Booming production in new plays, like the Bakken Shale in North Dakota, have led to record storage at Cushing, Ok., one of the major hubs for crude oil.
Crude oil production increased almost 14 percent in the last year alone, according to the American Petroleum Institute. But domestic demand is dropping and US crude cannot be shipped to foreign refineries because of an export ban.
While many are calling for more pipelines to solve the storage issue, the best long-term solution is to build new refineries, said Bernard Weinstein, associate director of Maguire Energy Institute, at a Thursday morning breakfast.
“I think the ultimate solution to Cushing is to build more refining capacity,” Weinstein said, noting that there has not yet been a major new refinery built in the US since the 1960s.
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