The US EIA states that Texas produced 3,140,000 barrels of oil per day in 2014. Therefore the annual production of crude oil in 2014 was around 1,146,100,000 barrels – see Figure 1. The average cost of ‘West Texas Intermediate’ crude oil was $95 in 2014. So this turns out that $108,879,500,000 worth of crude oil was produced in Texas in 2014.
The cost of transportation decides a fraction of final price of a barrel of oil. It accounts for almost 10%-15% of the final price per barrel of oil. If we are able to reduce the costs in the transportation of oil, we will be able to save a significant amount of money that can be utilized somewhere else to make the Texas economy even stronger.
A Simulation Based Approach for Evaluating the Impact of Maritime Transport on the Inventory Levels of an Oil Supply Chain