While the world debates the future of energy, a vast and intricate network of pipelines, tankers, and storage tanks—spanning continents and oceans—quietly moves the oil and gas that still powers our present, with the United States alone operating over 230,000 miles of crude oil pipelines to keep everything flowing.
Key Takeaways
- In 2023, the United States operated approximately 230,496 miles of crude oil pipelines, representing about 55% of North American crude oil pipeline mileage.
- Global crude oil pipeline throughput reached 89 million barrels per day in 2022, with North America accounting for 42% of the total.
- Canada's Trans Mountain Pipeline expansion increased capacity from 300,000 to 890,000 barrels per day by May 2024.
- In 2023, US crude oil storage capacity at Cushing, Oklahoma was 87 million barrels.
- Global floating storage for crude oil averaged 150 million barrels in mid-2023.
- China's strategic petroleum reserve capacity reached 511 million barrels by 2023.
- World refining capacity hit 102 million barrels per day in 2023.
- US refining capacity was 18.38 million bpd at end of 2023, down 0.5% YoY.
- China's refining throughput averaged 14.8 million bpd in 2023.
- World petrochemical ethylene capacity was 200 million tonnes per year in 2023.
- US polyethylene production capacity reached 23 million tonnes in 2023.
- China's propylene capacity exceeded 30 million tonnes per annum by 2023.
- In 2023, US gasoline retail sales totaled 370 million cubic meters.
- Global aviation fuel demand recovered to 95% of 2019 levels in 2023.
- Europe's diesel retail margins averaged €0.15/liter in 2023.
The midstream and downstream oil industry continues to expand its global infrastructure and trade volumes.
Downstream Petrochemicals
- World petrochemical ethylene capacity was 200 million tonnes per year in 2023.
- US polyethylene production capacity reached 23 million tonnes in 2023.
- China's propylene capacity exceeded 30 million tonnes per annum by 2023.
- Middle East ethylene crackers produce 20 million tpa, 10% of global.
- Global paraxylene capacity was 85 million tpa in 2023.
- Europe's petrochemical margins fell 40% YoY to $450/tonne in 2023.
- US Gulf Coast added 2 million tpa ethylene capacity post-Hurricane Ida.
- Saudi Arabia's SABIC produces 9 million tpa of petrochemicals.
- Global benzene demand reached 50 million tonnes in 2023.
- India's petrochemical capacity utilization was 75% in FY2023.
- Qatar's petrochemical output grew 15% to 5.5 million tonnes in 2023.
- US polypropylene capacity is 8.5 million tpa, with 90% utilization.
- Global methanol capacity surpassed 120 million tpa in 2023.
- Europe's aromatics production fell 5% to 18 million tonnes in 2023.
- China's coal-to-olefins capacity reached 15 million tpa.
- US butadiene production was 1.2 million tonnes in 2023.
- Global PET resin capacity is 90 million tpa, Asia 70%.
Downstream Petrochemicals Interpretation
While the world's chemical arteries pump out staggering volumes, from America's polyethylene to China's coal-powered propylene, the real story is found in the squeezing margins and strategic expansions, where the relentless economic pulse of this industry is both fueling our modern world and ruthlessly testing its players.
Downstream Refining
- World refining capacity hit 102 million barrels per day in 2023.
- US refining capacity was 18.38 million bpd at end of 2023, down 0.5% YoY.
- China's refining throughput averaged 14.8 million bpd in 2023.
- India's refining capacity reached 5.5 million bpd with Dangote refinery adding 650,000 bpd.
- Middle East refineries operated at 78% utilization in 2023.
- Europe's refining capacity declined by 1.2 million bpd since 2019.
- Saudi Arabia's refining capacity is 3.3 million bpd across 7 refineries.
- Global refinery margins averaged $8.50 per barrel in 2023.
- US refinery utilization rate was 91% in 2023.
- Russia's refining throughput fell to 5.2 million bpd in 2023 due to sanctions.
