• 4 mintues Texas forced to have rolling brown outs. Not from downed power line , but because the wind energy turbines are frozen.
  • 7 minutes Forecasts for oil stocks.
  • 9 minutes Biden's $2 trillion Plan for Insfrastructure and Jobs
  • 13 minutes European gas market to 2040 according to Platts Analitics
  • 29 mins Simple question: What is the expected impact in electricity Demand when EV deployment exceeds 10%
  • 7 hours America's pandemic dead deserve accountability after Birx disclosure
  • 2 days Putin blocks Ukraine access to Black Sea after Joe blinks
  • 1 hour U.S. Presidential Elections Status - Electoral Votes
  • 3 days Today Biden calls for Summit with Putin. Will Joe apologize to Putin for calling him a "Killer" ?
  • 1 day Fukushima
  • 2 days So. Who's for Universal Basic Income?
  • 3 days Biden about to face first real test. Russia building up military on Ukraine border.
Yergin: Oil Prices Could Go As High As $75 In 2022

Yergin: Oil Prices Could Go As High As $75 In 2022

IHS oil expert Daniel Yergin…

Why Gasoline Prices Often Rise In Spring

Why Gasoline Prices Often Rise In Spring

Gasoline prices set to rise…

Energy Transfer Partners Plans 600,000-Bpd Permian Oil Pipeline

Energy Transfer Partners plans to build a 600,000-bpd oil pipeline from the Permian to the Houston Ship Channel and Nederland, Texas, as midstream operators race to add takeaway capacity in the fastest-growing U.S. shale play.

The planned ETP pipeline could be “easily expandable” to 1 million bpd, company executives said on the conference call for the Q1 results on Thursday, adding that the new pipeline would likely come into service in 2020.

Booming Permian oil production has started to constrain takeaway capacity from the region, putting downward pressure on Midland crude oil prices compared to the prices in Houston.

“The almost historical widening of that basis will certainly help our margins in the coming quarters,” Reuters quoted senior ETP executive Marshall McCrea as saying.

Crude oil volumes on ETP’s Permian Express 3 averaged “a couple of hundred thousand” barrels of oil per day in Q1, and the company continues to assess possible further expansion of that pipeline, ETP said on the conference call.

Other operators are also announcing plans or commit to projects to move the growing Permian oil production out of West Texas to the ports.

Enterprise Products Partners announced plans in December to convert one of its natural gas liquids (NGL) pipelines from the Permian to the Texas Gulf Coast to crude oil service. The conversion, expected to be completed in the first half of 2020, would provide the partnership with total crude oil pipeline capacity of over 650,000 bpd from the Permian to Enterprise’s crude oil hub in the Houston area.

Related: Goldman: Oil Prices To Hit $82.50 By The Summer

Magellan Midstream Partners and Plains All American Pipeline plan to further expand the BridgeTex pipeline to a capacity of 440,000 bpd to deliver Permian oil from Midland and Colorado City, Texas, to the Houston Gulf Coast area.

Plains All American said in February that the planned Cactus II pipeline capacity is fully committed with long-term third-party shipper contracts totaling 525,000 bpd. The pipeline is targeted to be operational in the third quarter of 2019.

Phillips 66 Partners has received sufficient binding commitments on an initial open season to proceed with construction of the Gray Oak Pipeline system that could transport up to 700,000 bpd from West Texas to destinations in the Corpus Christi and Sweeny/Freeport markets.

Analysts expect the Permian oil production to exceed takeaway capacity by the middle of this year.

“Exactly when that congestion occurs is obviously the big question, but our expectation is that demand will surpass capacity around the second quarter of this year,” Sandy Fielden, director of Oil and Products Research for Morningstar Commodities Research, told Pipeline & Gas Journal in March.

By Tsvetana Paraskova 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