This document summarizes a conference call hosted by Stifel Capital Markets on December 9, 2013. The call featured two presentations on topics related to the shale gas and oil industries in the United States: 1) The implications of shale gas for the resurgence of US manufacturing, presented by Taylor Robinson of PLG Consulting. 2) An analysis of the growth of crude oil transport by rail, or "crude by rail", presented by Graham Brisben also of PLG Consulting. The document provides background on PLG Consulting and outlines the agenda and dial-in details for the conference call.
3. About PLG Consulting
» Boutique consulting firm with team members throughout the US
Established in 2001
Over 80 clients and 200 engagements
Significant shale development practice since 2010
Partial Client List
» Practice Areas
Logistics
Engineering
Supply Chain
» Consulting services
Strategy & optimization
Assessments & best practice benchmarking
Logistics assets & infrastructure development
Supply Chain design & operationalization
M&A/investments/private equity
» Specializing in these industry categories:
Energy
Bulk commodities
Manufactured goods
Private Equity
3
4. Logistics
Engineering
Supply Chain
Shale Gas Implications for US Manufacturing Renaissance
A detailed analysis of shale’s direct impact to the renaissance of US manufacturing
Real World Experience
Strategic Perspective
Depth of Analysis
Hands-on Engagement
Presented by Taylor Robinson
December 9, 2013
PLGConsulting.com
4
5. Shale Gas Is More Important to US
Industry Competitiveness Than Oil
Oil vs. Gas Price on BTU Basis
» Natural gas is 4X cheaper than oil on a BTU-basis
Innovation will convert more transportation fuels and other energy
requirements to natural gas
$30
WTI Crude ($/MMBTU)
$25
Natural Gas ($/MMBTU)
» US electricity prices are the lowest in the industrial world
US industries are now the power cost leaders
Gas drives an increasing share of the US electricity generation capacity
$20
$15
$10
Chemicals
Resins
Compounds
» Natural gas is a cleaner burning fuel compared to other
hydrocarbons
$5
$0
2005 2006 2007 2008 2009 2010 2011 2012 2013
Source: EIA
A
Average Cost of Electricity (2012)
¢/kWh
» US gas downstream products will have world class
competitiveness - are the “building blocks of
manufacturing”
35
30
25
20
15
10
5
0
31¢ 30¢
18¢
13¢
9¢
7¢
4¢
3¢
5
6. US Shale Gas History
Gas rig count has decreased significantly,
but gas production has increased – Why?
»
Shale gas prolific supply growth in 2007 &
2008 caused a dramatic price drop in 2009,
rigs shifted to oil & liquids
»
Drilling productivity continues to lower costs
and increase production with less rigs
»
Rig Count by Class vs. Gas Production
And the Liquids (Crude, NGL) wells produce
dry natural gas as a by-product
Representative Productivity Gains – Fayetteville Shale Play
Source: Southwestern Energy investor presentation, September 2013
Source: Bentek, September 2013
6
7. US Shale Gas Future
»
Abundant US gas supply for the foreseeable future
US Natural Gas Supply/Demand
Low cost reserves in accessible locations near population
US will become a net gas exporter by 2020
»
US gas demand will grow gradually due to:
Coal-fired generation plant converting to gas
More industrial use – steel, fertilizer, methanol
Mexican export via pipeline and LNG export overseas
Increasing use as transportation fuel
US gas cost competitiveness is sustainable
Supply will overwhelm demand as prices approach $5
US government will likely limit LNG export to protect US from
world gas market price
Annual Average Henry Hub Spot Natural Gas Prices
2011 $ per M Btu
»
Source: EIA, Annual Energy Outlook, 2013
Source: BENTEK, September 2013
7
8. Marcellus: Future Gas Play of Choice
»
Marcellus is gas play of choice
Massive scale near highest US population density
Rapid increase in production – now 5th largest production
“country” in the world
Low cost wells with high productivity enables dry gas
profitability for efficient drillers at current price
Export potential for LNG & NGL from Marcus Hook and
other export terminals
However, no ethane crackers in the region, so gas NGLs
need to be piped to Gulf region for further processing
Shale Gas Development Rates
Shale Play IRR