- Vietnam's Nghi Son refinery processes 200,000 bpd at 95% utilization.
- Global complex refinery capacity (Nelson Complexity >10) is 25% of total.
- Singapore's refining capacity is 1.5 million bpd, hub for clean products.
- Mexico's Dos Bocas refinery reached 340,000 bpd capacity in 2024.
- Japan's refining capacity contracted to 3.2 million bpd by 2023.
- UAE's Ruwais refinery complex produces 800,000 bpd of products.
- Global hydrocracker capacity grew by 1.5 million bpd 2018-2023.
- US PADD 3 Gulf Coast refineries process 50% of US crude.
- In 2023, global gasoline production from refineries was 25 million bpd.
Downstream Refining Interpretation
The world's refineries are humming along at over 102 million barrels per day, proving that while we're all talking about an energy transition, the oily heart of the global economy is still beating quite loudly.
Downstream Retail
- In 2023, US gasoline retail sales totaled 370 million cubic meters.
- Global aviation fuel demand recovered to 95% of 2019 levels in 2023.
- Europe's diesel retail margins averaged €0.15/liter in 2023.
- US retail gasoline prices averaged $3.52 per gallon in 2023.
- India's fuel retail sales grew 8% to 220 million tonnes in FY2023.
- China imported 11.3 million bpd of crude for retail fuels in 2023.
- Global LPG retail consumption hit 320 million tonnes in 2023.
- Brazil's retail fuel stations number 45,000 with Petrobras 60% market share.
- US convenience store fuel sales revenue was $450 billion in 2023.
- Saudi Arabia's domestic fuel consumption reached 3.5 million bpd.
- Europe's EV charging points overtook fuel stations in Norway by 2023.
- Global jet fuel retail supply chain handled 85 million tonnes in 2023.
- Mexico's retail gasoline prices liberalized, averaging $1.10/gallon.
- Australia's fuel retail market valued at AUD 50 billion annually.
- US diesel retail sales fell 5% to 190 billion gallons in 2023.
- Global bunker fuel demand was 210 million tonnes in 2023.
Downstream Retail Interpretation
While the world's drivers and airlines guzzled gasoline and jet fuel near pre-pandemic levels, Europe's razor-thin diesel margins and the quiet creep of EV chargers past gas stations in Norway hinted at the profound and uneven transition already reshaping the fuel beneath our feet.
Industry Economics
- In 2023, global oil demand reached 102 million bpd, up 2.3% YoY.
- Midstream sector capex projected at $120 billion annually through 2028.
- Downstream M&A deals totaled $50 billion in 2023.
- US midstream EBITDA grew 10% to $75 billion in 2023.
- Global refining investments declined to $20 billion in 2023.
- Oil & gas midstream debt levels averaged 3.5x EBITDA in 2023.
- Downstream profit margins hit $12/bbl crack spread average 2023.
- Asia-Pacific downstream market size valued at $1.2 trillion in 2023.
- US pipeline company dividend yields averaged 7% in 2023.
- Global LNG trade value reached $150 billion in 2023.
- European downstream losses exceeded €10 billion in 2022-2023.
- Permian midstream bottlenecks cost producers $5/bbl in 2023.
- Global petrochemical revenue grew 5% to $600 billion in 2023.
- US downstream tax revenue from fuels was $40 billion in 2023.
- Midstream tolling fees averaged $0.50/bbl for crude transport.
- World oil trade balance showed 2 mb/d surplus in 2023.
- Downstream digitalization investments hit $15 billion globally 2023.
- Asia fuel retail market CAGR projected 4% to 2030.
- Global midstream asset retirement costs estimated $200 billion by 2040.
Industry Economics Interpretation
While global oil demand's thirsty rise to 102 million barrels per day in 2023 proves the world still runs on it, the industry is a study in sharp contrasts, with US midstream raking in cash and paying fat dividends while European refiners bleed and the sector faces a colossal $200 billion retirement bill for its aging infrastructure.
