With domestic crude production hitting record highs, new oil infrastructure is being built to handle the larger supplies.
The extraction of oil is an extremely important part of producing viable energy supplies that can be used throughout the country to spur economic growth. Because of the number of different industries that run on oil – from transportation to power providers – the need for production is strong. However, barrels of crude by themselves are not enough to be able to service the many sectors that use the fuel.
New refineries to be built
Refineries play an important role in making the fuel source commercially viable. While these parts of the oil economy have been functioning for quite a while, because of the lack of domestically produced supplies in the country, the existing ones throughout the country were able to handle these numbers.
However, with the recent shale growth that has rejuvenated the country's oil economy, the demand for these kinds of processes has increased. On top of this, some of the new major oil plays, like the Bakken formation in North Dakota, do not have enough refinery processes to handle their output. 24/7 Wall Street explains that a refinery has not been built in the U.S. in more than 35 years.
The news source reports that to handle these demands, two new refineries are in being constructed. One of these is under construction in North Dakota and will be capable of handling 20,000 barrels per day. Another refinery is being constructed in Green River, Utah, which will be able to handle 10,000 barrels per day. It should be operational by mid 2015.
Record production numbers
These new facilities will help with the refining of a record amount domestic oil production. According to the American Petroleum Institute, August marked the biggest month of the year for petroleum deliveries, with an average of 19.1 million per day.
On top of this, production saw record highs as they reached a 25 year high of 7.6 million barrels per day. These numbers translated into refineries seeing gross inputs increase as well, increasing 4.2 percent from the same time last year to 16.3 million barrels per day.
This high circulation means that the oil industry throughout the country is strong. With more infrastructure being produced to turn barrels of crude into commercially viable power sources, the shale oil boom is playing a larger role in the country's economy.