A Special Industry Study
Third Edition (Previous Editions in 2011 and 2013)
"Opportunities in Tank Barges Related to Crude
Oil Production and Movement"
Over the last 20 years, the new technology of
hydraulic fracturing and horizontal drilling has emerged, tapping natural gas
and crude oil that was previously inaccessible. This has enabled US crude oil
production to increase from 3.8 million barrels per day just six years ago to
now topping 9.0 million barrels—a 137 percent increase—and production is seen
rising further still, creating opportunities. The increased energy
production is altering the entire liquid transportation market. As
transportation routes expand and adjust to meet the need, new challenges
arise—such as the recent, dramatic increase in crude petroleum barge loadings.
All indications point to the increases in crude oil production from natural gas
and oil site extraction, continuing in areas tributary to the river system.
In this Third Edition study, Informa summarizes the current supply, demand and
rate outlook for the liquid barge market with conclusions on key market drivers
to monitor. With this information, participants can develop a strategy with
respect to investment in and use of liquid tank barges.
Over the last 20 years, new technology has emerged
tapping natural gas and crude oil that was previously inaccessible because it
was trapped in shale that has low permeability or is “tight.” The primary new
technologies include hydraulic fracturing and horizontal drilling. The use of
such technologies was expensive to employ and uneconomical until the price of
crude oil turned higher. At the end of 2001, crude oil was priced under $20 per
barrel, and then ran up to more than $140 per barrel in 2008. The price has
fallen and ranged from $75 to $110 per barrel, which could be the new midpoint
price as shown in Figure 1.
Meanwhile, from the peak of the market in September
2008 until November 2014, U.S. crude oil production has increased from 3.8
million barrels per day to 9.0 million (or an increase of 137%), and is expected
to increase further still, which is now creating transportation opportunities.
These higher price levels also have triggered an expansion in shale extraction
production as shown in Figure 2.
The increased energy production is altering the
entire liquid transportation market. As the transportation routes expand and
adjust to meet the need, new challenges arise. For example, barge locking
information queried through the Army Corps Lock Performance data indicated a
dramatic increase in crude petroleum barge loadings. All indications point to
the increases in crude oil production from the natural gas and oil site
extraction continuing in areas tributary to the river system, and an important
question continues to be asked “what adjustments remain by the inland barge
industry in the short and long term to handle this increased volume?”
Study Table of
The entire prospectus and
enrollment in pdf form
additional information or to enroll, please contact:
Mr. Thomas P. Scott
Chief Executive Officer
775 Ridge Lake Blvd., Suite 400
Memphis, TN 38120
Senior Vice President
775 Ridge Lake Blvd, Suite 400
Memphis, TN 38120