Proceedings magazine is a communication tool for the Coast Guard's Marine Safety & Security Council. Each quarterly magazine focuses on a specific theme of interest to the marine industry.
Issue link: http://uscgproceedings.epubxp.com/i/578020
9 Fall 2015 Proceedings www.uscg.mil/proceedings crude oil from producing felds, rail lines can deliver mate- rials such as water, tubular materials, chemicals, and con- struction consumables oil producers need. Trucks Trucks are not generally economical for bulk, long-distance petroleum liquids transportation. However, trucks offer great fexibility and are used extensively in a variety of com- paratively short-haul applications. For example, trucks are used in some locations to move crude oil from production wells to storage depots for subsequent transfer to railcars or pipelines. They are used extensively for local distribu- tion of gasoline, diesel fuel, heating oil, liquid propane, and butanes. Tankers U.S. law does not currently allow crude oil exports, other than by special exception. Consequently, few tankers export crude oil. However, refned petroleum products and HGL can be exported, and such exports have been increasing in recent years. With a surplus of domestic crude oil and export restrictions, it is logical for refners to export as many refned products as is economically feasible. At the same time, crude oil imports are expected to decline or remain fairly steady. According to a recent Congressional Research Service report, the U.S. now imports less oil by oceangoing tank- ers than fve years ago, while more oil is moving domesti- cally via river and coastal barges. Additionally, the majority of U.S. refneries are located near navigable waters to take advantage of economical waterborne transport for import and export. However, refneries wishing to switch from imported crude to domestic crude oil may encounter economic and logistical impediments. The Jones Act (a 1920 law that seeks to protect U.S. shipyards and U.S. merchant sailors in the interest of national defense) restricts domestic waterborne transport to U.S.-built and -crewed vessels. The purchase price of U.S.- built tankers is reportedly higher than foreign-built tankers, and U.S. crewing costs can be several times those of foreign- fag ships. In addition, the small number of U.S.-built tank- ers makes it diffcult for shippers to charter tankers for a short period or even a single voyage — a shipping pattern that is highly desirable in an oil market with shifting supply. Gas Transportation Gas Statistics ► Raw gas is transported in pipelines to stripping plants, where propane and natural gas plant liquids are extracted to create "pipeline" natural gas, comprised primarily of methane. Natural Gas ► Natural gas (methane) is transported in pipelines as a gas or may be liquefed for transportation or compressed for long-term storage. ► Export LNG facilities are located on the water, where tankers transport it overseas. ► LNG transport via rail is currently prohibited. ► Liquefed natural gas truck transport is costly and limited to short distances. ► There are currently no barges capable of transporting LNG. Other Gases ► Other gases are liquefied and /or compressed for storage or truck, rail, barge, or tanker transport, depending on stripping plant location and end use. ► Rail and truck transport for propane and natural gas liquids is common. HGL Production from U.S. Gas Processors and Refneries, 2004–2014 HGL Production from U.S. Gas Processors, 2004–2014 The chart on the left shows historic HGL production from all sources, while the chart on the right shows HGL production just from natural gas processing plants. Between 2008 and 2014, HGL production from natural gas processing plants increased by 62 percent to 2.9 million b/d from 1.8 million b/d. Chart data from EIA, Hydrocarbon Gas Liquids (HGL): Recent Market Trends and Issues, November 2014.