Thursday, August 13, 2015

Midwest shipping more crude oil than it receives

The U.S. Energy Information Administration reports that "due to increased rail shipments and pipeline reversals, the Midwest region now ships out more crude oil than it receives," Zach Koppang reports for Shale Plays Media. "Without these rail movements, according to the EIA, the Midwest would still be a net recipient. Beginning in the first few months of 2013, the Midwest began shipping more oil than it was receiving, which was occurring on an annual basis during 2014."

The most recent Petroleum Supply Monthly report said the Midwest shipped out an average of 1.7 million barrels per day through May of this year, Koppang writes. Of that total, 638,000 barrels per day were hauled by rail. Rail shipments "from the Midwest to the East Coast began to increase in 2012 as production in the Bakken ramped up . . . By May 2015, pipeline shipments reached 1.3 million barrels per day, the highest level since the EIA began recording pipeline shipment data in 1986." (EIA graphic)

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