Working Their Asphalt

Working Their Asphalt

The nation’s construction industry is practically giddy by the prospect of the Administration’s proposed American Jobs Plan and the $115 billion earmarked to repair pot-holed roads and highways while building shiny new ones. But it’s one heck of a hot-diggity for our friends who produce and store asphalt. For the uninitiated, asphalt is produced from a mix of aggregates and the bitumen-rich tar sands crude that’s pipelined from our Canadian neighbors to U.S. refineries for processing. You simply can’t produce asphalt without the heavy oil. Canada currently exports 3.8 MMBPD of the stuff to the U.S. Even with the death of the Keystone XL, pipeline expansions now underway will add another 950,000 BPD of capacity to keep those pavers rolling. On the storage side, Tulsa-based Blueknight Energy is poised for a giant bump should the Plan pass. The company, which last month transitioned to a pure-play operator of asphalt terminals, operates the largest independently owned network in the U.S., with 53 terminals across 26 states and more than 8.7 MMBbls of storage capacity.

What do you think? Learn more about Reese Energy Consulting at www.ReeseEnergyConsulting.com.

You Might Also Like…

A Look in the Rear View, Part II

A Look in the Rear View, Part II

The oil and gas industry’s adaption of renewable energies quickened its pace in 2020 as producers, midstream operators, and refiners rolled out new initiatives and investments to power their operations and reduce emissions. Here’s a look at just a few. Houston-based Occidental, a longtime developer and investor of low-carbon technologies and fuels, announced this month it will design and build the world’s largest carbon capture facility in N.D. The company last Fall completed a 174-panel, 120-acre solar farm in the Permian, which now replaces all grid power and supplies all energy for Oxy’s Goldsmith oilfield operations. Tulsa-based midstream giant Williams in May announced it, too, would add solar to its natural gas transmission and processing operations in nine states. But oil refiners, in particular, have been left with little choice to accelerate their shift from fossil fuels to renewable sources. The fallout from COVID and ever-stringent emissions regulations have prompted the largest to the smallest refineries to convert feedstocks to biofuels, such as soybean oil, fats, and kitchen grease. Time to: adapt, re-think, survive.

What do you think? Learn more about our upstream, midstream, and downstream expertise at www.ReeseEnergyConsulting.com.

 

You Might Also Like…

American LNG Demand Comes Roaring Back

American LNG Demand Comes Roaring Back

Global demand for natural gas is pouncing like a lion on U.S. LNG with American exports crushing pre-COVID records. Reese Energy Consulting today is following the latest news on the surge of LNG tonnage being dispatched to recovering global markets in need of low-cost fuel to return to some semblance of normal. Back in June, the EIA reported that U.S. LNG exports had declined by more than one-half due to the COVID fallout of cancelled shipments and month-long hurricane shutdowns. This, after a record 9.8 BCFD in late March by a relatively new domestic energy sector that had witnessed runaway growth and expansion in four short years. But as of last Friday, U.S. exports not only tipped—but toppled—the scales at 11.4 BCFD. Top destinations between July and September weren’t limited to Asia either, but included the Middle East, Europe, South America, and Mexico. Say what you will, but this is a major bright spot in a topsy-turvy year for our abundant natural gas supplies, which have now reached all-time highs in new demand. The world is getting back on its feet.

What do you think? Learn more about REC and our natural gas and LNG expertise at www.ReeseEnergyConsulting.com.

You Might Also Like…