Oil Voice
Bentek U.S. Midwest crude oil market will be oversupplied from plays like Bakken

Thursday, February 16, 2012

Bentek Energy announced the availability of the PADD 2 (Midwest) section of its Crude Awakening: Shale Boom Hits Oil Market Alert, which forecasts that Midwest crude oil supply will double during the 2011-16 period, growing nearly 808,000 b/d by 2016. BENTEK projects the production growth will include increases of 547,000 b/d in the Williston-ND, 97,000 b/d in the Anadarko and 131,000 b/d in the Utica (Appalachia-OH). Despite these massive supply gains and six currently announced Midwest refinery expansions, crude oil demand from regional refineries is projected to grow only 3% or 108,000 b/d during this time. Transportation projects such as the Seaway and Keystone XL pipelines are expected to provide only temporary relief to ongoing oversupply conditions. Consequently, regional oil prices are projected to remain deeply depressed.

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