and building new plants to process increasing supplies of NGLs and other feedstocks. With access to these abundant economic feedstocks U.S. petrochemical manufacturers are well positioned to supply the increasing global demand for the many products made from petrochemical building blocks. The global petrochemical industry is expected to continue growing through the next decade, reaching a market value of more than $800 billion in the next five years. 5
For this energy renaissance to continue, crucial new infrastructure investments are essential. According to the U.S. Energy Information Administration (EIA), U.S. production of crude oil is expected to average a record 10.7 million barrels per day (b/d) A in 2018, surpassing the previous annual record of 9.6 million b/d set in 1970. 1 EIA also estimates that crude oil production will continue to grow over the next decade, increasing by more than 15 percent. 2
U.S. natural gas production has also continued to surge, and with it has come increased production of natural gas liquids (NGLs), which are valuable feedstocks for the petrochemical industry. NGL production is expected to reach 4.3 million b/d in 2018, and to grow by more than 20 percent over the next decade. 3 U.S. refineries, which are among the most sophisticated and efficient in the world, are
Expanded investment in America’s petroleum and petrochemical midstream infrastructure is essential to fully capitalize on America’s energy renaissance.
Bringing the benefits of this energy renaissance to U.S. consumers requires “midstream infrastructure” – the integrated system of pipelines, ports and waterways, railroads, roadways, and storage facilities that support moving America’s energy supplies from producer to consumer. Midstream infrastructure is the essential link between upstream production fields where oil, natural gas and NGLs are produced, to refineries and petrochemical manufacturing facilities where raw materials are turned into fuels and other essential goods. Midstream infrastructure also links refineries and petrochemical plants to consumers, moving fuels from refineries to regional storage terminals to retail outlets,
taking full advantage of increasing U.S. crude oil and natural gas production. The U.S. refining industry is expanding capacity, optimizing operations and increasing utilization rates to meet growing global demand for fuels and petrochemical feedstocks. In 2017, there were 137 petroleum refineries operating in the United States, with a total capacity of more than 18.6 million b/d, and refinery utilization averaged 91 percent. In 2018, U.S. refinery utilization is expected to average 92 percent, the highest rate in more than a decade. 4 U.S. petrochemical manufacturers are thriving as well, expanding existing capacity
A Barrels are a common unit for measuring liquids in the energy industry. One barrel is equal to 42 gallons.
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