Pipeline-Capacity Squeeze Reroutes Crude Oil
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More crude oil is moving around the United States on trucks, barges and trains than at any point since the government began keeping records in 1981, as the energy industry devises ways to get around a pipeline-capacity shortage to take petroleum from new wells to refineries, says the Wall Street Journal.
The improvised approach is creating opportunities for transportation companies even as it strains roads and regulators. And it is a precursor to what may be a larger change: the construction of more than $40 billion in oil pipelines now under way or planned for the next few years, according to energy adviser Wood Mackenzie.
With oil prices persistently above $100 a barrel, companies drilling new wells don’t want to forgo revenue while they wait years for new pipelines. That leaves them with trucks, trains and barges to move an increasing amount of crude.
With oil prices persistently above $100 a barrel, companies drilling new wells don’t want to forgo revenue while they wait years for new pipelines. That leaves them with trucks, trains and barges to move an increasing amount of crude.
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