RBN Energy

Midstream developers have complained for decades that federal courts reviewing agency approvals for their infrastructure projects have cast too wide a net — that is, instead of requiring agencies to simply analyze the specific environmental impacts of the project in question, the courts have been insisting regulators also examine the effects of the upstream and downstream activities the project would enable. As we discuss in today’s RBN blog, the U.S. Supreme Court ruled last week that under the all-important National Environmental Policy Act (NEPA) of 1969, it’s up to regulators to set the boundaries of their environmental review and that courts should defer to their judgment as long as they fall within a “broad zone of reasonableness.” 

We’ve discussed the qualities of the Uinta Basin’s unusual waxy crude, the challenges inherent in moving it to market, and the use of machine-learning AI to optimize its extraction from two key geologic layers or “benches” deep below the rugged hills of northeastern Utah. Now, in today’s RBN blog, it’s finally time to reveal what all this tells us regarding the prospects for continued Uinta production growth; the need for new takeaway capacity, blending and refining infrastructure to handle it; and — very important — the estimated duration of economically recoverable waxy crude under various price scenarios. 

It has been 12 months since the Trans Mountain Expansion Project — aka TMX — finally began operations after years of delay, creating a much-needed, larger conduit to move Western Canada’s rising crude oil production to the Pacific Northwest and overseas markets. Although the customer base for exports remains limited, the Trans Mountain pipeline system has been responsible for opening up entirely new markets for Canadian crude. As we discuss in today’s RBN blog, despite its numerous delays and immense cost, the pipeline has recently seen record crude shipments and is nearing its nameplate capacity, driven by rising exports.