Sunday, April 22, 2012

Just One More Dot To Connect --

Updates

April 23, 2012: Saudi Arabia needs CO2 for EOR in its old, declining fields. See first comment below. 

 
Original Post
Link here to Minyanville.

Minyanville asks the question: which refinery in the US is about to become the biggest refinery -- within the next month?

Data points:
  • Trainer, COP -- about to close
  • Girard Point, Sunoco -- about to close
  • Marcus Hook, Sunoco -- about to close
  • Port Arthur, Saudi Refining/Shell -- about to become the biggest in US; among 10 largest in the world
How did this happen? First, increased oil production
  • Eagle Ford
  • Permian Basin
  • Bakken 
  • Athabasca Oil Sands near Alberta, Canada
Second, Seaway Pipeline reversal (Enbridge and Enterprise Products Partners)
Port Arthur, Sabine, Texas
  • undergoing massive expansion
  • capacity will more than double to 600,000 bopd
  • will become largest in US; surpass XOM's Baytown by approx 40,000 bopd
  • world's largest: Jamnagar, Gujarat, India: 1.24 bopd 
  • Port Arthur expansion: joint venture between Saudi Refining and Shell
  • Saudi Refining: a subsidiary of the Saudi Arabian national oil company, Saudi Aramco
Serendipity, the third dot
  • expansion plans drawn up 6 years ago
  • completion will coincide with Seaway Pipeline reversal
Other implications
  • imports of crude oil into the Gulf Coast region expected to plummet by 40% by 2016
  • imports will decrease almost 2 million bopd to 5 million bopd
  • that will take a lot of crude oil tankers off the high seas
Serendipity!

Of all the refiners in the world (XOM, COP, Total, Shell, Saudi, CVX), I find it so interesting that one of the joint partners at Port Arthur is Aramco. Who wudda thought?

    2 comments:

    1. Core Labs said...

      CO2 is needed for Middle East EOR. None available.

      So, build billion dollar refineries. CO2 is produced.

      That is why refineries are coming there.

      Anon 1

      ReplyDelete
      Replies
      1. Very, very interesting. I will move this to the top of the post so folks see it.

        Delete