity 25

26 Refinery Yield Impacts Dumbbelling of Crude Slate Higher LPG and naphtha Lower middle distillate Resid yields up in Canadian heavy crudes; still generally lower than in Latin heavy Implications Higher LPG yield adds to surplus from field production Higher naphtha/lower distillate yields runs counter to demand growth patterns Will lead to increasing exports of LPG s/gasoline; decreasing ability to export diesel Light naphtha surplus a particular issue some can be used as diluent for Can. bitumen Remedies Construction of hydrocracking units very capital intensive Development of LPG/NGL, light naphtha and gasoline export markets Export of particularly problematic crudes export limitations; condensate splitting Incentivize high distillate yielding GTL projects 26

27 Today s Agenda North American Crude and Condensate Outlook Shale Crude Development Field Constraints Geographic Constraints Refining Bottlenecks Export Issues Final Thoughts 27

28 U.S. Crude Oil Exports Thousand BPD 1,800 1,600 1,400 1,200 1, History High Production Case with exports Canada Other 28

29 Crude Exports By 2022, N.A. crude production vs. refinery runs will be close to balanced (~18.0 vs MM BPD) if crude exports are allowed. Crude exports of ~2.0 MM BPD: Necessary to balance against structural imports from PDVSA, Pemex, S.A. etc. Mostly from Eagle Ford, Permian and ANS Canadian will export from both coasts (dependent on midstream expansion) Crude access/logistics will continue to be key margin determinant Export policy decisions critical 29

30 Today s Agenda North American Crude and Condensate Outlook Shale Crude Development Field Constraints Geographic Constraints Refining Bottlenecks Export Issues Final Thoughts 30

31 Final Thoughts NA Boom in Crude Production Significant game changer with international implications Well decline rates in some tight oil formations are 80%+ but production growth will continue for several years before reaching a plateau Permian has the most long-term potential Ability to export crude will be key to continued growth Implications for U.S. Refining Sector Less expensive crude Lower natural gas cost Adds to existing advantages higher complexity, developed infrastructure, more flexible work force to make U.S. refineries the most competitive in the world Facilitates Ability to Export Products Requirement due to Declining Domestic Demand U.S. transitions from big net importer to large net exporter Sustainable trend; increased competitiveness of U.S., growing demand in developing countries; lack of success in building/running refineries 31

32 Final Thoughts (Cont.) U.S. Crude Boom Also Presents Challenges Will require downstream capex along with investment outside refinery gates Major impact on refinery yields/product balances more gasoline/less diesel Particularly long on light naphtha/condensate Quality of new production (mostly shale) major unknown Threats to Product Export Model Growing dependence on volatile markets in Latin America and elsewhere Dependent on continuing difficulty of countries to supply own demand Increasing volumes of gasoline more difficult to place Threats from other export refineries SATORP/Jubail, YASREF/Yanbu, others Potential of U.S. export restrictions; unlikely despite political posturing Regulatory/Policy Issues U.S. policy on crude exports RFS Ethanol Blendwall/RIN Costs/Increasing volumes of alternatives Potentially more restrictive CAFE standards Tier 3 Rules More investment/increased costs Carbon restrictions tax/cap and trade/lcfs Other XL pipeline approval?/ls heating oil, bunker fuel/jones Act 32

33 John M. Mayes Turner, Mason & Company 2100 Ross Ave., Suite 2920 Dallas, Texas turnermason.com

The Changing North American Crude Market: Impacts to/from the U.S. Refining Complex

The Changing North American Crude Market: Impacts to/from the U.S. Refining Complex The Changing North American Crude Market: Impacts to/from the U.S. Refining Complex Presented to: North American Refining Conference June 9, 2015 Houston, TX John R. Auers, P.E. Executive Vice President

More information

Pre U.S. Crude Boom (~2007/2008)

Pre U.S. Crude Boom (~2007/2008) Pre U.S. Crude Boom (~2007/2008) Export regulations irrelevant. Refinery Utilization 90 80 70 60 50 40 30 20 10 0 U.S. Production Canadian Imports Saudi Imports Other Light & Medium WB Imports Heavy Waterborne

More information

B A K E R & O B R I E N

B A K E R & O B R I E N B A K E R & O B R I E N I N C O R P O R A T E D Q3 : U. S. Refining Margins Remain Robust Special Topic: Domestic Light Oil Processing in the U.S. Gulf Coast Have We Hit the Limit? Houston, October 30,

More information

Defining the Debate: Crude Oil Exports

Defining the Debate: Crude Oil Exports Defining the Debate: Crude Oil Exports Trisha Curtis, Director of Research Upstream and Midstream Energy Policy Research Foundation, Inc. (EPRINC) Brookings Task Force February 28th, 214 About EPRINC www.eprinc.org

More information

US Shale Liquids Surge: Implications for the Crude Oil Value Chain

US Shale Liquids Surge: Implications for the Crude Oil Value Chain US Shale Liquids Surge: Implications for the Crude Oil Value Chain Praveen Gunaseelan Vantage Point Advisors Matt Thundyil Transcend Solutions COQA Spring Meeting Houston March 2012 Transcend Solutions

More information

Stronger than the others

Stronger than the others Stronger than the others Natural gasoline demand, markets, and pricing Maria Mejia, NGL Analyst September 29, 2014 2014 Platts, McGraw Hill Financial. All rights reserved. Bentek Energy is a leader in

