Total U.S. and Canadian crude oil production is projected to reach a record high in 2016 of approximately 12,100 Mb/d, outpacing U.S. demand growth. U.S. oil imports, excluding supply from Canada, are projected to drop 41% by 2016.

Thursday, January 19, 2012

BENTEK’s new Market Alert, Crude Awakening: Shale Boom Hits Oil, announces that combined U.S. and Canadian crude oil production will increase 3,100 Mb/d by 2016, reaching 12,100 Mb/d and surpassing the previous record set in 1973. BENTEK expects U.S. oil production to increase 2,200 Mb/d during this time, most of which will be light or intermediate crudes. In addition, crude oil imports from Canada to the U.S. are expected to rise 900 Mb/d.

BENTEK’s new Market Alert, Crude Awakening: Shale Boom Hits Oil, provides a comprehensive review of the U.S. oil market and its potential growth over the next five years, including implicit industry challenges and implications. This Market Alert details current drilling and production activity in the most active U.S. and Canadian oil plays, including five-year production forecasts. Crude Awakening: Shale Boom Hits Oil is made up of six individual sections that focus on specific logistical groupings of the major U.S. petroleum districts (PADDs 1 through 5), Canada and a final section that summarizes major conclusions.

Key Takeaways:

• The projected 3,100 Mb/d increase (36%) in U.S. and Canadian oil production and the 900 Mb/d increase in Canadian oil exports to the U.S. between 2011 and 2016 will outpace demand growth.

• U.S. oil imports (excluding imports from Canada) are projected to drop 41%, or 2,800 Mb/d, to an average of 3,900 Mb/d in 2016.

• More than 75 pipeline expansions, 25 rail projects and seven refinery expansions will help alleviate oversupply in some areas.

• The WTI-Brent price spread is expected to average minus $13 from 2012 through 2016, with WTI discounts of only $3 in 2013 and 2014 after pipeline expansions link Cushing to the Gulf Coast, but much larger discounts in 2016 as supply grows.


Crude Oil Production Monitors– Provide comprehensive U.S. and Canadian coverage of the leading oil plays, including regional production forecasts, drilling activity, transportation and refining constraints and pricing analysis.
Geospatial layer bundle – Includes many of the pipelines and related infrastructure reviewed in Crude Awakening: Shale Boom Hits Oil.
Data package – Analyze the datasets behind the graphs and charts in Crude Awakening: Shale Boom Hits Oil.

To learn more, please contact your BENTEK sales representative, call BENTEK Sales at 1-888-251-1264.