The growth in U.S. shale oil production is threatening to create bottlenecks in refineries, new research from Wood Mackenzie has revealed . The research suggests the United States needs new refining capacity to absorb all the additional production that is coming on stream in the shale patch. Over the next five years, Wood Mac expects U.S. shale producers to add some 4 million bpd to their daily production. However, current refining capacity could only absorb between 900,000 and 1 million bpd. This means that the bulk of the additional production will have to go abroad, competing with Middle Eastern and African crude. It’s not only a question of physical capacity, either. The increase in crude oil production will be accounted for by light and extra light crude, or condensate. But Gulf Coast refineries are equipped to process the heavier grades. Wood Mac’s researchers note that refiners in the U.S. […]