Too often, the role of midstream energy infrastructure -- that complex and integrated system of pipelines, railroads, ports, waterways, roads and storage facilities -- is overlooked. U.S. refiners and petrochemical manufacturers rely on this infrastructure to efficiently move crude oil, natural gas liquids and other feedstocks from production sites to
Federal, state and local governments must act to strengthen our infrastructure for the 21st century.
refineries and petrochemical facilities, and to transport fuels and other vital products from those plants to American manufacturers and consumers. Though companies are investing significantly in midstream infrastructure to ensure it can keep pace with record U.S. natural resource production, federal policies often stall these critical projects.
A new study by The American Fuel & Petrochemical Manufacturers (AFPM), "The Fuel & Petrochemical Supply Chains: Moving the Fuels & Products That Power Progress," sheds light on the workings of U.S. midstream energy infrastructure, which in 2017 moved approximately 43.3 million barrels of crude oil, refined products and natural gas liquids, and 79.1 billion pounds of plastic resins each day. The report highlights the importance of midstream infrastructure and its role in facilitating access to affordable fuels and products, bolstering American participation in global energy markets and driving our economy forward.
The refining industry, for example, relies on pipelines, ports, waterways and railroads to bring crude oil from wellheads to refineries, where it is processed into the transportation fuels that move America, including gasoline, diesel and jet fuel.
Similarly, the petrochemical industry relies on pipelines to move natural resources to its facilities, where they are processed into the essential building blocks for a myriad of products that define modern life. Petrochemical manufacturers also rely on midstream infrastructure to deliver products from their facilities to manufacturing plants in America's industrial heartland, where they are transformed into countless finished goods, ranging from car parts to life-saving medical devices to electronics and food storage containers.
As domestic crude oil and natural gas production increases -- offering the U.S. unprecedented economic opportunities -- investment in existing and new U.S. midstream energy infrastructure is essential. Last year, refinery utilization averaged 90 percent for the third year in a row, and petrochemical manufacturing is growing at the fastest rate in more than 50 years -- a surge fueled by growth in domestic energy production. We have seen U.S. crude oil production increase by almost 40 percent -- from 5.5 million barrels per day in 2010 to 8.9 million barrels per day in 2016. During that period, oil pipeline mileage in the U.S. grew by only 25 percent.
Continued investment in the midstream sector -- a priority for refiners and petrochemical manufacturers -- to maintain, modernize and expand critical infrastructure supports the ongoing U.S. energy renaissance that has bolstered the nation's economy, spurred job creation, reduced the trade deficit and enhanced the quality of life for Americans. If planned energy infrastructure projects are approved, that investment is projected to employ 1 million individuals annually across the U.S. through 2035. It will also allow our industries to transport energy safely, efficiently and in an environmentally responsible manner.
Unfortunately, current permitting processes and duplicative regulatory requirements often delay needed infrastructure projects, burdening developers with years of paperwork, bureaucratic challenges and legal complications.
Federal, state and local governments must act to strengthen our infrastructure for the 21st century and consider the critical role of oil and natural gas in the U.S. Policies that promote investments in midstream infrastructure will better enable our industries to help realize the full benefits of America's energy renaissance and enhance American innovation and competitiveness at home and abroad.
For more information, visit www. afpm.org or call (202) 457-0480.