More information

Like a Box of Chocolates The Condensate Dilemma. 3rd Annual NGLs Forum

Like a Box of Chocolates The Condensate Dilemma. 3rd Annual NGLs Forum Like a Box of Chocolates The Condensate Dilemma 3rd Annual NGLs Forum E. Russell Braziel RBN Energy, LLC September 23, 2013 Tsunami of Condensates Mb/d 1,600 1,400 1,200 1,000 800 600 400 200 0» Historically

More information

Methodology. Supply. Demand

Methodology. Supply. Demand Methodology Supply Demand Tipping the Scale 1 Overview Latin America and the Caribbean, a major petroleum product importing region, provides an important counterbalance to surpluses in refined product

More information

Crude Export and the New Dynamics

Crude Export and the New Dynamics 27 April 2016 Crude Export and the New Dynamics Mel Larson, Principal Consultant SUPERIOR RESULTS. SUSTAINED. Topics of Interest Crude Export Impact The Great Divide Export to everywhere The US Advantage

More information

Asphaltene Precipitation in Domestic Sweet. Ron Fisher BP, Refining and Logistics Technology June 11, 2015

Asphaltene Precipitation in Domestic Sweet. Ron Fisher BP, Refining and Logistics Technology June 11, 2015 Asphaltene Precipitation in Domestic Sweet Ron Fisher BP, Refining and Logistics Technology June 11, 2015 Overview Precipitated asphaltenes can cause storage tank and heat exchanger fouling, desalter upsets,

More information

The Rapidly Changing NA Crude Market Key Issues/Focus on the Downstream

The Rapidly Changing NA Crude Market Key Issues/Focus on the Downstream The Rapidly Changing NA Crude Market Key Issues/Focus on the Downstream Presented at 2015 Peters & Co. Energy Conference Lake Louise, Alberta January 21-23, 2015 John R. Auers Turner, Mason & Company TM&C

More information

OCTANE THE NEW ECONOMICS OF. What Drives the Cost of Octane and Why Octane Costs Have Risen Since 2012 T. J. HIGGINS. A Report By:

OCTANE THE NEW ECONOMICS OF. What Drives the Cost of Octane and Why Octane Costs Have Risen Since 2012 T. J. HIGGINS. A Report By: THE NEW ECONOMICS OF OCTANE What Drives the Cost of Octane and Why Octane Costs Have Risen Since 2012 A Report By: T. J. HIGGINS Contents Foreword... 1 1. Executive Summary... 2 2. Tracking the Changing

More information

Turmoil in Refining The Shakeout Continues

Turmoil in Refining The Shakeout Continues Turmoil in Refining The Shakeout Continues OPIS National Supply Summit Las Vegas, Nevada October 22 24, 2012 John B. O Brien Executive Chairman Baker & O Brien, Inc. All rights reserved. Conclusions from

More information

DOWNSTREAM PETROLEUM 2017 DOWNSTREAM PETROLEUM

DOWNSTREAM PETROLEUM 2017 DOWNSTREAM PETROLEUM DOWNSTREAM PETROLEUM International and Asian Refining The global refining industry is fundamentally changing as emerging and maturing trends re-shape the global supply and demand patterns for crude oil

More information

The Shifting Ground in US Crude Markets. Houston, TX April 15, 2013

The Shifting Ground in US Crude Markets. Houston, TX April 15, 2013 The Shifting Ground in US Crude Markets Houston, TX April 15, 2013 Agenda Will production growth in Texas, Bakken, etc. overwhelm domestic demand? New Markets Eagle Ford, Permian to the USGC, Bakken to

More information

Market Report Series Oil 2018

Market Report Series Oil 2018 Market Report Series Oil 218 Norwegian Ministry of Energy, 17 April 218 Neil Atkinson, Head of Oil Industry and Markets Division Toril Bosoni, Senior Oil Market Analyst, Oil Industry and Markets Division

More information

Operating Refineries in a High Cost Environment. Options for RFS Compliance. March 20, Baker & O Brien, Inc. All rights reserved.

Operating Refineries in a High Cost Environment. Options for RFS Compliance. March 20, Baker & O Brien, Inc. All rights reserved. Operating Refineries in a High Cost Environment Options for RFS Compliance March 2, 217 Baker & O Brien, Inc. All rights reserved. Discussion Points Introduction Renewable Fuels Standard (RFS) Overview

More information

U.S. Crude Exports and Impact on Trade

U.S. Crude Exports and Impact on Trade U.S. Crude Exports and Impact on Trade 32 nd Annual Asia Pacific Petroleum Conference Dr. Helen Currie Senior Economist September 7, 2016 Cautionary Statement The following presentation includes forward-looking

More information

The Changing Face of Global Refining

The Changing Face of Global Refining The Changing Face of Global Refining OPIS National Supply Summit Las Vegas, Nevada October 24-26, 2010 John B. O Brien, Executive Chairman Baker & O Brien, Inc. All rights reserved. The Changing Face of

More information

Turner, Mason & Company

Turner, Mason & Company 6 Turner, Mason & Company International consulting practice since 1971 Downstream focus; refinery/chemical engineers Industry and financial clients Publish various outlook and forecast products Crude and

More information

MERTC 23 rd 24 th January, 2017 Manama, Kingdom of Bahrain

MERTC 23 rd 24 th January, 2017 Manama, Kingdom of Bahrain Future Challenges and Needs of the Refining Industry MERTC 23 rd 24 th January, 2017 Manama, Kingdom of Bahrain Dr. Dawood Nassif Board Director, BAPCO D. Nassif MRTC, January, 2017 Refiner s Challenges

More information

Featuring: Tom Kloza, Oil Price Information Service (OPIS) SPONSORED BY.

