SupplyChain Magazine October 2014 | Page 10

LOGISTICS
WITH CONGRESS CONTINUING to wrangle over any decision regarding the Keystone XL pipeline , the US energy industry is taking matters into its own hands .
Oil-starved markets are primed for an influx of Canadian crude oil , but with pipeline transport off the table for the foreseeable future , producers are starting to develop an alternative supply chain infrastructure to meet the demand .
The problem is , recent disasters have soured legislators and environmentalists on road and rail for moving oil , drawing intense scrutiny and calls for increased regulation .
Alongside political uncertainties are other wildcards like extreme weather and an emerging logistical infrastructure , which can all impact the flow of goods . That makes the proposition of a non-pipeline solution particularly thorny .
How should supply chain decision makers position to connect with premium energy markets , manage the attendant risks , while also addressing the strong likelihood of an increased regulatory burden ?
From the source of the commodity to the end consumer , the ability to

“ Oil-starved markets are primed for an influx of Canadian crude oil , but with pipeline transport off the table for the foreseeable future , producers are starting to develop an alternative supply chain infrastructure to meet the demand ”

track energy assets in real-time is set to become more important than ever .
Boom Times for North American Energy Producers Production from Canada ’ s oil sands is on the rise , with output expected to nearly double by 2030 to 6.7 million barrels per day . That accounts for about 98 % of the country ’ s oil reserves .
Primary market opportunities exist in both Canada and the US , where replacements for offshore imports are desired . Getting the oil to premium and secondary markets however is
10 October 2014