RBN’s Daily Energy Blog and Insights sharpen your energy IQ through fundamentals-based analysis that makes sense of North America’s energy market dynamics.
New pipelines are coming online to deliver increasing volumes of US and Canadian production to market. Producers want to be paid full value for the quality of the crude that leaves their wellhead. Yet many pipelines blend different shippers’ crude into a common stream.
Rising Uinta crude production will run into a refining capacity ceiling unless new routes to market are developed. The distinctive black and yellow waxy crudes produced in Utah are largely refined locally in Salt Lake City refineries because of the challenges transporting them.
RBN Energy estimates that by 2015 rail terminal capacity to load heavy bitumen “dilbit” crude in Western Canada will be about 800 Mb/d. Unload terminals hoping to receive that crude on the Gulf Coast will have about 1 MMb/d capacity by 2015.
Shale has transformed the economics of oil and gas production in the U.S. and is creating an era of lower cost energy. Attractive rates of return are bringing producers to profitable shale plays like bees to a honey pot.
As we move toward the end of 2013, all eyes in the crude market will focus on the Texas Gulf Coast as a flood of over 1 MMBbl of new crude supplies arrives via pipeline.
The Rockies Express pipeline (REX) will soon reverse its direction of flow. Surely there is no more dramatic indication of the huge shifts in physical natural gas movements surging across North America.
Seems like every other week a new loading or unloading terminal project is being announced to move Western Canadian heavy crude by rail to somewhere on the Gulf Coast.
When you transport crude to market by pipeline its going to get mixed up with other folk’s production being shipped on that pipeline unless you have an exclusive pipeline – which is not the norm.
NATGAS Billboard is a daily, early morning email and report that provides an up-to-the-minute view of the natural gas market outlook, including storage injections/withdrawals and price. Billboard’s models incorporate pipeline flow data, weather models, electricity demand data and more.
Shale production has transformed the economics of oil and gas production in the U.S. and is creating an era of lower cost energy. Yet drilling and completion costs are typically far higher for shale wells than they are for conventional drilling.
Over the next three years, the production of natural gas liquids (NGLs) from the Marcellus/Utica could octuple (8X) to more than 650 Mb/d. Nothing like that has ever happened in the NGL business before. It has already started. Last month MarkWest officially inaugurated the Appal