Currently, only
profitable dry
gas play
Source: Bentek, September 2013
Source: Bentek, September 2013
8
9. Shale Gas Downstream Products
Inputs
>>
Wellhead >> Direct Output >>
Thermal >>
Fuels >> Raw Materials
>>
Generation
Downstream Products
Steel
Process Feedstocks
Proppants
Fertilizer (Ammonia)
Gas
Home Heating (Propane)
OCTG
Methanol
Other Fuels
Chemicals
NGLs
Feedstock (Ethane)
Feedstock (Propane,
Butane, etc)
Water
Cement
Chemicals and Resins
Chemicals and Resins
Crude
Petroleum Products
Gasoline
Petrochemicals
Diesel, Jet Fuel
Other Refined Products
» Shale crude oil makes the headlines, but shale gas & NGLs will drive US industry
and manufacturing cost competitiveness and growth
9
10. NGL Boom In Progress
»
NGL = Natural Gas Liquids or “Wet Gas”
Prevalent in large Crude plays as a by product – Bakken,
Eagle Ford, Permian
Prolific areas in eastern Marcellus and Utica
Adds profitability potential for oil & gas production
companies
»
NGLs require processing and fractionation
Capacity coming on line quickly in multiple plays
3-9 gallons/MCF (thousand cubic feet)
–
Ethane
~42-65%
–
Propane
~28%
–
Normal Butane ~8%
–
Iso-Butane
~9%
–
Condensate ~13%
»
NGL supply growth will outpace downstream
product demand in North America
Ethane currently “rejected” in large volumes due to low
prices
As processing capacity increases, export of downstream
products will grow significantly due to cost advantage
10
11. Ethane is the “Building Blocks” for
Manufacturing
Feedstock/
Intermediary
Finished
Products
11
12. Shale Gas Phased Impact To US Industrial &
Manufacturing Cost Competitiveness
2008
2010
2012
2014
2016
2018
2020
Phase III – “Manufacturing”:
Raw material cost driven
Shale
Gas
Boom
Phase II ‐ Downstream Products:
Resins, Chemicals
Phase I ‐ Gas & Power‐intensive Industries:
Steel, Fertilizer, Methane
» Phase I & II expansion, brownfield and greenfield
plants announced – 2014-2017 investment peak
Nearly $90B of chemical industry investments have been announced
with more announcements expected
Foreign investment is over 50% of announced
Not all of the announced factories will be built or be delayed due to
regulatory issues
» Ethane crackers are vital to downstream growth
10 expansions and 7 greenfield crackers announced
3-5 world scale crackers likely to be built
12
13. Phase I – Gas- and Power-Intensive
Industries Are Advantaged Now
» Steel example -- Direct Reduction Iron (DRI)
Average Cost of Electricity (2012)
Gas strips oxygen from iron core to make high purity/quality pellets
DRI pellets cost ~$270/ton vs. scrap steel cost ~$390/ton
Nucor/Encana $750 M plant in St. James Parish, LA is starting early 2014
with capacity of 2.5 M tons/year (will be largest DRI plant in the world)
Voestalpine 2 M tons/year HBI and DRI plant is due online in early 2016
» Fertilizer example – Numerous new plant
announcements
Three iron‐ore storage domes stand near Nucor's direct‐reduced iron plant in
Convent, La.www.wsj.com ‐ Feb 1, 2013
Gas is feedstock for ammonia/nitrogen
5 plants will likely be built out of the 20 factory announcements
First world scale plant in nearly 25 years in Wever, IA – Iowa Fertilizer
(OCI) – projected to start in late 2015
CF Industries’ two fertilizer expansions that have been announced in IA
and LA are likely to be built – 2016 start
» Methanol example – Imports will be displaced
Beaumont OCI plant restoration in 2012 – producing methanol &
ammonia
LyondellBasell’s restart of mothballed Texas plant operational late 2013
Methanex is relocating two plants from Chile to LA – first plant expected
operational by end of 2014 and second early 2016
OCI new plant announced in Beaumont – Q4 2016 start
Valero evaluating bolt-on approach for methanol plant at refinery in LA,
project could startup in 2017
13
14. Phase II - Low Cost Gas Feedstock Provides
Significant Cost Advantages for Chemicals & Resins
» US has a large structural cost advantage due to
gas-based ethane for downstream products
Europe and Asia are tied to crude-based naptha as a feedstock
for their downstream processing
US has shifted to ~90% ethane feedstock for ethylene
» However, US ethane cracker and processing
capacity is tight and ethylene prices are inflated
Current ethane cracker margins 50-60 cents/lb
