SDR’s Steve Crower published an article in Oil & Gas Journal’s most recent issue. Steve’s article gives in-depth market analysis regarding the U.S. oil refining industry and why refining flexibility is supporting opportunities and profits.
“A lower crude oil price environment has sparked concerns that projected reductions in US light, tight oil (LTO) production will lead to reduced profitability for US refiners as readily available supplies of low-cost feedstock and natural gas dwindle. Domestic LTO and associated gas production have served as stable cost-advantaged feed and energy sources in the last few years. But the steady growth in refined product exports during the last decade, alongside substantial investments in downstream processing before the US light crude production boom, have left US refiners well-positioned to maintain near-term profitability.
Incremental reduction in US demand for finished petroleum products (diesel, naphtha, and gasoline) amid growing global demand have prompted a trend of dramatically higher exports of finished products from US refineries. The decline in US domestic demand for products was prompted by consumers seeking more fuel-efficient transportation, including ride-sharing and alternative-fueled vehicles, as gasoline prices followed crude prices higher starting in February 2009.”
To access to the full article, please click here (PDF).
To read the article on the Oil & Gas Journal website, please click here.