Crude Oil Glut at cushing May worsen as new production outstrips new outbound pipeline capacity
Wednesday, Apr 18, 2012Written by John Egan for Industrial Info Resources (Sugar Land, Texas)--The crude oil imbalance at the Cushing, Oklahoma, hub is likely to get worse before it gets better, and ultimate relief is several years away, speakers told a Rocky Mountain oil and gas conference in Denver last week.
The Cushing hub currently receives about 1.6 million barrels per day (BBL/d) of oil, but outbound pipeline capacity is limited to about 1.3 million BBL/d, according to Paul Miller, senior vice president of oil pipelines at TransCanada PipeLines Limited, a unit of TransCanada Corporation (NYSE:TRP) (Calgary, Alberta). The imbalance at the hub creates a situation that is "bad and getting worse," he added, because new production is coming online faster than pipelines and infrastructure are being completed.
Other companies featured: Kinder Morgan Energy Partners LP (NYSE:KMP), Enbridge Incorporated (NYSE:ENB), Enterprise Products Partners LP (NYSE:EPD), ONEOK Partners LP (NYSE:OKS)
Source: Crude Oil
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