Featuring: Tom Kloza, Oil Price Information Service (OPIS) SPONSORED BY. THE OUTLOOK OF FUEL Featuring: Tom Kloza, Oil Price Information Service (OPIS) SPONSORED BY TH E NATSO SHOW 2013 FEB 3-7 SAVANNAH, GA. www.opisnet.com tkloza@opisnet.com 1 Presentation By: Tom Kloza OPIS,

More information

Highlights from the Argus Americas Crude Summit January 23-25, Dennis Sutton

Highlights from the Argus Americas Crude Summit January 23-25, Dennis Sutton Highlights from the Argus Americas Crude Summit January 23-25, 2013 Dennis Sutton Forward-Looking Statements This presentation contains forward looking statements within the meaning of the Private Securities

More information

North American Storage and Transportation Trends

North American Storage and Transportation Trends North American Storage and Transportation Trends Brian Busch Director, Oil Markets and Business Development www.genscape.com 2016 Genscape Incorporated. All rights reserved. What we do 2 Current State

More information

The Transition to Low Sulfur Bunker Fuel

The Transition to Low Sulfur Bunker Fuel 2016: 5th Opportunity Crudes Conference The Transition to Low Sulfur Bunker Fuel NA Crude Oil Summit April 10-11, 2017 Houston, Texas John Mayes Director of Special Studies Turner, Mason & Company 2020

More information

U.S. Rail Crude Oil Traffic

U.S. Rail Crude Oil Traffic U.S. Rail Crude Oil Traffic Association of American Railroads November 215 Summary U.S. crude oil production has risen sharply in recent years, with much of the increased output moving by rail. In 28,

More information

What Do the Impending New Bunker Specs Mean for Refiners

What Do the Impending New Bunker Specs Mean for Refiners What Do the Impending New Bunker Specs Mean for Refiners John Mayes Director of Special Studies Turner, Mason & Company 2016: 5th Opportunity Crudes Conference 1 2020 Bunker Fuel Requirements Upcoming

More information

AN ECONOMIC ASSESSMENT OF THE INTERNATIONAL MARITIME ORGANIZATION SULPHUR REGULATIONS

AN ECONOMIC ASSESSMENT OF THE INTERNATIONAL MARITIME ORGANIZATION SULPHUR REGULATIONS Study No. 175 CANADIAN ENERGY RESEARCH INSTITUTE AN ECONOMIC ASSESSMENT OF THE INTERNATIONAL MARITIME ORGANIZATION SULPHUR REGULATIONS ON MARKETS FOR CANADIAN CRUDE OIL Canadian Energy Research Institute

More information

Downstream Petroleum Sector The Growing Prominence of Asian Refining

Downstream Petroleum Sector The Growing Prominence of Asian Refining Downstream Petroleum Sector The Growing Prominence of Asian Refining Mr. Fahad Al-Dihani Deputy CEO,MAA Refinery, Kuwait National Petroleum Company-Kuwait Outline.. Global refining trends Kuwait s Position

More information

Market Report Series Oil 2018 Analysis and Forecasts to Columbia University Centre on Global Energy Policy, New York, May 22 nd 2018

Market Report Series Oil 2018 Analysis and Forecasts to Columbia University Centre on Global Energy Policy, New York, May 22 nd 2018 Market Report Series Oil 218 Analysis and Forecasts to 223 Columbia University Centre on Global Energy Policy, New York, May 22 nd 218 Robust global oil demand growth to 223 1.8 1.6 1.4 1.2 1..8.6.4.2.

More information

US Refining Industry: Forecasts, Capacity, Challenges

US Refining Industry: Forecasts, Capacity, Challenges US Refining Industry: Forecasts, Capacity, Challenges Crude Oil Quality Group Cindy Schild, API February 26, 2009 Overview Prices, Earnings & Forecasts Domestic Refinery Industry Capacity Environmental

More information

Changes to America s Gasoline Pool. Charles Kemp. May 17, Baker & O Brien, Inc. All rights reserved.

Changes to America s Gasoline Pool. Charles Kemp. May 17, Baker & O Brien, Inc. All rights reserved. Changes to America s Gasoline Pool Charles Kemp May 17, 2016 Baker & O Brien, Inc. All rights reserved. Discussion Points Light Naphtha Definitions Sources and Uses of Light Naphtha Octane Challenges Tier

More information

Market Report Series: Oil 2018 Analysis & Forecasts to Energy Community 10 th Oil Forum, Belgrade, 25 September 2018

Market Report Series: Oil 2018 Analysis & Forecasts to Energy Community 10 th Oil Forum, Belgrade, 25 September 2018 Market Report Series: Oil 218 Analysis & Forecasts to 223 Energy Community 1 th Oil Forum, Belgrade, 25 September 218 Short term update: crude prices (excl. WTI) up strongly Aug/Sep $/bbl 8 Benchmark Crude

