The energy sector renaissance bodes well for our industry this year and beyond.
During the U.S. energy crisis in the 1970s, it would seem unfathomable that our nation could become the world’s largest oil producer, yet that is what happened in 2014. America is now the fastest-growing energy producer in the world at a time when the country is also consuming less. For the first time in nearly two decades, we are importing less foreign oil than we produce domestically.
Eliminating dependence on imported oil from countries outside of North America has significant and positive geopolitical implications. A reduction in U.S. balance of payments, mitigation of the need to send American troops to defend national energy interests, as well as the obvious economic benefits of the U.S. acting as a global stabilizing force in the price of energy are tangible examples of how North American energy production is a game-changer.
Additionally, domestic energy-intensive industries such as steel and aluminum manufacturing and metal fabrication now have a global economic advantage because of lower energy input costs. Other U.S. manufacturing sectors will derive long-term advantages because of dependable sources of low-cost natural gas.
Transport of oil and its derivatives by rail is critical because U.S. refineries, especially those on the West Coast, were historically developed to receive crude from oceangoing vessels. Transport capacity from production regions to refineries via pipeline is seriously constrained, creating demand and opportunities for energy cargoes to transit by rail through ports. Recent affirmative steps taken by the major North American railroads to address safety concerns will help ensure environmental and physical safety while reassuring the public.
Ports are receiving inquiries about capabilities to host facilities related to the storage and/or transfer of U.S. and Canadian-produced energy cargo arriving by rail. With the appropriate safety, regulatory and environmental protection standards, this will certainly be transformative for our industry.
Bill Wyatt, Executive Director, Port of Portland