Additional cracker capacity expected in 2016/2017
Margins/prices will moderate as more capacity comes online
New US resin facilities also on the drawing board
Excess resin capacity will promote globally competitive prices
and large export increases
Source: Townsend Solutions
North America Ethylene Expansions
50,000
k tons
45,000
k tons
40,000
35,000
30,000
2012 2013 2014 2015 2016 2017 2018 2019 2020
Actual Capacity
Additional Capacity
Sources: Townsend Solutions
14
15. Phase III - Raw Material Cost Advantage Is
Key Cost Driver to Reshoring Growth
» Raw materials normally accounts for 60-70% of
manufacturing cost of goods sold (COGS)
Most product cost competition is won or lost here
Shale gas giving the US an advantage for steel, plastics,
chemicals
» Total labor cost is usually ~20% of COGS for US
manufacturers
China labor cost in $ will continue to rise due to inflation and
currency appreciation
US labor rate expected to remain stable
» Transportation & Logistics costs are in “Other”
Asia/China has 5~10% cost disadvantage due to extra ~ 1
month shipping lead time (major cash flow disadvantage)
Transportation costs continue to rise
» Energy cost is usually less than 5% for final
manufacturer
However, energy costs are buried in raw material costs and
transportation and can be more substantial in energy-intensive
products
US has a tremendous advantage vs. industrialized world
15
16. Implications and Wrap Up
»
Reshoring manufacturing volume will be limited until raw
material costs are advantaged with some exceptions:
Durable goods
Quality differentiation
Innovation / proximity to market advantages
Mexico near-sourcing
»
Shale gas-driven raw material advantages will take 5 years+
to flow through supply chain
Ethane crackers are current bottleneck to downstream cost competitiveness
Bottleneck will be relieved in 2016/2017 timeframe
Imports will be displaced – exports will grow dramatically in some industries
»
Shale gas competitiveness is sustainable with huge,
accessible supply reserves with continuous production cost
improvement
»
Shale oil is “icing on the cake” for the US
Shale oil and gas supply chain will drive job growth
Energy independence coming!
Improvement in trade deficit
16
17. Thank You!
For follow up questions and information, please contact:
Taylor Robinson, President
+1 (508) 982-1319 / trobinson@plgconsulting.com
17
18. Logistics
Engineering
Supply Chain
Crude By Rail Report
A detailed look at the impacts of crude by rail on the marketplace
Real World Experience
Depth of Analysis
Strategic Perspective
Hands-on Engagement
Presented by Graham Brisben
December 9, 2013
PLGConsulting.com
18
20. Shale Play Product Flows Outbound
» Natural Gas
Majority via pipelines, some trucks
» Natural Gas Liquids (NGLs)
Requires processing (fractionation)
3-9 gallons/MCF (thousand cubic feet)
–
–
–
–
–
Ethane
Propane
Normal Butane
Iso-Butane
Condensate
~42-65%
~28%
~8%
~9%
~13%
» Crude Oil
Bakken play as a model
20
21. “Tight” Oil Sources Driving Overall
North American Growth
» Dramatic increases
in production due
to hydraulic
fracturing and
horizontal drilling
7.74 MM bbl/day
Projected to grow by
~30% over next four
years
“Tight” oil sources
driving overall North
American growth
Production forecasts
frequently revised
upward
Largest area of nonOPEC growth is
North America
Source: BENTEK presentation, November 2013
21
22. Some Basic Facts About Crude Oil:
Grades and Qualities
» Heavy/sour
Higher sulfur content, yield for asphalt & diesel
Sources include
–
–
–
–
Western Canada (largest single play in North America)
Venezuela
Mexico, Alaska North Slope
Middle East (light/sour)
Significant investments made ($48B since
2005) at select refineries to install coker units
that will allow processing of heavy/sour
Heavy/sour crude has a natural home in
Midwest and US Gulf Coast (~2.8 MM bpd
demand at USGC)
» Light/sweet
Brent, WTI, and US shale play crudes
(Bakken, Permian, Niobrara, Eagle Ford) are
light/sweet
US is close to saturation point on light/sweet
crude at mid-continent and USGC refining
areas
Source: RBN Energy
22
23. Crude Market Overview
ANS
Oil
Sands
Hardisty, AB
Pacific Northwest
Refiners
PADD V
Demand
2,500
kbpd
Bakken
Clearbrook, MN
