Too much oil? Texas boom outpaces supply, transport networks

[longknife]

Years of ignoring the infrastructure is causing all sorts of problems. No new refineries for decades. Pipelines unable to carry the flow. Land and rail transport inadequate.

All that oil means pipelines from the shale patch are full, so producers are paying more to transport oil on trucks and rail cars. Shortages of labor, water and even the fuel used in fracking are driving up production costs.

Smaller producers without contracts to use pipelines are getting hurt most because they are forced to use trucks and railcars. Shipping oil by truck to Gulf Coast refinery and export hubs costs $15 to $25 a barrel, compared to $8 to $12 a barrel by rail and less than $4 a barrel by pipeline, according to market sources.

The shift is leading to traffic jams on highways and rail crossings in far-flung parts of the Permian shale fields. It also means fuel for supply vehicles and fracking equipment can be in short supply locally.

“Truck traffic is unlike anything we’ve ever seen,” said James Walter, co-CEO of Colgate Energy, a Midland-Texas based oil producer, who adds his company has agreements to transport all of its crude and gas production via pipelines.

Much more @ Too much oil? Texas boom outpaces supply, transport networks - One America News Network

 

[william the wie]

This will become an even bigger nightmare

 

[Manonthestreet]

Think that's called poor planning.......

 

[william the wie]

Think that's called poor planning.......

the legacy of the Commie Crook from Chicago is gigantic.

 

[Manonthestreet]

Think that's called poor planning.......

the legacy of the Commie Crook from Chicago is gigantic.

Was referring more to oil exec's. Can't look out over the oil patch and see the forest of rigs and ponder how it will get to market.....

 

[Tijn Von Ingersleben]

Tree huggers and regulatory agencies tie infrastructure improvements (new pipelines, refineries) up in legislative and bureaucratic red tape.

 

[Toronado3800]

Think that's called poor planning.......

the legacy of the Commie Crook from Chicago is gigantic.

The Commie under whom we started pumping soo much oil?

 

[edthecynic]

Tree huggers and regulatory agencies tie infrastructure improvements (new pipelines, refineries) up in legislative and bureaucratic red tape.

BULLSHIT!
Greedy oil companies have been shutting down refineries to keep the price up.

You may have heard that a big part of our problem is that American refineries have shut down and that this has created a shortage in the availability of gasoline. There is some truth to this— particularly in the northeastern part of the United States.

You probably have also heard that these refineries have been forced off-line because of stringent EPA regulations that have made it too difficult for the refineries to operate according to government rules and still earn a profit.

Nonsense.

 

[edthecynic]

Think that's called poor planning.......

the legacy of the Commie Crook from Chicago is gigantic.

Greedy oil execs were shuttering refineries long before Obama took office.

Refineries have been shutting down in this country for many years now. Indeed, the number of refineries in the United States dropped from more than 300 in 1982 to about 150 in 2009—well before Barack Obama took office and brought his EPA Administrator with him. Indeed, at one point in the presidency of George W. Bush, during a period when demand was on the rise, the closures of refineries had grown so severe that President Bush offered up military bases we were no longer using as locations for oil companies to build new refineries.

 

[william the wie]

He stopped the construction of two major and multiple smaller pipelines making it hard to get to full production.

 

[Toronado3800]

He stopped the construction of two major and multiple smaller pipelines making it hard to get to full production.

Of all the things Obama did or did not do, good or bad, limiting oil production was not one of them.

 

[william the wie]

look at your chart again. the loss of the congress in 2010 forced increasing oil production down his throat as your chart shows. Also Motley Fool does not show that Berkshire Hathaway's purchases of railroads in order to take advantage of rights of way. The law in that case was clear. Buffett and Munger could and did build pipelines without having to get clearance from anyone. It wasn't pretty but it worked

 

[Picaro]

The first opponents of the unnecessary Keystone were the state's GOP leadership; all the pipeline did was shorten the trip to the Gulf few miles, by running it over an aquafer. Anybody who lives in the West knows this is a completely stupid and pointless thing to do; the oil was getting to the Gulf port from Canada just fine without it, and fresh water is indeed more valuable than oil in a dry state. Pipelines are huge mooches off of govt., and especially rely on stealing land under 'eminent domain' scams, and it is already springing leaks to boot., and despite all the lies put out by the Koch bro's paid for pols, it created about ,2,000 temporary jobs, many of those for criminal illegal aliens.

