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Crude oil pipelines in North America: a current perspective
07/06/2022![Crude-oil-pipelines-in-North-America-a-current-perspective](https://images2.rextag.com/public/blog/74blog__Crude_oil_pipelines_in_North_America_a_current_perspective.png)
Being the main means of transferring crude oil around the world, pipelines rapidly convey oil and its derivative products (gasoline, jet fuel, diesel fuel, heating oil, and heavier fuel oils) to refineries and empower other businesses.
The U.S. and Canada solely make North America a major oil hub for more than 90,000 miles of crude oil and petroleum product pipelines, which are connected to more than 140 refineries daily processing about 20 million barrels of oil.
All data provided in this article are based on Rextag's application to demonstrate crude oil pipelines and refineries across the U.S. and Canada.
Compared to 2010, U.S. crude oil production has increased more than twice: from 5.4 to 11.5 million barrels a day. Therefore, newly produced oil obliged energy companies to expand their pipeline networks, but it has only increased by 56%. According to the latest data, Plains manages the largest pipeline network across the U.S. and Canada (its diameter is at least 10 inches) which is the 14,919-mile network that spans from the northwestern tip of Alberta down to the southern coasts of Texas and Louisiana.
Other companies with the largest length of pipeline networks are Enbridge Energy Partners LP (12,974 miles), which transports about 30% of the crude oil produced in North America., then Sunoco Inc. (6,409 miles), MPLX LP (5,913 miles), and Lotus Midstream (5,767 miles).
The place where all these various spreading pipeline networks carry crude oil is refineries, where it is transformed into different petroleum products. Gulf Coast (PADD 3) possesses several refineries with the largest throughput in North America that process more than 500,000 barrels per day. They are located in the states of Louisiana and Texas: Motiva Enterprises (607,000 bpd), Marathon Petroleum in Galveston Bay (585,000 bpd), Marathon Petroleum in Garyville (578,00 bpd), ExxonMobil in Baytown and Baton Rouge (560,000 and 518,000 respectively).
It is important to admit that Texas and Louisiana have six refineries that process more than 400,000 barrels per day, nevertheless, there are only two facilities outside of these states with the same throughput: Whiting, Indiana (435,000 bpd) and Fort McMurray, Alberta (465,000 bpd).
However, Fort McMurray’s facility is an upgrader, which upgrades heavy oils like bitumen into lighter synthetic crude oil which flows through pipelines more easily, that is why it differs, as lots of oil refineries are not able to directly convert bitumen, consequently it makes upgraders an obligatory part in the production and processing of crude oil from oil sands.
Not only does the development of new pipelines give a plethora of opportunities for economic growth but also it remains a contentious issue in Canada and the U.S., with the cancellation of the Keystone XL pipeline emblematic of growing anti-pipeline sentiment. In 2021, only 14 petroleum liquids pipeline construction plans were completed in the U.S., which is considered the lowest amount of new pipelines and expansions ever since 2013.
Since the U.S. has banned Russian oil imports and Russia’s impending export of raw materials, domestic energy production is needed as never. It turned out that North American consumers are now facing surging gasoline and energy prices as foreign oil is proving to be far less reliable in times of geopolitical mess.
Anti-pipeline sentiment did not come out unexpectedly as leaks and spills in just the last decade have resulted in billions of dollars of damages. From 2010 to 2020, the Pipeline and Hazardous Materials Safety Administration reported 983 incidents that resulted in 149,000 spilled and unrecovered barrels of oil, even five fatalities, 27 injuries, and more than $2.5B in damages.
Fortunately, over the last five years, liquid pipeline incidents have decreased by 21% while pipeline mileage and barrels delivered have grown by more than 27%. In addition to these infrastructure improvements, pipeline developers and operators stress the lack of better alternatives, as freight and seaborne transportation are both far less efficient and result in more carbon emissions.
