Research paper
Education institution
Which of the components of the petroleum energy sector: refineries or transportation is more vulnerable? Do you think refineries is and why?
In the question, regarding the petroleum infrastructure, refineries is definitely a more vulnerable component, than the transportation pipelines, thus more valuable. When talking about the possible threats these two segments might face, we can start with a simple power or natural gas shortage, and end with a natural cataclysm or a terrorist attack, which can physically damage or even demolish the plant or a pipeline itself. But there is one big difference between the consequences of such possible events: if the pipeline is damaged, short-term inconveniences will be caused to the economy, by delaying some amounts of finished products to the consumers, raising prices to the level, until the alternative way of transportation is not found. On the other hand, if even two or three refineries are taken out of order, this might skyrocket the prices for petroleum in a matter of days, effecting all economical spheres – the result, that cannot be overcome in short period of time. Loosing refineries would mean either importing finished products from overseas, which is not possible, as the US is already importing 87% of its daily need in crude oil from overseas; or basically redistributing the demand for refining amongst the functioning plants, the option, that might save the situation for some time, until their refinement capacity will be coping with the constantly increasing demand for finished products.
References
Protective Security Division., Department of Homeland Security. (September 22, 2003). Characteristics and common vulnerabilities infrastructure category: petroleum refineries. Draft – Sensitive homeland security information., law enforcement sensitive. https://publicintelligence.net/ules-dhs-petroleum-refinery-characteristics-and-common-vulnerabilities-report/. Web. Accessed June 2, 2013
Horsley, S. (May 2, 2006). The Future of Fuel, Experts Ponder Peak of Global Oil Production. http://www.npr.org/templates/story/story.php?storyId=5374852. Web. Accessed June 2, 2013