More information

Implications Across the Supply Chain. Prepared for Sustainableshipping Conference San Francisco 30 September 2009

Implications Across the Supply Chain. Prepared for Sustainableshipping Conference San Francisco 30 September 2009 Implications Across the Supply Chain Prepared for Sustainableshipping Conference San Francisco 30 September 2009 Agenda Residual Markets & Quality Refinery Bunker Production Supply & Pricing 2 World marine

More information

UBS Global Oil and Gas Conference May 22, Joe Gorder Executive Vice President Marketing and Supply

UBS Global Oil and Gas Conference May 22, Joe Gorder Executive Vice President Marketing and Supply UBS Global Oil and Gas Conference May 22, 2008 Joe Gorder Executive Vice President Marketing and Supply 2008 Year-to-Date Performance Raised annual dividend rate by 25% to $0.60 per share Purchased more

More information

Implications of Residual Fuel Oil Phase Out

Implications of Residual Fuel Oil Phase Out Implications of Residual Fuel Oil Phase Out David J. Ramberg and Sam A. Van Vactor IAEE 37 th International Conference June 18, 2014 1 How will refiners adapt to phase-out of highsulfur fuel oils? 1. 2010

More information

Refining Outlook: elements for a modern industrial culture in Italy

Refining Outlook: elements for a modern industrial culture in Italy Refining Outlook: elements for a modern industrial culture in Italy Stefano Donzelli Foster Wheeler 24/10/12 Le strategie di mercato e di procurement per la filiera dell impiantistica italiana 1 Foreword

More information

US Shale Oil Development and Impact on Aromatics Supplies

US Shale Oil Development and Impact on Aromatics Supplies US Shale Oil Development and Impact on Aromatics Supplies Chuck Venezia Vice President, Petrochemicals Argus DeWitt September 23, 2014 The Shale revolution in the US has changed global market dynamics

More information

For Region 5 and Region 7 Regional Response Teams Meeting April 22, 2015 St. Charles, Missouri via video/teleconference

For Region 5 and Region 7 Regional Response Teams Meeting April 22, 2015 St. Charles, Missouri via video/teleconference For Region 5 and Region 7 Regional Response Teams Meeting St. Charles, Missouri via video/teleconference By Grant Nülle, Upstream Oil & Gas Economist, Exploration and Production Analysis Team U.S. Energy

More information

Wyoming: At the Crossroads of the Boom

Wyoming: At the Crossroads of the Boom Wyoming: At the Crossroads of the Boom Trisha Curtis Director of Research, Upstream and Midstream Energy Policy Research Foundation, Inc. (EPRINC) Wyoming Pipeline Authority October 15th, 213 Thousand

More information

The effects of increasing access to the U.S. Gulf Coast on global and North American price spreads

The effects of increasing access to the U.S. Gulf Coast on global and North American price spreads The effects of increasing access to the U.S. Gulf Coast on global and North American price spreads Presented by: John Homan Marketing and Logistics Representative, Laricina Energy Ltd. Crude Oil Markets,

More information

Recent Developments in EU Refining and in the Supply and Trade of Petroleum Products

Recent Developments in EU Refining and in the Supply and Trade of Petroleum Products Recent Developments in EU Refining and in the Supply and Trade of Petroleum Products Third Meeting of the EU Refining Forum Brussels, 22 May 2014 Toril Bosoni, International Energy Agency OECD/IEA 2014

More information

U.S. Natural Gas Outlook The 3rd London Gas & LNG Forum September 26 and 27, 2016 The Rag Army & Navy Club London

U.S. Natural Gas Outlook The 3rd London Gas & LNG Forum September 26 and 27, 2016 The Rag Army & Navy Club London U.S. Natural Gas Outlook The 3rd London Gas & LNG Forum September 26 and 27, 216 The Rag Army & Navy Club London Lucian Pugliaresi Energy Policy Research Foundation, Inc. Washington, DC 1 About EPRINC!

More information

TANK BARGE OPPORTUNITIES RELATED TO CRUDE OIL PRODUCTION & MOVEMENT

TANK BARGE OPPORTUNITIES RELATED TO CRUDE OIL PRODUCTION & MOVEMENT TANK BARGE OPPORTUNITIES RELATED TO CRUDE OIL PRODUCTION & MOVEMENT Third Edition A SPECIAL INDUSTRY STUDY Prepared by: November 2014 775 Ridge Lake Boulevard, Suite 400 ~ Memphis, Tennessee 38120-9403

More information

U.S. Rail Crude Oil Traffic

U.S. Rail Crude Oil Traffic U.S. Rail Crude Oil Traffic Association of American Railroads May 217 Summary U.S. crude oil production has risen sharply in recent years, with much of the increased output moving by rail. In 28, U.S.

