With pipelines full, producers turning to rail, trucks
September 11th, 2018
August 31, 2018 - San Antonio Express-News / Progressive Railroading -
Related: Union Pacific to provide crude-by-rail service in Pecos, Texas
Oil producers in the Permian Basin, dealing with a shortage of pipelines, are increasingly turning to trucks and rail to ship the flood of crude from the West Texas oil field to refineries and export terminals on the Gulf Coast.
These transportation shifts are driven by two simple math problems. First, crude oil production in the Permian has reached 3.6 million barrels a day, while pipeline capacity out of the region is just 3.5 million barrels a day, according to the energy research firm Wood Mackenzie. Next, crude is selling for as much as $10 more a barrel in South Texas, the Gulf Coast and other markets outside of West Texas, where inventories are building in part because of the lack of pipeline capacity.
Read more: https://www.expressnews.com/business/eagle-ford-energy/article/With-pipelines-full-oil-and-gas-companies-13197637.php
Vista Proppants and Logistics LLC has entered into a definitive agreement with JupiterMLP LLC for transloading crude oil from truck to rail at its facility in Pecos, Texas.
Vista and Jupiter plan to ship crude oil via Union Pacific Railroad through 2019 and potentially into 2020, depending on pipeline construction timelines and capacity availability, the companies announced earlier this week in a press release.
Crude oil will be extracted from the Permian Basin. Commercial operations at Pecos began Aug. 15.
"The strategic location and capabilities of our Pecos facility make it a natural fit for crude-by-rail operations, and we look forward to assisting our customers with their transport needs as takeaway infrastructure for the Permian is further built out over the next couple of years," said Vista Chief Executive Officer Gary Humphreys.
Read more: https://www.progressiverailroading.com/union_pacific/news/UP-to-provide-crude-by-rail-service-for-Vista-terminal-in-Texas--55499
Related: Union Pacific to provide crude-by-rail service in Pecos, Texas
Oil producers in the Permian Basin, dealing with a shortage of pipelines, are increasingly turning to trucks and rail to ship the flood of crude from the West Texas oil field to refineries and export terminals on the Gulf Coast.
These transportation shifts are driven by two simple math problems. First, crude oil production in the Permian has reached 3.6 million barrels a day, while pipeline capacity out of the region is just 3.5 million barrels a day, according to the energy research firm Wood Mackenzie. Next, crude is selling for as much as $10 more a barrel in South Texas, the Gulf Coast and other markets outside of West Texas, where inventories are building in part because of the lack of pipeline capacity.
Read more: https://www.expressnews.com/business/eagle-ford-energy/article/With-pipelines-full-oil-and-gas-companies-13197637.php
Vista Proppants and Logistics LLC has entered into a definitive agreement with JupiterMLP LLC for transloading crude oil from truck to rail at its facility in Pecos, Texas.
Vista and Jupiter plan to ship crude oil via Union Pacific Railroad through 2019 and potentially into 2020, depending on pipeline construction timelines and capacity availability, the companies announced earlier this week in a press release.
Crude oil will be extracted from the Permian Basin. Commercial operations at Pecos began Aug. 15.
"The strategic location and capabilities of our Pecos facility make it a natural fit for crude-by-rail operations, and we look forward to assisting our customers with their transport needs as takeaway infrastructure for the Permian is further built out over the next couple of years," said Vista Chief Executive Officer Gary Humphreys.
Read more: https://www.progressiverailroading.com/union_pacific/news/UP-to-provide-crude-by-rail-service-for-Vista-terminal-in-Texas--55499