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Issue Contents


Volume 13, Issue 5
Published: September 13, 2017
From demand pull to supply push

Altered supply chain dynamics, which has seen the US move from peak oil to a supply glut, have created attractive conditions for storage operators

The resurgence in US crude production over the past several years has generated a myriad of market and structural
changes, including upending world trade flows while pressing and holding refined fuel prices at low levels that has incentivised demand.
Of the many industry responses from upstream to downstream amid this paradigm shift, one has been a buildout in new storage tankage – a trend that continues.

CHANGING SUPPLY CHAIN LOGISTICS
Over a 10 year period, the country went from peak oil to a supply glut, and in many ways flipped supply chain logistics from demand pull to supply push. As drilling activity surged and US crude production reached rates last seen in the early 1970s, new pipelines were built and others expanded, refineries added capacity, new storage tanks were erected, and growth in exports exploded.
The US consumer has welcomed the new environment, driving more than ever, while the economic benefit has steadily boosted industrial and commercial output, albeit at a sluggish pace. Moreover, the advantages for US businesses do not stop at the border, with climbing fuel exports to Mexico also prompting spending on infrastructure to support operations.

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Investing in a flourishing market
As the chemical industry experiences a resurgence in the US, Stolthaven Houston is positioning itself to meet growing demand for infrastructure The shale oil revolution has led to a revival in the US chemical sector as significant investments are made in production capacity, generating more demand for more supply chain infrastructure...
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Fulfilling Houston's storage potential
Following the completion of 7.5 million barrels of underground cavern storage capacity, Fairway Energy is focusing on creating an extensive distribution network to support Houston’s thriving crude oil market Fairway Energy’s underground cavern storage is addressing a need in Houston for a more efficient crude oil marketas production continues to drive demand for logistics infrastructure...
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The storage and transport games
A lack of refining capacity in Mexico means that oil product imports will continue to increase, and infrastructure investments are now being made to capitalise on these market dynamics The storage and transport games started long ago, back in 2013, when several investors saw the potential demand for refined imported products from Tuxpan Veracruz...
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The rupture ripple effect
Analysing the impact of crude pipeline outages on the supply chain The network of crude pipelines in North America serves as the circulatory system for the oil supply chain...
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From demand pull to supply push
Altered supply chain dynamics, which has seen the US move from peak oil to a supply glut, have created attractive conditions for storage operators The resurgence in US crude production over the past several years has generated a myriad of market and structuralchanges, including upending world trade flows while pressing and holding refined fuel prices at low levels that has incentivised demand...
To read this article in full, subscribe now >
Turbulent times
How sanctions on Venezuelan crude, Mexico’s energy liberalisation and President Trump’s ‘America first’ energy stance are having an effect on trade flows across the US...
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