More information

Performing In A Volatile Oil Market

Performing In A Volatile Oil Market Performing In A Volatile Oil Market Matti Lehmus Executive Vice President, Oil Products Capital Markets Day Key Trends Impacting Refining Margins Demand growth to resume after steep drop Supply growth

More information

Drilling in North America s Low Oil Price Environment

Drilling in North America s Low Oil Price Environment Drilling in North America s Low Oil Price Environment AMM 8 th Steel Tube & Pipe Conference March 10, 2015 Nicole Leonard, Bentek Energy 2014 Platts, McGraw Hill Financial. All rights reserved. Key Takeaways

More information

Global Refining: Fueling Profitability in the Turbulent Times Ahead. Sponsored by:

Global Refining: Fueling Profitability in the Turbulent Times Ahead. Sponsored by: Global Refining: Fueling Profitability in the Turbulent Times Ahead Sponsored by: The Outlook for Energy: A View to 24 Roland L. Moreau ExxonMobil Upstream Research Company Hart Energy Breakfast Club February

More information

Downstream. Mike Wirth. Executive Vice President Downstream Chevron Corporation

Downstream. Mike Wirth. Executive Vice President Downstream Chevron Corporation Downstream Mike Wirth Executive Vice President Downstream What We Delivered in 2006 Base Business Record safety Record utilization Record energy efficiency Record earnings - $4 Billion Selective Growth

More information

Changing Refinery Configuration for Heavy and Synthetic Crude Processing

Changing Refinery Configuration for Heavy and Synthetic Crude Processing Changing Refinery Configuration for Heavy and Synthetic Crude Processing Gary Brierley UOP LLC 2006 UOP LLC. All rights reserved. UOP 4525A-01 Why Should I Even Think About Running Synthetics? Oil sands

More information

Adam Bedard, CEO ARB Midstream, LLC Midstream View on Rail. June 2, 2015

Adam Bedard, CEO ARB Midstream, LLC Midstream View on Rail. June 2, 2015 Adam Bedard, CEO ARB Midstream, LLC Midstream View on Rail June 2, 2015 ARB Midstream Overview Growth oriented, infrastructure development company focused on early stage, organic development projects Provide

More information

Petroleum and Natural Gas Outlook

Petroleum and Natural Gas Outlook Petroleum and Natural Gas Outlook Energy Summit 26: Developing and Supporting Critical Energy Infrastructures at the LSU Center for Energy Studies Baton Rouge, Louisiana October 2, 26 A. Michael Schaal,

More information

The Changing U.S. Refining Landscape Past, Present and Future

The Changing U.S. Refining Landscape Past, Present and Future The Changing U.S. Refining Landscape Past, Present and Future John R. Auers, P.E. Executive Vice President Energy and the Economy Federal Reserve Bank of Dallas Dallas, TX September 7, 2018 U.S. Refining

More information

Global Downstream Petroleum Outlook

Global Downstream Petroleum Outlook Global Downstream Petroleum Outlook Claude Mandil Executive Director International Energy Agency 3 rd OPEC International Seminar Vienna, 12 September 26 Spare Refinery Capacity Has Tightened 9 1% 85 95%

More information

Regional Refining Outlook

Regional Refining Outlook Regional Refining Outlook Implications for Crude Demand Platts Crude Summit 15 May 213 David Wech JBC Energy GmbH 13 th May 213 Research - Energy Studies - Consulting - Training Disclaimer All statements

More information

VTTI. Storage Markets : Our Perspective. StocExpo Europe March Onur Capan: Market Intelligence

VTTI. Storage Markets : Our Perspective. StocExpo Europe March Onur Capan: Market Intelligence VTTI Storage Markets : Our Perspective Onur Capan: Market Intelligence StocExpo Europe March 2017 VTTI track record at its 10 th anniversary VTTI has grown in 10 years to be one of the largest global independent

More information

Implications of the U.S. Shale Revolution

Implications of the U.S. Shale Revolution Implications of the U.S. Shale Revolution For October 17, 214 Chicago, Illinois By Adam Sieminski, Administrator U.S. Energy Information Administration U.S. Energy Information Administration Independent

More information

Growing U.S. Light Crude Exports and IMO 2020 Driven Discounts: Who Benefits?

Growing U.S. Light Crude Exports and IMO 2020 Driven Discounts: Who Benefits? Growing U.S. Light Crude Exports and IMO 2020 Driven Discounts: Who Benefits? OPPORTUNITY CRUDES CONFERENCE OCTOBER 22, 2018 Baker & O Brien, Inc. All rights reserved. Legal Notice Baker & O Brien, Inc.

More information

Trinidad and Tobago Energy

Trinidad and Tobago Energy Trinidad and Tobago Energy Conference 2017 Advantages of Vertical Integration in a Low Oil Price Environment Astor Harris Vice President Refining and Marketing 2017 January 24 Market Fundamentals 1Q13

More information

Compliance with IMO Regulations - New Strategies for Refiners in the U.S. and Internationally

Compliance with IMO Regulations - New Strategies for Refiners in the U.S. and Internationally 14 th Annual Bunker and Residual Fuel Conference Compliance with IMO Regulations - New Strategies for Refiners in the U.S. and Internationally Aaron Imrie June 20, 2017 Houston, Texas Baker & O Brien,

More information

Canadian Bitumen and Synthetic Crudes

Canadian Bitumen and Synthetic Crudes Understanding the Quality of Canadian Bitumen and Synthetic Crudes Pat Swafford Spiral Software Limited Crude Oil Quality Group Meeting February 26, 2009 Introduction Canadian crude production is increasing

More information

European Energy Union Impact on the Refining & Petrochemical Business. John Cooper, Director General Budapest, 13th October 2015

European Energy Union Impact on the Refining & Petrochemical Business. John Cooper, Director General Budapest, 13th October 2015 European Energy Union Impact on the Refining & Petrochemical Business John Cooper, Director General Budapest, 13th October 2015 FuelsEurope represents 42 Member Companies 100% of EU Refining Page 2 AGENDA

More information

The Shale Boom Heard Around the World

The Shale Boom Heard Around the World The Shale Boom Heard Around the World Ben Montalbano Director of Research and Operations Energy Policy Research Foundation, Inc. (EPRINC) Clingendael Institute November 5, 2013 Is this the wrong question?