Meanwhile, pipelines stay vital components of energy consumption all over the U.S. and Canada, and as global energy markets meet supply squeezes, sanctions, and geopolitical turmoil, the focus on them has increased.
If you are looking for more information about energy companies, their assets, and energy deals, please, contact our sales office mapping@hartenergy.com, Tel. 619-349-4970 or SCHEDULE A DEMO to learn how Rextag can help you leverage energy data for your business.
U.S. Refineries: Lake Charles, Lemont, Wood River, Rodeo San Francisco, Los Angeles and TOP Operators
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U.S. crude oil refining capacity experienced a notable boost this year, climbing 1.5% to reach 18.38 million barrels per day. The recent expansion includes Exxon Mobil's Beaumont, Texas, refinery, which underwent a significant increase of approximately 250,000 barrels per day. As of the start of 2023, there were 124 active oil refineries nationwide. After a two-year downturn due to decreased demand during the COVID-19 pandemic, U.S. refining capacity saw a significant rebound. In 2023 alone, capacity surged by over 100,000 barrels per day to reach 18.1 million, although this still trails the peak of 18.98 million barrels per day seen in 2019.
How Grinch Almost Made Off with All Oil from Santa's TX-based Barrels
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It's beginning to look a lot like Christmas, alright! And nowhere more so than in Texas, where oil rigs could pass off as giant metallic Christmas trees
![$data['article']['post_image_alt']](https://images2.rextag.com/public/blog/297_Blog_Keystone XL Pipeline Controversy and Wildlife Disaster From Trump's Green Light to Biden's Red Light on the 15 Billion Project.jpg)
The pipeline industry in the USA faced and still faces a range of regulatory challenges, including permitting delays, environmental requirements, and public opposition to pipeline projects. In recent years, pipeline projects like the Keystone XL and Dakota Access pipelines had legal and regulatory obstacles that delayed or canceled their construction. Keystone XL Pipeline, proposed by TransCanada in 2008, aimed to transport crude oil from Canada (around Calgary and Edmonton) to refineries on the Gulf Coast (Port Arthur). The project faced opposition from environmental groups and indigenous communities, who argued that it would contribute to climate change and pose a risk to water resources. In 2015, President Obama rejected the project, citing concerns about its environmental impact. However, in 2017, President Trump revived the project, leading to further legal challenges. In June 2021, U.S. President Joe Biden officially canceled the project on his first day in office.
![$data['article']['post_image_alt']](https://images2.rextag.com/public/blog/282_Blog_Renewable Natural Gas How RNG Changes the Industry.jpg)
The renewable natural gas (RNG) industry in the United States is showing promising signs of growth. As of 2019, the U.S. consumed 261 billion cubic feet (BCF) of RNG, primarily utilized by independent power producers, electric utilities, and various commercial and industrial entities. However, this figure represents only a small fraction of its potential. Research indicates that the U.S. could theoretically produce up to 2,200 BCF of RNG through anaerobic digestion alone, which would equate to about 11% of daily national natural gas consumption.
![$data['article']['post_image_alt']](https://images2.rextag.com/public/blog/295_Blog_Renewable Efforts Lag as Global Oil and Gas Demand Continues to Rise.jpg)
Recently, the progress toward an energy transition is hitting a snag. Sales of electric vehicles are decelerating, and the growth in wind and solar power needs to be keeping pace with expectations. To make matters more challenging, electricity prices are climbing when they were expected to fall. Amidst these setbacks, the oil and gas sectors are proving resilient. According to BP's latest energy outlook, not only are these energy mainstays here to stay, but their demand is expected to remain relatively high even after reaching a peak. Interestingly, BP forecasts that oil demand will reach its zenith next year, marking a critical moment in energy consumption trends. This isn't the first time BP has projected a peak in oil demand. Back in 2019, their review anticipated a decline in demand growth, but the prediction fell flat. Instead, oil demand surged to unprecedented levels following the end of the global pandemic lockdowns, defying previous forecasts and underscoring the enduring dominance of traditional energy sources in the global market.