Offshore oil and gas projects at the U.S. Outer Continental Shelf (OCS) will be beneficial not only to the economy, but also spur a need for more energy storage, according to studies cited by the American Petroleum Institute (API).
An above-ground storage tank, for instance, allows energy companies to store oil temporarily until they are ready to ship it overseas. As the oil export boom continues, many companies will also lead to bigger demand for pipelines and export terminals.
Calash and Northern Economics conducted four regional studies that comprise the Atlantic OCS, Pacific OCS, Eastern Gulf OCS and the Alaska OCS. These predicted that there would be more than $591 billion of investments over a 20-year period, due to the opening of the OCS for energy exploration.
Aside from the robust economic activity, the projects would also support around 743,500 jobs across the U.S. during the same period. Erik Milito, API director of upstream and industry operations, believes that opening the OCS will allow energy firms to access “more than 94 percent of the total acreage in federal offshore waters.”
The projected growth in offshore oil and gas investments at the OCS region will coincide with a rise in U.S. crude exports, which could reach five million barrels per day by 2023, according to the International Energy Agency (IEA).
However, this will require a major revamp of transportation infrastructure in regions in the Gulf Coast such as the Permian Basin. Aside from the BridgeTex, Permian Express and Cactus pipelines, newer projects should be launched to accommodate the increasing oil production from U.S. shale fields.
More storage and distribution facilities will be necessary to handle the anticipated increase in oil and gas production, aside from export capacity. How do you plan to prepare for the expected increase in oil and gas projects?