The following mini-lecture traces the flow of crude oil from the wellhead to the refinery using various forms of transportation. We also discuss the two global standards for crude oil, West Texas Intermediate, and Brent North Sea. The major supply/demand districts in the US are presented, as well as supply and demand statistics.
Key Learning Points for the Mini-Lecture: Crude Oil Logistics & Refining
While watching the Mini-Lecture, keep in mind the following key points and questions:
- Wellhead to retail pump infrastructure
- What are the costs and revenue opportunities on the “value chain”?
- “West Texas Intermediate” crude oil vs. “Brent North Sea” oil
- What are “PADDs”?
- Supply & Demand overview