Texas Crude Oil Pipelines Near Full Capacity, Potential Export Constraints Near
Pipelines transporting crude from America’s top-producing shale basin to major export hubs in Texas are nearing capacity limits. With US crude production hitting record highs, these pipeline constraints could throttle US oil exports at a time when uncertainty looms in the energy and geopolitical spaces.
Bloomberg cites new data from energy researcher East Daley Analytics, which says major pipelines between the Permian Basin and the Port of Corpus Christi pipeline are currently more than 90% full. That number could easily rise to 94% or 95% by the second half of 2025.
Bloomberg pointed out, “While output is set to keep growing, it will be difficult for that incremental output to reach international buyers without ample pipeline space.”
Some of this crude will likely be redirected to the Houston area to ease congestion. Specifically, OneOK’s Longhorn and BridgeTex pipelines could serve as alternative routes for transporting crude to the Gulf Coast.
Meanwhile, Enbridge’s Gray Oak pipeline expansion could help alleviate some of the bottlenecks in the Corpus Christi route.
“Still, East Daley estimates even the company’s goal of increasing capacity on the line by 120,000 barrels per day won’t bring overall regional utilization below 90%,” Bloomberg said.
With the US leading the world in crude oil production…
Export limitations on US energy products will spell disaster for the EU and other major trading partners that heavily rely on the US more than ever.
Tyler Durden
Tue, 07/30/2024 – 19:20