Potential Keystone XL refineries continue to increase exports

We have repeatedly documented how refineries that would be served by the Keystone XL Pipeline are America’s leading export refineries.

This trend has continued in 2013.

Since 2008, when the application for the permit was first submitted to the Department of State, Gulf Coast exports of petroleum products have soared 172%.

Figure 1: US and Gulf Coast Petroleum Product Exports since 2008

Source: U.S. Energy Information Administration

Many Gulf Coast refineries have access to deep water port facilities and the region now produces much more product than the US markets can handle. Throughout the 2008-2013 period, the Gulf Coast refineries averaged 73% of US oil exports.  In 2013, that rose to 76%.

Figure 2: U.S. Petroleum Product Exports are mostly from the Gulf Coast

Source: U.S. Energy Information Administration

But it is important to note that the Gulf Coast refining region, defined by the EIA as PADD 3, includes a number of inland refineries without access to export facilities.  Keystone XL would supply a group of refineries in the Port Arthur, Houston, Texas and Lake Charles, Louisiana area that all have excellent access to export facilities.

Our research has shown that the Texas Gulf Coast refineries that KXL will predominately supply exported 60% of their finished gasoline production in 2012.  They also exported over 40% of their diesel and 95% of their petcoke.

Table: Production and Export Data for Texas Gulf Coast Refineries

This trend has likely continued into 2013.