Changes Ahead for Crude Oil Flows in Louisiana
Louisiana may not match Texas in crude oil production, but it plays a vital role in the U.S. petroleum industry. The state ranks second in refining capacity and crude and refined product exports, with some of the world's largest and most sophisticated refineries capable of processing heavy crude into high-value fuels. Louisiana's refining network also serves as a critical supplier of gasoline, diesel, and jet fuel to the Southeast and Mid-Atlantic through major pipeline systems, making it an essential hub in the nation's energy infrastructure.
This report examines how crude oil moves into and across Louisiana, highlighting the pipelines, supply sources, and regional refining dynamics that support the state's 16 refineries. While southeastern Louisiana relies heavily on offshore Gulf production, southwestern facilities are supplied primarily by Texas and waterborne imports, and northwestern refineries depend on pipeline, rail, and truck deliveries. The report also explores how evolving infrastructure investments and changing market conditions could reshape crude flows and refining operations across the region.
Key takeaways from the report include:
Louisiana, Southern Arkansas refinery capacity accounts for nearly one-fifth of U.S. total
Refineries clustered in three regions, with the largest in Southeastern and Southwestern Louisiana
Each region has its own approach to sourcing, with most crude coming from the offshore Gulf, Texas
Pipeline expansions are already shifting regional crude oil flows; more changes are coming
"Jambalaya on the Bayou" is included in RBN & Novi’s 2026 Drill Down report series, a suite of reports covering many of the key issues expected to impact the markets for crude oil, natural gas and natural gas liquids. Drill Down reports are part of RBN Backstage Pass™ premium resources that also include Blog Archive Access, Spotcheck Indicators, Market Fundamentals Webcasts, Get-Togethers and more. By subscribing to RBN’s Backstage Pass™ Premium Services, you plug into our network and get direct access to our premium resources.