 

[Picaro]

Gross over-production and over-drilling has led to massive burn-offs of natural gas, enough to power several cities every year. The pipelines like Keystone were only of benefit to Canada, and the Texas is so full of pipelines now it's ridiculous to claim we need more; the companies won't even maintain the ones we have now; houses keep blowing up in Dallas/FW over crappy old lines leaking.

 

[Wyatt earp]

He stopped the construction of two major and multiple smaller pipelines making it hard to get to full production.

Of all the things Obama did or did not do, good or bad, limiting oil production was not one of them.

He tried like hell though



How Obama, Clinton, & the DNC forced fracking on the world

 

[Wyatt earp]

Gross over-production and over-drilling has led to massive burn-offs of natural gas, enough to power several cities every year. The pipelines like Keystone were only of benefit to Canada, and the Texas is so full of pipelines now it's ridiculous to claim we need more; the companies won't even maintain the ones we have now; houses keep blowing up in Dallas/FW over crappy old lines leaking.

The problem is they don't go to the east and west coast, so they have to import oil.

 

[Picaro]

Gross over-production and over-drilling has led to massive burn-offs of natural gas, enough to power several cities every year. The pipelines like Keystone were only of benefit to Canada, and the Texas is so full of pipelines now it's ridiculous to claim we need more; the companies won't even maintain the ones we have now; houses keep blowing up in Dallas/FW over crappy old lines leaking.

The problem is they don't go to the east and west coast, so they have to import oil.

the Est is well served, but LA and SF is probably under-served, but that's because of all the fault lines out there, making gas pretty dangerous to use.

EIA - Natural Gas Pipeline Network - States Dependent on Interstate Pipelines Map

Map from 10 years ago. Some of the East use a lot of hydro-electric also, cheaper than gas long term, since the govt. paid for the dams and dynamos, then gave them away to 'private' energy companies for next to nothing.

 

[william the wie]

Gross over-production and over-drilling has led to massive burn-offs of natural gas, enough to power several cities every year. The pipelines like Keystone were only of benefit to Canada, and the Texas is so full of pipelines now it's ridiculous to claim we need more; the companies won't even maintain the ones we have now; houses keep blowing up in Dallas/FW over crappy old lines leaking.

The problem is they don't go to the east and west coast, so they have to import oil.

It's not reported much but there is fracking in CA. OR and WA built a pipeline to the Bakken. I'm not sure that pipeline is still in business but it leaked like a sieve into the Missouri, if memory serves

 

[Wyatt earp]

Gross over-production and over-drilling has led to massive burn-offs of natural gas, enough to power several cities every year. The pipelines like Keystone were only of benefit to Canada, and the Texas is so full of pipelines now it's ridiculous to claim we need more; the companies won't even maintain the ones we have now; houses keep blowing up in Dallas/FW over crappy old lines leaking.

The problem is they don't go to the east and west coast, so they have to import oil.

the Est is well served, but LA and SF is probably under-served, but that's because of all the fault lines out there, making gas pretty dangerous to use.

EIA - Natural Gas Pipeline Network - States Dependent on Interstate Pipelines Map

Map from 10 years ago. Some of the East use a lot of hydro-electric also, cheaper than gas long term, since the govt. paid for the dams and dynamos, then gave them away to 'private' energy companies for next to nothing.

Just parroting an article I read a while ago .

Why The U.S. Must Import And Export Oil



Location

Oil production, refining and demand can differ geographically. A main reason why the U.S. continues to import crude oil and refined products is that much of the infrastructure to produce oil, as well as refine and transport fuels, is in the mid-continent and U.S. Gulf Coast regions.

At the same time, many states with high motor fuel demand lack such infrastructure and instead receive fuels via shipping, rail and trucking. Florida, Oregon and the New England states are prime examples of states that depend heavily on more expensive transportation modes and imports.

 

[william the wie]

Refineries are dangerous and stink up the place even when they are non-poisonous.