Illinois plays a critical role in our nation’s energy security. The state leads the Midwest in refining capacity and is home to the Patoka Terminal, one of the busiest crude oil storage hubs in the region. Pipelines that connect into the Patoka Terminal supply crude oil to multiple refineries in Illinois and across the Midwest, as well as refineries along the Gulf Coast.
The Patoka Terminal is a crossroads for pipelines in southern Illinois where crude oil is stored and then delivered to refineries. The Patoka Terminal hosts nearly 80 storage tanks, with a total storage capacity of more than 19 million barrels.
Marion County, home to the Patoka Terminal, has a long history as an important intersection for our nation’s oil industry. Some of the first oil wells in Illinois were drilled nearby in the 1860s, and advances in technology led to a sharp increase in Illinois production in the late 1930s. By 1938, the Salem Oil Field was established in Marion County and became the epicenter of the Illinois oil boom. The Salem Oil Field produced 93 million barrels in its second year in operation.
Over the years, pipelines and storage tanks were built in Marion County, and the Patoka Terminal emerged as an important Midwest hub. Today, activity at the Patoka Terminal brings new jobs and provides tax revenue for the local school districts. It connects twelve pipeline systems to refineries across the Midwest and Gulf Coast, and hosts eight separate companies that own storage and/or pipelines at the Terminal.
The Dakota Access Pipeline, which traverses approximately 177 miles across Illinois, terminates at the Patoka Terminal near the towns of Patoka and Vernon. The additional pipeline capacity out of the Bakken enables producers to increase the amount of domestically produced crude oil that is transported to refining markets around the country.
Illinois’ energy infrastructure helps stimulate the state’s economy and support thousands of family-sustaining jobs. According to a 2019 report on U.S. energy and employment, nearly 114,000 Illinois residents work in traditional energy jobs.
The oil and gas industry in Illinois also generates an economic impact of more than $3 billion each year, according to the Illinois Petroleum Resources Board. That includes $770 million in annual personal and business income for residents, and royalty income for more than 30,000 people. Annual ad valorem (property) taxes paid by the industry also help support schools and municipalities across the state.
