• 3 minutes Nucelar Deal Is Dead? Iran Distances Itself Further From ND, Alarming Russia And France
  • 5 minutes Don Jr. Tweets name Ukraine Whistleblower, Eric Ciaramella. Worked for CIA during Obama Administration, Hold over to Trump National Security Counsel under Gen McCallister, more . . . .
  • 9 minutes Shale pioneer Chesepeak will file bankruptcy soon. FINALLY ! The consolidation begins
  • 12 minutes China's Blueprint For Global Power
  • 9 hours EU has already lost the Trump vs. EU Trade War
  • 33 mins Science: Only correct if it fits the popular narrative
  • 3 hours Pioneer's Sheffield in Doghouse. Oil upset his bragging about Shale hurt prices. Now on campaign to lower expectations, prop up price.
  • 6 hours ''Err ... but Trump ...?'' *sniff
  • 2 hours China's Renewables Boom Hits the Wall
  • 1 hour What are the odds of 4 U.S. politicians all having children working for Ukraine Gas Companies?
  • 6 mins Crazy Stories From Round The World
  • 17 hours Who writes this stuff? "Crude Prices Swing Between Gains, Losses"
  • 2 hours Forget out-of-date 'dirty oil' smear, Alberta moving to be world's cleanest oil industry
  • 2 hours Tesla Launches Faster Third Generation Supercharger
  • 9 hours Passerby doused with flammable liquid and set on fire by peaceful protesters
  • 1 day Haaretz article series _ Saudi Arabia: A Kingdom in Turmoil | Part 1 - Oil Empire

Breaking News:

Russia Plans To Boost Crude Oil Exports

Cactus Oil Pipeline To Begin Partial Operation Next Week

Permian Basin

Plains All American’s Cactus II pipeline that will carry crude oil from the Permian to Corpus Christi in Texas will begin partial commercial operation next week, the company’s chief executive during its second-quarter financial results, as quoted by Reuters.

Cactus II has a nameplate capacity of 670,000 barrels daily and is one of three pipelines the oil industry in Texas and New Mexico has been eagerly awaiting for a while now. While production from the Permian shale play rises, pipeline capacity has lagged behind, pressuring prices.

The pipeline capacity shortage forced companies active in what many call the star of the shale patch to sell their crude at a painful discount, which has cost them both profits and market cap: Bloomberg calculated that over just two weeks last June, Permian drillers lost a combined US$15.6 billion in market value, or over US$1 billion per day, with some of the shares booking double-digit drops.

Luckily for these producers, there are not a lot environmentalist groups in this part of the United States, so pipeline companies have been quick to step in and plan additional capacity.

Plains All American announced its plans to build Cactus II in February 2018, saying it will have an initial capacity of 585,000 bpd. The company also said at the time, the pipeline had been fully committed at this amount in long-term contracts.

There’s more: a JV between Phillips 66 and Andeavor could make its Gray Oak pipeline ship up to 1 million bpd of crude if it gets sufficient commitments from producers. The pipeline should be operational by the end of the year.

The EPIC pipeline, capable of shipping 500,000 bpd should also be operational by the end of 2019. Two large Permian players—Apache Corp. and Noble Energy—have already committed future flows taking up 30 percent of the pipeline.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play