Austin, TX (PRWEB) July 09, 2013
Stag Energy Services, an all-purpose fuel production services company, provides a variety of necessary services to oil companies and their production sites, including the transportation of crude oil and the construction of oil pipes. According to a news report by the Wall Street Journal, this transportation is about to become a good deal easier for oil refineries on the Texas Gulf Coast thanks to a series of newly constructed crude oil pipelines.
These new pipelines have begun channeling crude oil from locations in Oklahoma or inland Texas, where crude oil reserves exist in abundance, to the southeastern coast of Texas, where the largest concentration of oil refineries in the whole country sits. Before the creation of these new pipelines, this crude oil either had to sit largely untouched in warehouses or get shipped slowly by rail car to refineries where it could be put to use. Now, with the advent of this new pipeline system, this crude oil can be moved faster and safer.
“Pipelines are more efficient because they move the crude oil straight from the source to the refineries,” a Stag Energy Services spokesperson explained. “When transporting it by rail car or other vehicular methods, there are more extraneous steps involved. There’s a middleman and extra processes that raise costs and decrease productivity. And the more steps there are between the source and the refining, the higher the chances that something can go wrong. That’s usually where oil spills and disasters of that nature occur.”
Having easier and more efficient access to crude oil reserves from the middle of the United States heralds a predicted boom in the domestic fuel production market. Before the pipeline system was put into place, crude oil mined from this area of the country was left more or less stranded, unable to be accessed except in minimal amounts at a time. Because of this, gaining access to this crude oil usually involved high transportation costs that greatly reduced its commercial viability. For about the same price, coastal refineries could also import oil reserves from other parts of the United States or even internationally from Europe.
Now, however, with this new pipeline system, accessing this wealth of domestic crude fuel reserves has become a more attractive and marketable option, raising the value of the reserves and introducing more market competition in the oil industry. This glut of domestic oil production is so high, in fact, that the article predicts the Gulf Coast refineries will not be able to process all of it by themselves. In other words, for at least a while, oil supplies will meet or exceed the refineries’ demand.
The full network of new oil pipelines is slated to come online by the end of 2014. Until then, says Stag Energy Services, even a fraction of the pipeline system will prove a huge benefit to the domestic fuel industry.
ABOUT:
Stag Energy Services is a company based out of Austin, TX, that offers a wide variety of services to oil companies and fuel producers. These services include construction, equipment, repair, and personnel contracting. The company’s key policies are adaptability and diversity, allowing them to provide whatever assistance is necessary at any given site. They service some of the oil industry’s biggest names, including Halliburton, the Apache Corporation, Reliance Energy, and Limestone Exploration.