The Fuel and Petrochemical Supply Chains

Pipelines also are the primary mode for transporting refined products to distribution terminals serving consumer markets. Pipelines provide a safe, reliable, efficient and cost-effective way to move bulk liquids, particularly over long distances. Petroleum and petrochemical pipeline infrastructure includes: • 207,000 miles of mostly underground interstate and intrastate pipelines that carry crude oil, NGLs or petroleum products 7 ; • Pumping stations that are used to manage pipeline flow and pressure; • Interconnection stations that allow for product to flow from one pipeline system into another; and • Breakout tankage that provides temporary storage along the pipeline system. Pipeline infrastructure includes numerous miles of small-diameter pipeline gathering systems that move crude oil and natural gas from the wellhead to storage, processing facilities and connections to larger pipeline systems. It also includes pipelines that transport and distribute consumer-grade natural gas to refineries, petrochemical plants and power generation facilities that support refinery and petrochemical manufacturing operations. By the Numbers Pipelines move millions of barrels of crude oil, refined products and NGLs each day. According to the U.S. Pipeline and Hazardous Materials Safety Administration (PHMSA), there are 76,000 miles of crude oil pipelines, 69,000 miles of NGL pipelines and 62,000 miles of refined- product pipelines in operation in the United States. 8 As U.S. oil and gas production

There are 76,000 miles of crude oil pipelines, 69,000 miles of NGL pipelines and 62,000 miles of refined-product pipelines in operation in the United States.

has increased, thousands of miles of new pipeline have been added. This new infrastructure includes pipelines that move crude oil and NGLs from production basins, such as the Bakken in North Dakota, the Eagle Ford and Permian in Texas, and the Marcellus and Utica shale regions in Pennsylvania and Ohio, to refineries and petrochemical processing facilities. From 2010 to 2016, crude oil and NGL pipeline mileage increased by more than 25 percent. 9 With U.S. oil and NGL production projected to grow by more than 15 percent and 20 percent, respectively, over the next decade, significant new investments are needed to ensure that these resources can be tapped to fuel our growing economy. Needed investments include the construction of new pipelines, as well as the expansion of existing systems. As U.S. crude oil production has grown, U.S. refiners have increased the processing of domestically produced crude. As a result, they have become increasingly reliant on pipelines for crude supply. In 2016, U.S. refineries received 10.2 million b/d of crude oil via pipeline, and 62 percent of total crude receipts, an increase in refinery pipeline receipts of more than 30 percent since 2010. 10

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