Current Situation and Prospect of US Oil and Gas Transportation Infrastructure Development

Wang Haihua and the progress of production will help to find and extract oil and gas from the world’s major reserves. At the same time, the demand for petroleum products has increased in every corner of the world. But the supply and demand situation is rarely concentrated in the same place. As a result, transportation is essential to ensure the reliable and affordable flow of oil. Tankers, railways and pipelines have proven to be effective and economical means of connecting oil supply and demand. Supply pipelines and railways to transport crude oil from the production area to the port loading and unloading station. The tanker then delivers the crude oil directly to the demand side pipe connected to the refinery that converts the raw material into a useful product.

In recent years, the US tight oil supply continued to grow, by 2035, the US oil production will increase to 12 million barrels / day, natural gas growth will be more significant, 2035, natural gas production from the current 72 billion cubic feet / day To 110 billion cubic feet per day to 131 billion cubic feet per day. Natural gas will also develop with the production of natural gas. Growing energy production depends on an expanding network of energy infrastructure, including railways, pipelines and maritime transport.

Tanker

Waterways are the most effective way to transport everyday products (from oil, food, coal and agricultural products to steel, sand, chemicals and other construction supplies) to the rest of the United States. The current advanced tanker is a safe combination of computer-aided design products, more powerful, more mobile, more durable. The maritime (tanker or barge) has long been an important part of the trade in crude oil and its products for certain areas (especially from Alaska to the West Coast and from Vancouver to the United States). For the US Midwest and the Gulf Coast producers, it is becoming increasingly attractive to transport crude oil through waterways. In 2013, 16% of the crude oil is transported by water to the refinery.

Pipe

The United States has more than 190,000 miles of liquid pipelines and more than 300,000 miles of natural gas pipelines, which are the primary means of moving petroleum products to the consumer market.

Pipelines can extend tens to hundreds or even thousands of miles long. The United States in 2013 had a total of 19,239 miles of liquid pipelines, including 60,911 miles of crude oil pipelines, 63532 miles of refined petroleum product pipelines for the transportation of gasoline, diesel, jet fuel and other refined products and 62,742 miles of natural gas , Ethane and other industrial raw materials. The US Natural Gas Pipeline Network is a highly integrated transmission and distribution network that can deliver natural gas to almost any location in 48 states. It consists of more than 210 natural gas piping systems and 300,000 miles of interstate and state internal pipelines.

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The cost of transporting crude oil or petroleum products through pipelines is only a fraction of the cost of other modes of transport. The cost of transporting crude oil through railways is typically $ 10 to $ 15 per barrel, while pipeline transportation costs less than $ 5 a barrel.

The United States has a wide range of natural gas infrastructure that can effectively produce, store and transport natural gas. The United States is the world’s largest natural gas consumer, with the recent shale gas production growth, the United States has become the world’s largest producer of natural gas. Its developed natural gas pipeline system will supply the natural gas delivery to the major markets and smaller markets. While most of the pipes are relatively short (hundreds of miles or less), some of the major pipelines can extend over thousands of miles.

In 2014, nearly half a million miles of liquid and natural gas pipelines in the United States delivered 16.2 billion barrels of crude oil and petroleum products and 27.3 trillion cubic feet of natural gas at a security rate of 99.99 percent. The United States needs more pipelines to keep up with growing demand for production and consumption.

Rail transport

Railway infrastructure to support oil and gas, manufacturing, agriculture and other industries transportation needs. Railways are safe and effective means of transporting crude oil and other petroleum products.

Technological advances have increased crude oil production in shale deposits and made the United States the world’s largest oil and gas producer. The Bakken Group, located in North Dakota, Montana and Canada, has seen crude oil production from about 200,000 b / d in 2007 to more than 1.2 million barrels per day by 2015. Because the US liquid pipeline network was built to link oil and oil and oil production and imports from the Gulf Coast and refineries and demand centers in the central and western regions, there was no pipeline to transport light Bakken crude oil to those with high demand , The operator has been passing Bakken crude oil from the production area to the refinery through railways. The railroad was initially used only to transport crude oil from Bakken to the eastern refinery. With the increase in Bakken crude oil production, rail transport in Bakken exceeded 2014 Billion barrels, since the increase of 16 times since 2009. Other regions of the producers have also expanded their rail capacity to transport crude oil to oil refineries on the eastern and western coasts. In just a few years, railways have become increasingly important alternative channels in areas where energy infrastructure is relatively scarce Of the transport channels, its handling capacity in the United States are improving. With these crude oil from domestic, crude oil imported from other countries to the East Coast refinery has fallen. Crude oil from the US shale zone to the West Coast refinery also offset the decline in crude oil production in California and Alaska. The railway will transport more than half of this crude oil to the east coast. Bakken crude oil increases the energy resources of the East Coast through rail transport and reduces the cost of home heating oil, gasoline and petroleum products.

As a result of its exponential growth, crude oil rail transport, which was previously considered too expensive to compete with the pipeline, has received serious attention. In 2008, the amount of crude oil transported by rail would be negligible (less than 9400 trucks). This situation began to change around 2010, from 2011 to significantly accelerated to 66,000 truck crude oil loading. In 2013, more than 430,000 trucks of crude oil were transported by rail, and by 2015, rail transport of oil accounted for about 8% of US oil production and a security rate of 99.99%.

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As the railways can transport crude oil to any place, in the absence of pipeline facilities in the eastern and western coastal areas of the most competitive. Rail transport of crude oil in North Dakota dominated, 2013, 70% of the state’s crude oil is transported by rail, in October 2013 reached 80 million barrels per day peak, Texas, New Mexico, Colorado, Wyoming And Utah, the amount of rail traffic is increasing rapidly.

Future trends

A secure, efficient and properly maintained reliable infrastructure system can reduce the cost of providing oil and gas and its products to consumers by reducing congestion, maximizing efficiency and preventing accidents. The US energy infrastructure system was originally intended to deliver oil and gas from coastal areas to refineries and inland areas. Today, energy revival in the United States is driven by a large amount of energy resources in inland rocks, including EagleFord and Barnett shale in Texas, Woodford shale in Oklahoma, Bakken shale in North Dakota, and Pennsylvania, New York, Ohio, Maryland and West Virginia Marcellus Shale. In order to take full advantage of its full potential, the United States needs to maintain its existing infrastructure and invest in new infrastructures to transport US resources from these inland areas to refineries and ultimately to consumers. While the decline in oil and natural gas prices affected by supply and demand has created a much uncertain environment for future energy investments, according to the API’s study of oil and gas infrastructure investments in 2017, Marcellus in the northeastern United States And the Utica shale zone and the West Texas Permian basin shale gas and dense oil production is the main driving force for the development of oil and gas infrastructure, oil and gas infrastructure development will continue for a long time, the oil and gas base The strong investment in the facility will have a significant positive impact on the US economy.

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