Light/Sweet
PADD II
Demand
Heavy/Sour
3,325
kbpd
East Coast
Refiners
Light/Sweet
California
Refiners
Heavy/Sour
Midwest
Refiners
1,075
kbpd
PADD I
Demand
Light/Sweet
Heavy/Sour
Cushing, OK
Permian
Brent
St. James, LA
LA Gulf Coast
Refiners
TX Gulf Coast
Eagle Ford Refiners
Mexican Maya
8,100
kbpd
PADD III
Demand
Light/Sweet
Sources: EIA, PLG Analysis (Google Earth)
Venezuela Crude
Heavy/Sour
West African
Brent
Middle East
23
West African
24. Displacement of Waterborne Crudes
by Mid-Continent Sources
» Surging domestic production is diminishing imports
West African imports already down ~70% from 2010 levels
» Shift from coastal to mid-continent supply points necessitated “re-plumbing” the
flow of crude in North America
Pipeline reversals, repurposing, new starts
Crude by rail comes of age – born in the Bakken
Source: BENTEK presentation, November 2013
24
25. Crude By Rail From the Bakken
– A Short History
»
2009-2010: Objective of crude by rail
to “bridge the gap” until pipelines built
and get product to market
~932,000 BPD September 2013
2010-2011 discount of ~$8-12/bbl for Bakken
crude vs. peer WTI
Undervalued due to logistics constraints
“stranding” the oil
First outbound unit train
shipment December,
2009
»
2011-2012: Significant development
of crude by rail loading terminals
Source: EIA, North Dakota Pipeline Authority, PLG
»
Initial destination is Cushing, OK
Delivers better price than Clearbrook
»
2012-2013: Rail emerges as tool of
arbitrage
Flexibility to sell Bakken crude at other
light/sweet trading hubs – St. James in particular
– allows traders to exploit price differentials
Higher cost of rail vs. pipe is offset by superior
“optionality”
Map by PLG Consulting
25
26. Crude Oil by Rail vs. Pipeline
» Rail cost: 50-100% more expensive than
pipeline transport
» Near-term offsetting rail advantages:
» Rail pricing drivers
Advantaged rate structures for first-movers, volume,
and unit train operators
“Floor” has been set for crude by rail pricing
Crude price differentials more important than cost
vs. pipeline
Cost Comparison: Bakken to Cushing and USGC
$16.00
$15.00
$14.00
Dollars Per Barrel
Site permitting, construction much faster
Lower capital cost
Scalable
Shorter contracts (2-3 year commitments vs. 10
years for pipeline)
Faster transit times
Access to coastal areas not connected via pipeline
Origin/destination flexibility
Primary advantage: Tool of arbitrage for trading
desks
$12.00
$12.00
$10.50
$10.00
$8.00
$6.50
$6.00
$4.00
$2.00
$Pipeline to
Cushing
Source: PLG analysis
Rail to
Cushing
Pipeline to Pt
Arthur
Rail to Pt
Arthur
26
27. US Shale Plays and CBR Loading
and Offloading Terminals
PADD V
Demand
2,500
kbpd
Light/Sweet
3,325
kbpd
PADD II
Demand
Light/Sweet
Heavy/Sour
Heavy/Sour
1,075
kbpd
PADD I
Demand
Light/Sweet
Heavy/Sour
Load Terminal
Offload Terminal
Shale Play
Oil Sands Play
Sources: EIA, Various Industry Sources, PLG
analysis (Google Earth)
8,100
kbpd
PADD III
Demand
Light/Sweet
Heavy/Sour
27
28. The Importance of Price
Differentials to Crude by Rail
»
Differentials made rail attractive
Bakken and WTI differential as high as ~$20/bbl vs. Brent in 2012
CBR enables producers to sell at trading hubs with higher
benchmarks
»
Market response: E&P, midstream players willing
to rapidly deploy significant capital to enable
access and capitalize on spreads
Multi-modal logistics hubs in shale plays and at destination
markets (i.e. Cushing, OK, St. James, LA, Pt. Arthur, TX, Albany,
NY, Bakersfield, CA)
Lease and purchase of railcar fleets
»
Refineries install unit train receiving capability
Particularly coastal refineries previously captive to waterborne
imports (i.e. Philadelphia, PA, St. John, NB, Washington state)
»
Pipeline capacity underutilized
Rail captures 73% Bakken takeaway by April 2013
»
Differentials are both an incentive – and a risk – for
crude by rail
3Q 2013 a cautionary note
Source: North Dakota Pipeline Authority, PLG Analysis
28
29. Correlation of Operating Rig Count
with Sand and Crude Shipments
200,000
2,500
Operating On Shore Rigs
All Sand Carloads Handled
180,000
Petroleum Carloads Handled
160,000
140,000
Carloads
120,000
1,500
100,000
80,000
1,000
60,000
40,000
Operating Onshore Rigs
2,000
500
20,000
0
0
2007
Avg.