More information

Residue Upgrading Technologies Key Technologies, Considerations & Options for your Refinery Russia BBTC 2015 MOSCOW

Residue Upgrading Technologies Key Technologies, Considerations & Options for your Refinery Russia BBTC 2015 MOSCOW Residue Upgrading Technologies Key Technologies, Considerations & Options for your Refinery Russia BBTC 2015 MOSCOW Colin CHAPMAN April 2015 Euro Petroleum Consultants PRESENTATION SUMMARY - RUSSIA BBTC

More information

Exxon Bets on Downstream U.S. Returns Beaumont refinery expansion complements Permian investment.

Exxon Bets on Downstream U.S. Returns Beaumont refinery expansion complements Permian investment. ? Exxon Bets on Downstream U.S. Returns Beaumont refinery expansion complements Permian investment. Morningstar Commodities Research March. 12, 2018 Sandy Fielden Director, Oil and Products Research +1

More information

Growing U.S. Oil and Gas Production Set to Reshape Competitive Position of U.S. Refineries

Growing U.S. Oil and Gas Production Set to Reshape Competitive Position of U.S. Refineries Growing U.S. Oil and Gas Production Set to Reshape Competitive Position of U.S. Refineries Prepared by: Charles G. Kemp March 2013 Baker & O Brien, Inc. 12001 N. Central Expressway, Suite 1200 Dallas,

More information

Refining Trends and Outlook

Refining Trends and Outlook Refining Trends and Outlook Presented by: Greg Kort, P.E., ASA 2018 TXOGA PROPERTY TAX REPRESENTATIVES ANNUAL CONFERENCE March 7, 2018 www.ryan.com Agenda Hurricane Harvey Tax Cuts and Jobs Act of 2017

More information

April Título da apresentação DD.MM.AAAA

April Título da apresentação DD.MM.AAAA Aquisition of Shell Argentina downstream assets April 2018 Título da apresentação DD.MM.AAAA DISCLAIMER This presentation contains estimates and forward-looking statements regarding our strategy and opportunities

More information

WRITTEN STATEMENT OF AMERICAN FUEL & PETROCHEMICAL MANUFACTURERS AS SUBMITTED TO THE COMMITTEE ON ENERGY AND NATURAL RESROUCES. United States Senate

WRITTEN STATEMENT OF AMERICAN FUEL & PETROCHEMICAL MANUFACTURERS AS SUBMITTED TO THE COMMITTEE ON ENERGY AND NATURAL RESROUCES. United States Senate WRITTEN STATEMENT OF AMERICAN FUEL & PETROCHEMICAL MANUFACTURERS AS SUBMITTED TO THE COMMITTEE ON ENERGY AND NATURAL RESROUCES United States Senate on United States Crude Export Policy March 19, 2015 1

More information

Strategic Factors Impacting The California Crude Oil Market. About Purvin & Gertz, Inc. California Independent Petroleum Association

Strategic Factors Impacting The California Crude Oil Market. About Purvin & Gertz, Inc. California Independent Petroleum Association Strategic Factors Impacting The California Crude Oil Market Hyatt Regency Huntington Beach Mike Sarna Eric Wei Long Beach Office 1 About Purvin & Gertz, Inc. Privately-Owned, Independent International

More information

Thursday, March 6, 2014 Houston, TX. 8:30 9:40 a.m. AN ECONOMIST S-EYE VIEW OF THE ENERGY INDUSTRY: HYDROCARBON HAT TRICK

Thursday, March 6, 2014 Houston, TX. 8:30 9:40 a.m. AN ECONOMIST S-EYE VIEW OF THE ENERGY INDUSTRY: HYDROCARBON HAT TRICK Thursday, March 6, 214 Houston, TX 8:3 9:4 a.m. AN ECONOMIST S-EYE VIEW OF THE ENERGY INDUSTRY: HYDROCARBON HAT TRICK Presented by Jesse Thompson Business Economist Federal Reserve Bank of Dallas, Houston

More information

Can Small Refineries Succeed in North Dakota and Texas? Economics favor larger operators.

Can Small Refineries Succeed in North Dakota and Texas? Economics favor larger operators. ? Can Small Refineries Succeed in North Dakota and Texas? Economics favor larger operators. Morningstar Commodities Research July 9, 2018 Sandy Fielden Director, Oil and Products Research +1 512 431-8044

More information

STATUS OF THE U.S. REFINING INDUSTRY

STATUS OF THE U.S. REFINING INDUSTRY STATUS OF THE U.S. REFINING INDUSTRY October 2005 BAKER & O BRIEN Incorporated, All Rights Reserved REFINING VITAL LINK IN THE OIL SUPPLY CHAIN Crude Oil Supply & Logistics Products Distribution & Marketing

More information

Downstream & Chemicals

Downstream & Chemicals Downstream & Chemicals Mark Nelson Executive Vice President Downstream & chemicals portfolio Fuels refining & marketing Focused, regional optimization Petrochemicals Advantaged feed, scale and technology

