The change in crude oil dynamics in the US is fascinating, and driving much growth particularly in Midstream. The supply of unconventional oil (think Shale) is driving both pipeline and rail supercycle of capital expenditures… and for the first time our domestic supply may halt imports.
And the cheap and abundant shale gas has lowered fuel cost for energy intensive refining. This may just increase downstream margins, as we start looking at exporting refined fuels. Never in a million years would I have imagined the US to be in such a global competitive position from an energy point of view!
I picked up a lot of facts around this at the Hart Energy breakfast, during Greg Haas’s presentation.