2008
STCC 14413 (sand) and 13111 (petroleum)
Avg.
2009
2010
2011
Source: US Rail Desktop, Baker Hughes, STB data
2012
2013
29
30. All Crude Handled by Railroad
Volume Growth
90,000
80,000
70,000
Carloads
60,000
BNSF
50,000
UP
CPRS
40,000
NS
CSXT
30,000
CN
KCS
20,000
10,000
0
Quarterly Data
STCC 13111 Source: US Rail Desktop
30
31. Shale Related Rail Traffic Still Small
Relative to Coal Volumes
Railcars Handled: Sand, Crude, & Coal
2,500,000
Carloads
2,000,000
1,500,000
Sand
1,000,000
Crude
Coal
500,000
2013
2012
2011
2010
2009
2008
0
Sand
Crude
Coal
Quarterly Data
STCC 14413 (sand), 13111 (petroleum), 11212 (coal)
Source: US Rail Desktop
31
33. Forecast of Crude Railcar
Supply and Demand
» Production increases vs. railcar
capacity increases
Significant increase in railcar capacity
with the large railcar backlog
If pipelines and local refining can
consume production increases in
Permian and Eagle Ford, crude by rail
will be primarily Bakken and
Canadian Oil Sands-driven
» Under best-case scenario for
rail market share capture, data
suggests existing & planned
tank car fleet exceeds demand
Assumptions:
• Bakken: 80% rail market share of Bakken’s projected volumes
• Western Canadian Oil Sands: CAPP projected rail load out capacity due online by 2014 (300K bbl/day) and multiply by
two for capacity due online by 2015 and assume 80% CBR utilization.
• 30,000 crude railcars in March and build rate of 21,500 railcars/year through Q3-2015 with attrition rate of 3,000
railcars/year
• 650 bbl. average railcar capacity and average 23 day turn
• Other production sources increase at rate of 2% per quarter
Sources: CAPP, AAR, NDPA, GATX, and PLG analysis
» Possible retrofit of “old design”
railcars could dramatically
decrease capacity
Approx. 2/3 of unlined, 30K/gallon
fleet would need retrofit
33
34. Lac Megantic Incident is
Changing Crude by Rail
» As with other major rail accidents, expect lasting
impact
» Increased product testing, documentation and
traceability (FRA directive)
Oil chemistry varies by well/pad
Concerns with extremely low flash and boiling points
Flammable liquids/crudes likely will require new design tank cars
» Increased FRA audit and scrutiny of entire CBR supply
chain
» Railroad operating rule changes on hazmat train
handling
OT 55 expanded to include all trains transporting hazmats
» Increased scrutiny, insurance requirements
Short line and regional railroads in particular
May have consequences in CBR freight rates
34
35. Shale Development and Crude By
Rail: Current Market Dynamics
»
Brent vs. WTI Spread
Adverse 3Q 2013 market forces have
reversed
WTI-Brent spread now ~$16/bbl
»
CBR rebound driven by Bakken to
coasts
Long-term outlook for Bakken CBR to USGC is
weak
Key driver: LLS now aligned with WTI, not Brent
»
“Next wave” of CBR development:
Canadian Oil Sands
Source: RBN Energy
Terminal investments in Alberta and PADD II and
III
–
~600 bbl/day capacity planned
NOT like the Bakken/less certainty
–
–
–
Heavy/sour product requires significant additional
capex
Fewer destinations
3-4 year runway until significant new pipeline
capacity is added
Tank car market reorienting to coiled/insulated car
types
Source: RBN Energy
35
35
36. Light/Sweet Crude Logistics and Price
Differentials – November 2013
Rail
ANS
Pipeline
Light/Sweet at PNW
Bakken (rail): $92
Brent (ship): $112
Marine
$79
(wellhead)
Pacific Northwest
