Technology changes everything. Stronger, better, smaller and faster seems to be its perpetual mandate. It has opened up worlds never before imagined and allowed advancement in ways once deemed impossible. No matter what industry you’re in, it will affect you.
So, what does technology have to do with Boston Crude Oil?
Well, for starters, it’s the reason for the latest US oil boom. For the last seven weeks, the price of oil has continually dropped due to market surplus. There are many oil producing states, but it’s North Dakota that is making headlines.
By the Numbers
- Surged from producing 97,000 bbl per day in 2005 to 887,000 bbl per day in 2013.
- Moved into 2nd place from 8th for oil production in US.
- Has over 9,000 active wells; each expected to bring about $20 million in profits.
- Represents 42 per cent of recent growth in US oil production.
- Oil yield could double in 8 years; number of wells could reach 50,000.
Thanks to hydraulic fracturing or “fracking”, the state has been able to access resources in the “Bakken Shale Formation” that were discovered in 1951, but remained untapped until more recently.
The concept of fracking has actually been around since the late 1800s. However, instead of torpedoes, gunpowder, and explosives, the current technology utilizes high-pressure water jets, chemicals and sand, combined with improved techniques of horizontal drilling.
These new methods have also reduced the carbon footprint from traditional oil drilling. Horizontal and directional drilling allow for wells to be combined on one small pad, reducing the surface area of operation by as much as 90 per cent. In turn, less pipelines and roads are required to service the wells and that also means reduced overhead costs for producers.
With each passing month, the number of wells in North Dakota continues to rise. Last year, crude oil bottlenecked because distribution couldn’t keep up with production. Fortunately, the infrastructure to transport the oil has developed far more quickly than anticipated.
New railways have since been constructed to refineries in locations such as Ferndale, Tacoma and Vancouver. Plans for additional railways, new pipelines, more storage tanks and truck bays are also in the works to accommodate growing inventory projections.
Sharing The Wealth
All of this is good news for both fuel distributors and consumers. Being able to access the increased oil supply in the regional market translates to:
- Lower prices.
- More level prices from one region to another.
- Less risks premiums in the market.
A sure way to stay on top of market changes and industry developments is to work with a leading edge fuel distributor. If they have contracts with every available major brand and supply at every terminal in the Pacific Northwest, you will have the advantage of best products at best prices for your business. They will also embrace technology and be able to offer services utilizing the most advanced equipment, products and solutions. Make your own headlines by contacting your fuel distributor today.