Singapore: The complex web of US pipelines, tanks and export terminals that’s helped make America the world’s top oil producer is causing a headache for some crude buyers.
As various types of crude pass through the supply chain from inland shale fields spanning Texas to North Dakota, they risk picking up impurities before reaching Asia —the world’s biggest oil-consuming region. Specifically, refiners are worried about the presence of problematic metals as well as a class of chemical compounds known as oxygenates, which can affect the quality and type of fuel they produce.
Two refiners in South Korea—the top buyer of US seaborne supply— have rejected cargoes in recent months due to contamination that makes processing difficult. Growing North American output from dozens of fields pushes everything from highly-volatile oil to sticky residue through shared tributaries and trunk pipes.