More information

CRUDE BY RAIL REFINER S PERSPECTIVES. Presented by Joseph Israel, February 2013

CRUDE BY RAIL REFINER S PERSPECTIVES. Presented by Joseph Israel, February 2013 CRUDE BY RAIL REFINER S PERSPECTIVES Presented by Joseph Israel, February 2013 2 Background Profitability Profile Refinery profitability profile is driven by: Location Feedstock and production parity points

More information

IMPACTS OF THE IMO SULPHUR REGULATIONS ON THE CANADIAN CRUDE OIL MARKET

IMPACTS OF THE IMO SULPHUR REGULATIONS ON THE CANADIAN CRUDE OIL MARKET IMPACTS OF THE IMO SULPHUR REGULATIONS ON THE CANADIAN CRUDE OIL MARKET CERI Breakfast Overview Allan Fogwill, CEO Canadian Energy Research Institute November 2018 Overview Canadian Energy Research Institute

More information

Investor Presentation. September 2015

Investor Presentation. September 2015 Investor Presentation September 2015 Safe Harbor Statement Statements contained in this presentation that state the company s or management s expectations or predictions of the future are forward looking

More information

The Alliance October 23, 2008

The Alliance October 23, 2008 The Alliance October 23, 2008 Energy Security Erec Isaacson Vice President, Commercial Assets ConocoPhillips Alaska, Inc. Cautionary Statement FOR THE PURPOSES OF THE SAFE HARBOR PROVISIONS OF THE PRIVATE

More information

Rice Global E&C Forum August 9, 2013

Rice Global E&C Forum August 9, 2013 Rice Global E&C Forum August 9, 2013 Midyear Forecast: July 1, 2013 Conglin Xu, Senior Editor-Economics Laura Bell, Statistics Editor Alan Petzet, Chief Editor-Exploration Forecast & Review: Jan. 7, 2013

More information

U.S. Crude Oil: The Upside & The Other Side

U.S. Crude Oil: The Upside & The Other Side U.S. Crude Oil: The Upside & The Other Side Greg Haas ghaas@hartenergy.com Director of Research, Integrated Oil & Gas Houston, Texas March 13, 2014 Disclaimer Reports by Hart Energy Research & Consulting,

More information

Energy Security of APEC Economies in a Changing Downstream Oil Environment

Energy Security of APEC Economies in a Changing Downstream Oil Environment IEEJ Feb. 2018 4th APEC OGSN Forum on 7 March 2018 Session2-2 Energy Security of APEC Economies in a Changing Downstream Oil Environment Takashi MATSUMOTO and Ichiro KUTANI Manager, Global Energy Group

More information

Light-Heavy Crude Oil Outlook: Implications for Coker Margins

Light-Heavy Crude Oil Outlook: Implications for Coker Margins Light-Heavy Crude Oil Outlook: Implications for Coker Margins Argus U.S./Canada Asphalt 2009 April 1, 2009 Ben Schrader ben.schrader@bakerobrien.com BAKER & O BRIEN Incorporated, All Rights Reserved Disclaimer

More information

Analysts Briefing. 23 August 2016

Analysts Briefing. 23 August 2016 Analysts Briefing 23 August 2016 1 Disclaimer This presentation contains forward looking statements concerning the financial condition, results and operations of The New Zealand Refining Company Limited

More information

The Supply of Oil. Projections to Oil and the Macroeconomy in a Changing World Federal Reserve Bank of Boston June 9, 2010 Boston, MA

The Supply of Oil. Projections to Oil and the Macroeconomy in a Changing World Federal Reserve Bank of Boston June 9, 2010 Boston, MA The Supply of Oil Projections to 2035 Oil and the Macroeconomy in a Changing World Federal Reserve Bank of Boston June 9, 2010 Boston, MA Howard Gruenspecht, Deputy Administrator Near-term oil price uncertainty

More information

The Impact of Shale Oil Production Growth in the US

The Impact of Shale Oil Production Growth in the US The Impact of Shale Oil Production Growth in the US Presentation to IMSF, Copenhagen By Selena Yan, Senior Analyst www.clarksons.com Disclaimer The material and the information (including, without limitation,

More information

Fuel Focus. Understanding Gasoline Markets in Canada and Economic Drivers Influencing Prices. Issue 20, Volume 8

Fuel Focus. Understanding Gasoline Markets in Canada and Economic Drivers Influencing Prices. Issue 20, Volume 8 Fuel Focus Understanding Gasoline Markets in Canada and Economic Drivers Influencing Prices Issue 20, Volume 8 October 18, 2013 Copies of this publication may be obtained free of charge from: Natural Resources

More information

ASPHALT SUPPLY IN A VOLATILE OIL WORLD. Bill Haverland ConocoPhillips Company

ASPHALT SUPPLY IN A VOLATILE OIL WORLD. Bill Haverland ConocoPhillips Company ASPHALT SUPPLY IN A VOLATILE OIL WORLD Bill Haverland ConocoPhillips Company Issues to be Discussed Crude Oil Supply Crude Oil Pricing Refining Capacity Products Supply Products Pricing Future of the Industry

More information

A summary of national and global energy indicators. FEDERAL RESERVE BANK of KANSAS CITY

