Light Oil in Heavy Times: The Growing North American Quality Mismatch

摘要

North American crude production and refining capacity are still searching for balance. The shale revolution has transformed the US upstream industry, and the global oil markets. The US' expanded global role helped create the conditions that led to the 2014 price collapse. The impact of low prices is still unfolding, but the shale industry is proving surprisingly resilient, at least so far. The shale oil (or Light Tight Oil - LTO) boom gave refiners both opportunities and operating challenges. Decades-old refinery investment strategies came under question, and refiners benefited from US producers' restricted market access. Unrestricted crude exports have now begun, but the impacts on producers and refiners are still uncertain, with the current oil market environment adding to uncertainty.