Crude-by-Rail Volumes Higher in 2019

Hellenic Shipping News:

In 2019, production growth will necessarily slow-down in two key US shale basins due to pipeline constraints, according to ESAI Energy’s recently published North America Watch. Crude oil from the booming Permian Basin in West Texas has already been impacted with steep price discounts from a lack of pipeline takeaway, but the Bakken in North Dakota will start to feel the pinch next year as record production levels fill available pipeline space. Since production growth will slow down but not decline, these regions will be increasingly dependent on sending crude by railcar to get to markets in 2019.

Crude-by-rail volumes higher in 2019

World Pipelines:

In 2019, production growth will necessarily slow down in two key US shale basins due to pipeline constraints, according to ESAI Energy’s recently published North America Watch. Crude oil from the booming Permian Basin in West Texas has already been impacted with steep price discounts from a lack of pipeline takeaway, but the Bakken in North Dakota will start to feel the pinch next year as record production levels fill available pipeline space. Since production growth will slow down but not decline, these regions will be increasingly dependent on sending crude by railcar to get to markets in 2019.

Product Demand Growth Succumbs to Economic Pressures in 2020

OilVoice:

According to ESAI Energy’s recently released Two-Year Global Fuels Outlook, global demand for gasoline, gasoil, jet fuel, kerosene, and fuel oil is expected to rise by a combined 770,000 b/d in 2019, following an increase of just 440,000 b/d this year. This acceleration will be driven primarily by a return to demand growth in China. However, in 2020, a slowdown in global economic growth, in combination with relatively high petroleum product prices, will limit demand growth to 500,000 b/d