There has been a glut of crude oil pipeline takeaway capacity out of the Permian for more than four years since new pipelines were built to Corpus Christi and the Houston market. Even with production out of the Permian increasing by 1.4 MMb/d since mid-2019 when the overbuild kicked in, and pipeline capacity to Corpus Christi maxed out, there is still more than 1.5 MMb/d of surplus capacity out of the basin available, especially in the Houston corridor (see graphic below).
Featured Articles
- Blog
Last Man Standing - BridgeTex On Track to Be the Last Permian-to-Houston Pipe to Fill Up
Permian producers have enjoyed an abundance of outbound options since the pandemic, with egress capacity surpassing production. While a significant amount of capacity remains available, not all routes have proven equal in the eyes of the market, with Corpus Christi and Houston the most sought-after destinations for Permian crude. In today’s RBN blog, we’ll explore why ONEOK’s BridgeTex Pipeline is the only conduit serving the Houston market that still has room to take on additional volumes — although it appears to be quickly nearing full capacity.
- Blog
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.
- Blog
Do The Evolution - Longhorn Pipeline’s Flexibility Has Made It a Critical Conduit for Permian Crude
The great Texas philosopher Matthew McConaughey once said, “I don’t want to just revolve. I want to evolve.” Few pieces of crude oil infrastructure embody that spirit of adaptation quite like ONEOK’s Longhorn Pipeline. Starting out as a Houston-bound conduit for Permian crude, Longhorn later reversed its flow and started moving refined products, then — at just the right time, in the early days of the Permian’s Shale Era rebirth — flipped back to eastbound crude service. In today’s RBN blog, we’ll detail the pipeline’s evolution and its critical role in moving Permian oil to the Gulf Coast market.