Midstream Storage
- In 2023, US crude oil storage capacity at Cushing, Oklahoma was 87 million barrels.
- Global floating storage for crude oil averaged 150 million barrels in mid-2023.
- China's strategic petroleum reserve capacity reached 511 million barrels by 2023.
- US LNG storage capacity totals 116 bcf across 115 facilities as of 2024.
- Singapore's oil storage hub capacity exceeds 55 million barrels.
- Netherlands' Rotterdam port oil storage capacity is 45 million cubic meters.
- Qatar's Ras Laffan LNG storage holds 12 million cubic meters across 14 tanks.
- US Gulf Coast refined product storage capacity is 500 million barrels.
- South Korea's Ulsan terminal stores 20 million barrels of crude and products.
- Global underground gas storage capacity is 4,200 bcf, with Europe holding 45%.
- Iran's floating storage for sanctioned oil averaged 30 million barrels in 2023.
- US working gas in storage peaked at 3,766 bcf on November 10, 2023.
- Abu Dhabi's Ruwais storage complex holds 42 million barrels.
- LNG regasification terminal storage in India totals 15 million cubic meters.
- Nigeria's floating LNG storage at 3 million tonnes per annum capacity.
- Europe's gas storage fill rate reached 90% by November 2023.
- Houston Ship Channel terminals store 100 million barrels of petroleum products.
- Global VLCC tanker storage utilization was 12% in Q2 2024.
Midstream Storage Interpretation
While the world nervously eyes floating barrels and strategic stockpiles, the real story is a logistical chessboard where every tank and terminal holds a move in the global game of energy security.
Midstream Transportation
- In 2023, the United States operated approximately 230,496 miles of crude oil pipelines, representing about 55% of North American crude oil pipeline mileage.
- Global crude oil pipeline throughput reached 89 million barrels per day in 2022, with North America accounting for 42% of the total.
- Canada's Trans Mountain Pipeline expansion increased capacity from 300,000 to 890,000 barrels per day by May 2024.
- In Europe, the total length of natural gas pipelines exceeded 250,000 km in 2023, with Russia supplying 40% of pipeline gas imports pre-2022.
- Permian Basin crude oil pipelines exported 5.7 million barrels per day to Gulf Coast refineries in Q4 2023.
- India's crude oil pipeline network spans 18,000 km as of 2024, handling 4.5 million barrels per day.
- LNG shipping volumes grew by 5% to 474 billion cubic meters in 2023 globally.
- US natural gas pipeline exports to Mexico averaged 7.5 billion cubic feet per day in 2023.
- China's West-East Gas Pipeline transports 60 billion cubic meters annually across 7,500 km.
- Brazil's Rota 3 pipeline system moves 1.2 million barrels per day of crude from Santos Basin.
- Middle East crude oil tanker loadings averaged 19.5 million barrels per day in Q1 2024.
- Africa's LNG export capacity reached 100 million tonnes per annum by 2023.
- US Gulf Coast crude-by-rail shipments peaked at 700,000 barrels per day in 2014 but fell to 100,000 bpd in 2023.
- Norway's Gassco pipeline system transports 100 billion cubic meters of gas annually.
- Australia's domestic gas pipeline network spans 35,000 km with 2.5 bcf/d capacity.
- Global oil product tanker fleet capacity stood at 415 million deadweight tonnes in 2023.
- Russia's ESPO pipeline delivers 1.6 million bpd of crude to Asia-Pacific markets.
- US shale gas pipeline additions totaled 10 bcf/d between 2018-2023.
- Europe's Trans Adriatic Pipeline (TAP) capacity is 10 bcf/d for Azerbaijani gas.
- Saudi Aramco's East-West Pipeline carries 5 million bpd across 1,200 km.
Midstream Transportation Interpretation
While the global stage is a dizzying map of pipes, tankers, and geopolitical chess moves, it's sobering to see that the continent, and the United States in particular, remains the undeniable heavyweight champion of getting oil and gas from the wellhead to the rest of the world.
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