John O'Brien Presents at the Shell Producer Conference
May 21, 2015
John O’Brien delivered a presentation to the Shell Producer Conference in Lake Charles, Louisiana. Mr. O’Brien discussed the current state of the U.S. refining industry and its potential to process all of the expected new light tight oil (LTO) being developed in production areas such as the Bakken, the Eagle Ford, and the Permian Basin. His presentation concluded that with relatively modest new investments, as well as investments currently underway, the industry should be able to accommodate all the LTO projected to be available based the Energy Information Agency’s latest Annual Energy Outlook. This can be done through a combination of: (1) full utilization of existing capacity; (2) announced refinery capacity expansions and additions; and (3) displacement of foreign imports through direct substitution or blending. As much as 30% of current imports could potentially be displaced.
Please click here for the full presentation.