Crude Supply

Crude oil distribution to Houston area refineries is still being re-plumbed to reflect the ongoing transition to domestic supply. Estimates of current crude pipeline flows indicate as little as 43% of inbound pipeline capacity is being used - but new projects could add over 1 MMb/d to inbound supplies by early next year. Today we start a new series reviewing how well crude infrastructure is meeting Houston area logistic challenges.

Every Wednesday energy markets eagerly anticipate the EIA Weekly Petroleum Supply Report release. Its contents frequently sway the market. Last Wednesday the biggest surprise was a 500 Mb/d reduction in crude imports. Today we start a two part analysis of EIA crude inventory data.