Rapidly growing crude oil supply and more than 30 pipeline expansions planned in PADD 2 will alter traditional flow patterns and realign the value of crude transportation capacity across the Midwest and Gulf Coast, disrupting regional pricing relationships.
BENTEK Energy, a leading energy markets information and analytics company, reports that PADD 2 (Midwest) crude oil supply growth will double from 2011-16, including production increases of 547,000 b/d in the Williston Basin and 131,000 in the Utica Shale. Anticipation of U.S. and Canadian crude oil supply growth is leading to significant U.S. infrastructure projects in all sectors of the industry, including more than 75 crude oil pipeline projects, 25 crude oil rail projects and seven crude oil refinery expansions. As a result, U.S. crude oil, which historically has been transported north from the Gulf Coast to the Cushing market and Midwest refineries, is expected to reverse flow direction and head south from Canada, Cushing and the Midwest to Gulf Coast refineries. This will result in major changes in regional price differentials over the next five years.
BENTEK's Market Alert, Crude Awakening: Shale Boom Hits Oil,provides a comprehensive review of the U.S. oil market and its potential growth over the next five years, including industry challenges and implications. This Market Alert details current drilling and production activity in the most active U.S. and Canadian oil plays, including five-year production forecasts. The PADD 2 section of Crude Awakening: Shale Boom Hits Oil includes in-depth analysis on historical and projected Midwest oil supply and trends in key production areas such as the Williston, Anadarko and Utica. Analysis on existing and future Midwest transportation infrastructure, regional demand and a five-year WTI market outlook is also included, providing extensive analysis at the most fundamental level available in the marketplace today.
For more information about BENTEK's Crude Awakening: Shale Boom Hits Oil Market Alert or BENTEK's full line of Crude Oil Production Monitors, go to www.bentekenergy.com or call 1-888-251-1264.
About BENTEK Energy
BENTEK is a leading energy markets information company. Based in Evergreen, CO, BENTEK brings customers the analytical tools and competitive intelligence needed to make time-critical, bottom-line decisions in today's natural gas, crude oil, NGLs and power markets. BENTEK is a business of Platts, a leading global provider of energy, petrochemicals and metals information. Additional information about BENTEK Energy is available on the Web at www.bentekenergy.com.
Katie Lowe, 303-988-1320