• 4 minutes Ten Years of Plunging Solar Prices
  • 7 minutes Hydrogen Capable Natural Gas Turbines
  • 10 minutes World looks on in horror as Trump flails over pandemic despite claims US leads way
  • 13 minutes Large gas belt discovered in China
  • 2 hours Can I Sue This Site for If People Post Inaccurate Information?
  • 5 hours Yale University Epidemiologist Publishes Paper on Major Benefits of Hydroxchloroquine for High-risk Outpatients. Quacksalvers like Fauci should put lives ahead of Politics
  • 2 hours Would bashing China solve all the problems of the United States
  • 4 hours COVID 19 May Be Less Deadly Than Flu Study Finds
  • 10 hours Model 3 cheaper to buy than BMW 3 series.
  • 17 hours China to Impose Dictatorship on Hong Kong
  • 14 hours Incompetent "Journalists"
  • 51 mins Pompeo's Hong Kong
  • 8 hours Thugs in Trumpistan
  • 1 day Iran's first oil tanker has arrived near Venezuela
  • 2 mins China To Boost Oil & Gas Exploration, As EU Prepares To Commit Suicide
  • 1 day Let’s Try This....
  • 1 day Chicago Threatens To Condemn - Possibly Demolish - Churches Defying Lockdown
  • 2 days HVDC Cheaper Than Low-carbon Natural Gas
  • 1 day 60 mph electric mopeds
Iranian Oil Reaches Crisis-Stricken Venezuela

Iranian Oil Reaches Crisis-Stricken Venezuela

The fourth tanker of Iran's…

Driving Season Won’t Save Gas Demand

Driving Season Won’t Save Gas Demand

Memorial day weekend usually marks…

Plains All American Scraps Plans Let Customers Pay For Steel Tariffs

Plains All American will not be passing on its steel tariff fees to its Cactus II customers after all, after threatening to pass on the cost it will incur to the shippers that use the oil pipeline, according to S&P Global Platts.

The pipeline, which can move 670,000 barrels of oil per day out of the prolific Permian Basin, will now eat the cost of the steel tariff contrary to its earlier plans, after shippers railed against the notion of the planned 5-cent per barrel surcharge that was set to go into effect as of April 1 next year.

Plains All American estimated last year that the 25% tariff on steel would add $40 million to the project, according to Pipeline & Gas Journal.

ConocoPhillips and Encana Marketing had both lodged protests with the Federal Energy Regulatory Commission last week on the grounds that Plains could still receive a waiver for the fee, before it even goes into effect.

Plains abandoned its plan before the FERC could rule.

The Cactus II is looked up with great anticipation for the country who has made the oil industry a focal point over the last year. Pipeline capacity constraints have plagued the Permian, and have caused a deeper rift between Midland crude and West Texas Intermediate—similar to the situation that Canada has found itself in.

Crude oil output in the Permian basin has increased by leaps and bounds over the last couple of years, but pipeline projects take much longer to complete, creating an imbalance between crude oil production and pipeline capacity.

The move by Plains to abandon its attempt to recoup the costs of the steel tariffs may mean that the next two oil pipelines that are on track to move oil out of the Permian will find increased resistance if more shippers are emboldened by today’s outcome.

By Julianne Geiger 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