AM-14-42 Changing Crude Qualities and Their Impacts on U.S. Refinery Operations

Description:

No singular event in recent years has had as significant an impact on the quality of refinery feedstocks as the shale revolution. Not only are shale crudes, such as Eagle Ford and Bakken, generally lighter than other domestic and foreign light grades, but the sheer magnitude of the output will force grade substitutions with heavier crudes. This “lightening” of the crude slate will present numerous processing challenges to refiners as well as significantly alter product yields. As a result of these changes, and the related activities in the production of natural gas liquids (NGLs), the U.S. will likely be transformed from the world’s largest liquid product importer (2005) into the world’s largest product exporter within 10 years from now if refinery utilization rates are maintained.