The crude oil storage and distribution hub in the small town of Cushing, OK, is a marvel. With more than 90 MMbbl of tankage, 3.7 MMb/d of incoming pipeline capacity and 3.1 MMb/d of outbound pipes, Cushing’s nickname — “Pipeline Crossroads of the World” — is spot-on, not hyperbole. However, like a lot of other U.S. energy infrastructure in the Shale Era, Cushing’s role has been in flux. Permian oil production has been surging, the ban on U.S. oil exports is a fading memory, and the Gulf Coast — not Cushing — is where most U.S. crude production wants to go, for its concentration of refineries and export docks. That is not to say that Cushing is no longer important. Far from it. Today, we begin a blog series on how Cushing’s role has been morphing and why the Sooner State trading hub still provides critical support to producers, midstream companies and refineries alike.
Source: RBN
If we were to make a list of the Seven Wonders of the Energy World, the crude hub at Cushing, OK (population, about 7,900) would be at the top of the list. Cushing area storage facilities cover almost 5,000 acres and include about 350 huge, aboveground storage tanks, some of which are as much as 300 feet in diameter, 48 feet tall and capable of holding up to 600 Mbbl. A few tanks can receive oil at rates of more than 40 Mbbl per hour. There are a total of 14 major storage operators in the Cushing area, with three companies — Plains All American, Enbridge and Magellan Midstream Partners — owning about 60% of the total storage capacity there. Cushing has had a major role in the “erl bidness” (translation: oil business) for more than 100 years. It began as an oil field, morphed into a refinery center, then grew as a pipeline hub due to its central location between the Gulf Coast, the Midcontinent and Midwest. For decades, it was the domain of integrated oil majors, which used Cushing as a way station between their producing basins and their refineries. In the 1990s, as integrated companies divested of midstream assets, the ownership and control of Cushing transitioned to midstream companies, where it is held today. It is the delivery point for the CME/NYMEX crude oil futures contract, the most actively traded crude futures contract in the world, and the Cushing oil price serves as the underlying benchmark used to value most crude produced in the U.S. Cushing is a diverse, flexible and liquid physical market, which over the decades has survived numerous shifts in U.S. crude oil flow patterns, surpluses, shortages and other disruptions. If any one location can lay claim to the title, “Center of the U.S. Crude Oil Market,” Cushing is it.
Join Backstage Pass, your gateway to exclusive industry insights, connections, and resources across energy markets. Gain direct access to RBN's extensive archive covering crude oil, NGLs, LNG, natural gas, refined products, renewables, and energy transition.
Join Backstage Pass to Read Full Article
About the song
“Oklahoma Swing” was a 1990 hit single for Oklahoma-born country music stars Vince Gill and Reba McEntire. Written by Gill and Tim DuBois, the song was the second single from Gill’s third album, When I Call Your Name, and reached #13 on the Billboard Hot Country Singles chart. The LP was recorded at Emerald Studios in Nashville in early 1989, with Tony Brown producing. When I Call Your Name went to #2 on the Billboard Country Albums chart, and #67 on the Billboard Top 200 Albums chart after its release in November 1989.
Vince Gill has recorded 20 studio albums, has charted over 40 singles on the U.S. Billboard charts, and has sold over 26 million albums worldwide to date. He still tours as a solo artist, and as a member of The Eagles. Reba McEntire has recorded 31 studio albums, has had 42 #1 singles on the U.S. Billboard charts, and has sold over 95 million records worldwide to date. She still tours as a solo artist.
