Texas Oil Pipelines Near Max Capacity, Threatening Future Export Limits
(P&GJ) — Crude oil pipelines linking Texas's top oil fields to a key export hub are nearing maximum capacity, which could soon limit U.S. oil exports, according to Yahoo Finance.
Pipelines transporting crude from the Permian Basin to Corpus Christi are already over 90% full, with projections from East Daley Analytics suggesting they could reach up to 95% capacity by late 2025.
RELATED: Texas Needs More Natural Gas Pipelines as Prices Turn Negative Again
As the U.S. ramps up crude oil production, driven by the Permian Basin, getting this oil to global markets will be increasingly difficult without additional pipeline space, according to Yahoo Finance. If exports slow, it could lead to an oversupply in the U.S. and tighter supplies globally, especially as demand rises due to disruptions like Russia's war in Ukraine.
Some oil might be diverted to Houston, easing the pressure on Corpus Christi. Additionally, Enbridge Inc.'s planned expansion of its Gray Oak pipeline could help, but even with an increase of 120,000 barrels per day, overall capacity in the region may remain tight.
Related News
Related News
- Kinder Morgan Proposes 290-Mile Gas Pipeline Expansion Spanning Three States
- Enbridge Plans 86-Mile Pipeline Expansion, Bringing 850 Workers to Northern B.C.
- Intensity, Rainbow Energy to Build 344-Mile Gas Pipeline Across North Dakota
- U.S. Moves to Block Enterprise Products’ Exports to China Over Security Risk
- Court Ruling Allows MVP’s $500 Million Southgate Pipeline Extension to Proceed
- U.S. Pipeline Expansion to Add 99 Bcf/d, Mostly for LNG Export, Report Finds
- A Systematic Approach To Ensuring Pipeline Integrity
- 275-Mile Texas-to-Oklahoma Gas Pipeline Enters Open Season
- LNG Canada Start-Up Fails to Lift Gas Prices Amid Supply Glut
- Kinder Morgan Gas Volumes Climb as Power, LNG Demand Boost Pipeline Business
Comments