A summary of national and global energy indicators. FEDERAL RESERVE BANK of KANSAS CITY THE U.S. Energy DATABOOK A summary of national and global energy indicators JULY 1, 17 FEDERAL RESERVE BANK of KANSAS CITY SUMMARY OF CURRENT ENERGY CONDITIONS The number of total active drilling rigs

More information

REFINING SOLUTIONS IN A CHANGING WORLD RFG, RFS, SULFUR, BENZENE, TIER 3 AND BEYOND

REFINING SOLUTIONS IN A CHANGING WORLD RFG, RFS, SULFUR, BENZENE, TIER 3 AND BEYOND REFINING SOLUTIONS IN A CHANGING WORLD RFG, RFS, SULFUR, BENZENE, TIER 3 AND BEYOND Thomas R. Hogan, P.E. Senior Vice President January 22, 2015 Turner, Mason & Company Privately held established 1971

More information

Q Analyst Teleconference. 9 August 2018

Q Analyst Teleconference. 9 August 2018 9 August 218 Disclaimer This presentation contains forward-looking statements that reflect the Company management s current views with respect to certain future events. Although it is believed that the

More information

Emerging Trends in Petroleum Markets

Emerging Trends in Petroleum Markets Emerging Trends in Petroleum Markets For Defense Logistics Agency, Worldwide Energy Conference Washington, D.C. By T. Mason Hamilton, Petroleum Markets Analyst U.S. Energy Information Administration Independent

More information

ASPHALT SUPPLY IN A VOLATILE OIL WORLD

ASPHALT SUPPLY IN A VOLATILE OIL WORLD ASPHALT SUPPLY IN A VOLATILE OIL WORLD Bill Haverland ConocoPhillips Baxter Burns Ergon CRUDE OIL SUPPLY A WORLD LOOK Crude Oil Supply (2006) World Crude Oil Production Millions of Barrels Per Day FSU/E.

More information

ASPHALT SUPPLY IN A VOLATILE OIL WORLD. Bill Haverland ConocoPhillips Company

ASPHALT SUPPLY IN A VOLATILE OIL WORLD. Bill Haverland ConocoPhillips Company ASPHALT SUPPLY IN A VOLATILE OIL WORLD Bill Haverland ConocoPhillips Company Issues to be Discussed Crude Oil Supply Crude Oil Pricing Refining Capacity Products Supply Products Pricing Future of the Industry

More information

PRISM TM Refining and Marketing Industry Analysis

PRISM TM Refining and Marketing Industry Analysis PRISM TM Refining and Marketing Industry Analysis PRISM is a trademark of Baker & O Brien, Inc. All rights reserved. Baker & O Brien, Inc. All rights reserved. Baker & O Brien Overview History Founded

More information

POINTS TO COVER UNCONVENTIONAL OIL AND GAS AND THE SHALE REVOLUTION: GAME CHANGER 4/16/2014. If we don t screw it up! Context Implications Risks

POINTS TO COVER UNCONVENTIONAL OIL AND GAS AND THE SHALE REVOLUTION: GAME CHANGER 4/16/2014. If we don t screw it up! Context Implications Risks UNCONVENTIONAL OIL AND GAS AND THE SHALE REVOLUTION: GAME CHANGER If we don t screw it up! POINTS TO COVER Context Implications Risks April 11 1 You can always count on Americans to do the right thing

More information

Converting Visbreakers to Delayed Cokers - An Opportunity for European Refiners

Converting Visbreakers to Delayed Cokers - An Opportunity for European Refiners Converting Visbreakers to Delayed Cokers - An Opportunity for European Refiners European Coking.com Conference Sept. 30 - Oct. 2, 2008 Alex Broerse Lummus Technology a CB&I company Overview Introduction

More information

Refining & Marketing. Mario Taraborrelli COO

Refining & Marketing. Mario Taraborrelli COO Refining & Marketing Mario Taraborrelli COO Disclaimer This presentation contains forward-looking statements regarding future events and the future results of Eni that are based on current expectations,

More information

Terminals Jeff Armstrong

Terminals Jeff Armstrong Terminals Jeff Armstrong KMT - 2002 Legend Dry Bulk Locations Liquid Locations 2 KMT - 2004 (4) (4) (4) Legend Transload Operations Dry Bulk Locations Liquid Locations 3 Liquids Terminals Pasadena Terminal

More information

Issues to be Discussed ASPHALT SUPPLY IN A VOLATILE OIL WORLD. Crude Oil Supply (2006) CRUDE OIL SUPPLY. Crude Oil Demand CRUDE OIL PRICING

Issues to be Discussed ASPHALT SUPPLY IN A VOLATILE OIL WORLD. Crude Oil Supply (2006) CRUDE OIL SUPPLY. Crude Oil Demand CRUDE OIL PRICING 6 SEAUPG CONFERENCE - WILMINGN, NORTH CAROLINA Issues to be Discussed ASPHALT SUPPLY IN A VOLATILE OIL WORLD Bill Haverland ConocoPhillips Company Crude Oil Supply Crude Oil Pricing Refining Capacity Products

More information

Downstream & Chemicals

Downstream & Chemicals Downstream & Chemicals Pierre Breber Executive Vice President 017 Chevron Corporation Downstream portfolio Fuels refining & marketing Integrated value chains Lubricants & additives Globally positioned

More information