We’ve been on a roll with supply and trading recently, but that’s just because there’s so much to unpack with midstream and downstream operations. Today we’re focusing on the four major US supply and refining centers.
On that note, supply and refining centers are much different in Europe than they are in the United States. There’s over 25 different supply networks spread out all over the continent, while here there’s just a few hotspots to go to. Here they are:
- US Gulf Coast
- East Coast and New York Harbor
- West Coast and Alaska
- The Chicago Market
These hubs are essential for quickly responding to supply and demand changes. For instance, the US Gulf Coast hub sports 47 different refineries, and takes on 44% of the refining capacity of the United States. This important hub has the capability to refine 7.7 million barrels of crude oil per day.
The New York Harbor and New Jersey shorelines have nearly 56 refineries, with the ability to store 75 million barrels of crude oil. It’s the largest petroleum hub on the Eastern United States.
Chicago houses the Whiting Refinery–the sixth largest refinery in the United States with the capacity to produce 400,000 barrels of oil per day.
And the refineries near San Francisco, Los Angeles, Alaska, and upstate Washington help supply the west coast with a steady stream of oil as well.
While all four hubs are pretty massive, the US Gulf Coast takes the cake regarding refining capacity.
Photo credit: bp.com