Refiners
PADD V
Demand
2,500
kbpd
Bakken
Clearbrook, MN
Light/Sweet at EC
Bakken (rail): $94
Brent (ship): $111
Light/Sweet
Heavy/Sour
Chicago, IL
East Coast
Refiners
California
Refiners
1,075
kbpd
Brent
PADD I
Demand
Light/Sweet
WTI:$93
Heavy/Sour
Cushing, OK
Permian
St. James, LA
Spread
Brent - WTI
LLS - WTI
WTI - Bakken
(Clearbrook)
Dec. 2012
$21.83/bbl
$20.00/bbl
Nov. 2013
$16.97/bbl
$3.45/bbl
Change
-$4.86/bbl
-$16.55/bbl
$3.00/bbl
$11.50/bbl
Light/Sweet at LA GC
Bakken (rail): $94
LLS (local): $96
$6
$8.85/bbl
Crude Prices from end of November 2013
Sources: EIA, PAALP, CIBC, CME Group,
PLG analysis (Google Earth)
TX Gulf Coast
Eagle Ford Refiners
Light/Sweet at TX GC
Bakken (pipe): $90
Brent (ship): $111
WTI (pipe): $98
LA Gulf Coast
Refiners
8,100
kbpd
Brent
PADD III
Demand
Light/Sweet
Heavy/Sour
36
37. Heavy/Sour Crude Logistics and Price
Differentials – November 2013
Rail
Oil
$63
Sands
Pipeline
Marine
Hardisty, AB
Pacific Northwest
Refiners
PADD V
Demand
2,500
kbpd
Clearbrook, MN
Light/Sweet
Heavy/Sour
PADD II
Demand
California
Refiners
3,325
kbpd
Chicago, IL
Light/Sweet
Heavy/Sour
Midwest
Refiners
Spread
Mexican Maya - WCS
Dec. 2012
$33.55/bbl
Crude Prices from end of November 2013
Sources: EIA, CME Group, CIBC, PLG
analysis (Google Earth)
Nov. 2013
$23.84/bbl
Change
-$9.71/bbl
Heavy/Sour at TX GC
Mexican Maya (ship): $87
WCS (pipe): $81
WCS (rail): $87
TX Gulf Coast
Refiners
8,100
kbpd
PADD III
Demand
Light/Sweet
Mexican Maya
Heavy/Sour
37
38. Looking Ahead:
Crude By Rail SWOT
» Primary strengths and opportunities
Rapid implementation, scale up of operations, terminals, transit times
Shorter contracts (2-3 year commitments vs. 10 years for pipeline)
Access to coastal areas not connected via pipeline
Origin/destination flexibility/facilitation of arbitrage opportunities
Foundational business (i.e. refining and E&P majors who have made a
structural commitment to CBR)
Growth in Canadian CBR – 3-4 year window
Longer-term opportunities
– Future exports of crude
– Refinery conversions in PADD III to process more light/sweet
» Primary threats and weaknesses
Exposure to changing price differentials that undermines trading
business
– Narrow WTI-Brent spread (EIA projects $8/bbl for 2014)
– Adverse benchmark alignment (i.e. WTI-LLS)
Supply Sources
Structural changes in supply
Capital
Key
Drivers
Destination
Markets
Oil Prices
– Glut of Permian and Eagle Ford light sweet oil displacing rail volumes to USGC
– Water-borne Eagle Ford crude deliveries to USEC
Continued pipeline development
Adverse commercial consequences from recent accidents
38
38
39. Looking Ahead: Crude Oil Anticipated
Production Growth and Product Flows
Oil
Sands
Export
Terminal
1,985
2,590
Heavy/Sour
Light/Sweet
+30%
Rail
Pipeline
Marine
Hardisty, AB
Pacific Northwest
Refiners
Bakken
929
1,363
Canadian East
Coast Refiners
+47%
Clearbrook, MN
Chicago, IL
California
Refiners
East Coast
Refiners
Cushing, OK
+26%
1,337
1,680
Permian
St. James, LA
Anticipated Production
Growth (000 bbl/d)
= Current 2013
= Future 2017
+35%
1,184
1,600
LA Gulf Coast
Refiners
Eagle Ford
TX Gulf Coast
Refiners
Sources: EIA, BENTEK Energy, CAPP, Railroad Commission of Texas, ND Pipeline Association, PLG Analysis (Google Earth)
39
40. Thank You!
For follow up questions and information, please contact:
Graham Brisben, CEO
+1 (708) 386-0700 / gbrisben@plgconsulting.com
40