Crude oil flows from the Permian Basin to Nederland, TX, dipped slightly in February for the second consecutive month. According to latest data from our Crude Oil Permian report, February’s Nederland-bound total was 716 Mb/d, which is 3% below January and 15% below 2023 (see below graph). Overall, Nederland total volumes have started to dwindle, and its percentage of total Permian flows to the U.S. Gulf Coast have decreased from 16% in 2023 to 13% in February. With pipelines to Corpus Christi essentially full for a while now, most of the production growth in the Permian Basin has been directed toward Houston.
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Permian Crude Oil Flows to Nederland End Q1 on a Higher Note
Adaptation - With Changes on the Horizon, Nederland/Beaumont Export Hub Increasing Focus On NGLs
The Nederland/Beaumont crude oil hub has been somewhat overshadowed recently by other Gulf Coast crude export hubs despite hosting America’s largest refinery, a handful of export terminals and pipeline links to the prolific Permian Basin. But while plans to build one or more deepwater crude export terminals could mean big changes for the Gulf Coast hubs, the Nederland/Beaumont area isn’t standing still. In today’s RBN blog, we discuss what’s ahead for the region and its emergence as a leader in NGL exports.
Time to Shine - Importance of Colorado City Hub Grows as Crude Oil Flows to Houston Increase
Colorado City, TX, has deep roots in the history of the American West, beginning as a ranger camp in 1877. As cattlemen flocked to the area, it quickly became a vital center for the cattle industry, earning the moniker “The Mother City of West Texas.” The arrival of the Texas & Pacific Railway in 1881 marked a turning point for the town. It was formally organized the following year, its economy bolstered by cattle, cotton and a soon-burgeoning oil industry. A 1920s oil boom further elevated Colorado City’s economic status, marking the beginning of its now long-standing importance in the oil industry. In today’s RBN blog, we’ll explore how Colorado City continues to serve as a critical junction, facilitating the movement of crude from the prolific Permian Basin to major destinations such as Cushing, OK, and the U.S. Gulf Coast.