Wonder

Research Outline

Prepared for Veritas S. | Delivered July 30, 2020

U.S. Oil, Natural Gas, and Natural Gas Liquids

Goals

To provide an overview of select commodities markets in the U.S., specifically: the supply and demand volumes for oil, natural gas, and natural gas liquids in the West Coast, Rockies, Mid-Continent, Gulf Coast, Northeast, and Texas; the transportation volumes by commodity (oil, natural gas, and natural gas liquids) and by mode (pipe, rail, truck, water) for each region; a list of preferably small independent marketing and distribution firms active by area (location) or commodity (oil, natural gas, and natural gas liquids); business risks faced by these marketing and distribution firms in the various regions; and economic trends in oil, natural gas, and natural gas liquids in the various regions.

Early Findings

Insights on U.S. Production (Supply) and Consumption (Demand) of Oil, Natural Gas and Natural Gas Liquids According to the July 2020 analysis by the U.S. Energy Information Administration, the production (supply) and consumption (demand) of crude oil, natural gas, and natural gas plant liquids in the U.S. in 2020 is:
Production of crude oil : 11.63 million barrels per day. In the West Coast, production was 718,000 barrels per day as at April 2020 and   274,000 barrels per day from Rocky Mountain
Consumption of petroleum and other liquid fuel : 17.7 million barrels per day
Production of natural gas: 95.4 billion cubic feet per day (including Gulf of Mexico); 92.85 billion cubic feet (excluding Gulf of Mexico)
Consumption of natural gas: 82.35 billion cubic feet per day
Production of natural gas plant liquids: 4.9 million barrels per day
Consumption of hydrocarbons gas plant liquids: 3.02 million barrels per day

Insights on Transport ModesIn 2019, 75.8% of the crude oil and petroleum products was transported by pipeline, 14.4% was by water carriers and 9.8% was by rail
In the U.S. natural gas is transported almost entirely by pipeline, and over 90% of crude oil and refined petroleum products are transported by pipeline at some point. 
In 2018, nearly 28 trillion cubic feet of natural gas was transported by pipeline.