As new crude oil pipeline capacity to the Gulf Coast comes online, a growing disconnect is developing between the surplus crude volumes available for export and the actual export capacity at coastal terminals, particularly projects that would accommodate the more economical and efficient Very Large Crude Carriers (VLCC). This is especially true in the Beaumont-Port Arthur, TX, area, where the relatively shallow depth of the Sabine Neches Waterway limits vessels to Aframax-class ships or partially loaded Suezmax tankers. If planned pipeline expansions into the BPA region over the next two years are completed, over 1 MMb/d of additional crude exports would need to leave BPA terminals to balance the market. Today, we look at current and future export capacity out of BPA.
This blog is based on research from Morningstar Commodities. A copy of the original report is available here.
Gulf Coast crude exports have expanded almost eightfold in the past three-plus years, from just under 300 Mb/d on average in 2016, to an average 2.6 MMb/d between January and October 2019, according to RBN’s Crude Voyager report. We’ve closely followed developments in crude pipeline and export terminal capacities in the RBN blogosphere. In Take It To the Limit earlier this year, we looked at the rising marine activity that has been testing the limits of existing crude export infrastructure at the Gulf Coast ports, and our Slow Ride series broke down the host of issues facing Texas ports — in particular, the Port of Houston — as export volumes rise. And, a couple of months ago, in Break On Through, we discussed the surge in crude exports from the Port of Corpus Christi as two new pipeline systems from the Permian — Cactus II and EPIC — came online.
Canadian crude output is rising, requiring new export routes. As traditional pathways face constraints, the U.S. Rockies—especially the Guernsey, WY hub—are emerging as key corridors for moving Canadian heavy crude to downstream markets, including the Gulf Coast.
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About the song
"Where Will You Go" was written by Babyface, and is the sixth cut on his second album, Tender Lover. Recorded between 1988-89 at Elumba Recording Studios, Galaxy Sound Studios and M'Bila Studios in Hollywood, the album was released in July 1989. The record was produced by L.A. Reid and Babyface. Tender Lover produced two Top-10 singles: "It's No Crime," which went to #7 on the Billboard Hot 100, and "Whip Appeal," which went to #6 on the same chart. Tender Lover went to #1 on the Billboard Top R&B/Hip-Hop albums charts, and #14 on the Billboard Top 200 Albums charts. It has been certified 3x Platinum by the Recording Industry Association of America. Personnel on the record were: Babyface (lead vocals, guitars, keyboards), Kevin Roberson (bass, keyboards, synthesizer), Daryl Simmons (percussion), L.A. Reid (drums, percussion), Donald Park (Fairlight programming, Synclavier programming), After 7 (backing vocals) and Troop (backing vocals).
Babyface (Kenneth Edmunds) is an American singer, songwriter and record producer from Indianapolis, IN. He got the name "Babyface" from Bootsy Collins, while playing in his band. He has made 10 studio albums, one live album, three compilation albums, and 41 singles. He has won 11 Grammy Awards, two American Music Awards, 51 BMI Awards, and has a star on the Hollywood Walk of Fame. Babyface was conferred an honorary doctorate degree from Indiana University Bloomington in 2018. He continues to record and tour, and will be doing a series of shows at the Mirage Casino in Las Vegas in December.
Comments
I believe the Ted Collins pipeline is going to flow from BPA to Houston, not Houston to BPA as the article implies.
In reply to Ted Collins Pipeline by Heather Andrews
Hi - yes - apologies. I did assume Ted Collins was going from Houston to Nederland because the original press release didn't specify. On their investor presentation Energy Transfer make the direction clear - the pipeline is from Nederland to Houston - allowing Bakken crude (for example) to reach the HOFTI terminal in Houston. Thanks for the correction.
Sandy