AM-97-06 CHANGES IN THE PIPELINE INFRASTRUCTURE - Refiner Challenges and Oppurtunities

Description:

Petroleum pipelines have long been a critical component in the distribution of crude and refined products in the United States. Pipelines are typically the most cost efficient mode of transportation for reasonably consistent flow rates. The importance of pipelines relative to other modes of domestic petroleum transportation is demonstrated by the statistics summarized in Figures 1 and 2. For obvious reasons, inland refineries and consumers are much more dependent on petroleum pipelines to provide supplies of crude and refined products than refineries and consumers located on the coasts. This paper reviews the historical U.S. distribution patterns for crude and refined products, describes significant recent changes in these patterns and the petroleum pipeline infrastructure, and comments on the future outlook for the pipeline infrastructure. Finally, the challenges and opportunities presented to domestic refiners by these changes are discussed