Every day, another 4.5 million barrels of Permian crude oil begin the journey from wells in West Texas and southeastern New Mexico to refineries in the U.S. and abroad. For most of that oil, it’s no simple trek. Not only does it wend its way through gathering systems and shuttle pipelines to nearby hubs, it often needs to be directed between terminals within those hubs to reach the specific outbound, long-haul pipe that will take it to where it needs to go. We get it — you probably don’t need to know about every nook and cranny in the multi-terminal hubs at Midland, Crane, Wink, and elsewhere in the Permian, but it sure would help to understand generally how the flow of oil to market works, and why a terminal’s ability to provide destination flexibility is so crucial. Today, we continue our series on Permian hubs and terminals with a real-world example of how a barrel of Delaware Basin crude oil moves to Corpus Christi, Houston, or Cushing.
As we said in Part 1, storage and distribution hubs play critical roles in choreographing the transport of crude oil from the lease to end-users and in enabling traders and others to take advantage of commercial opportunities. This is especially true in the Permian, the U.S.’s leading oil-producing region, where a number of hubs have developed over the past few years to keep pace with production growth and pipeline build-outs. We also questioned the widely held view that the sudden fall-off in Permian production last year and the current expectation for only modest production growth in 2021 and beyond has left the region overbuilt from a midstream infrastructure perspective. In fact, while the Permian generally has sufficient takeaway capacity, there has been recent evidence of tightness in the Permian storage market.
In Part 2, we zoomed in on the hub in Crane, TX, which has a slew of inbound pipelines from the Delaware Basin and a handful from the Midland Basin; 10 terminals with a combined storage capacity of about 7 MMbbl (including about 1 MMbbl now under construction); and direct or indirect connections with just about every takeaway pipeline to the Cushing hub or the Gulf Coast (Corpus Christi, Houston, Beaumont/Nederland, you name it.)
Join Backstage Pass to Read Full Article
About the song
"Wide Open Spaces" was written by Susan Gibson. It appears as the second song on side one of The Dixie Chicks’s (now called The Chicks) fourth studio album of the same name. Released as the third single from the LP in August 1998, the song went to #1 on the Billboard Hot Country Songs chart and #41 on the Billboard Hot 100 Singles chart. The song won the Country Music Association's award for Single of the Year and Music Video of the Year in 1999. Personnel on the record were: Natalie Maines (vocals), Emily Erwin (acoustic guitar, banjo, dobro, vocals), Martie Seidel (fiddle, mandolin, vocals), and various session musicians.
The album Wide Open Spaces was recorded between March and August 1997, with Blake Chancey and Paul Worley producing. Released in January 1998, it went to #1 on the Billboard Top Country Albums chart and #4 on the Billboard Top 200 Albums chart. It won two Grammy Awards in 1999, has been certified 13x Platinum, and given Diamond status by the Recording Industry Association of America. Five singles were released from the LP.
The Chicks (previously known as The Dixie Chicks) are an American country music group formed in Dallas in 1989 by sisters Martie and Emily Erwin. Martie (now Martie Maguire) and Emily (now Emily Strayer) brought Natalie Maines into the band as the lead singer in 1995. In June 2020, the band changed its name to The Chicks. They have released eight studio albums, two live albums, and 25 singles, and have sold more than 33 million records worldwide. Five members have passed through the ranks of The Chicks since their formation. They continue to record and tour.
Comments
It's confusing where you discuss interconnects in terms of diameter and then outlets in terms of bopd. Really need to know the interconnect bopd to understand the hydraulics. Diameter is just a stat.
" The first of these two intra-hub connections is a 24-inch line from the Oryx Terminal to the Phillips 66 Terminal (blue-rectangle labeled “Phillips 66” in Figure 2), which is directly connected to the 900-Mb/d Gray Oak Pipeline to Corpus Christi (blue arrow out of P66 Terminal). The Oryx Terminal’s second intra-hub link is a 16-inch pipeline to the Magellan Terminal (yellow rectangle labeled “Magellan Midstream Partners”), which is directly connected to Magellan Midstream’s 275-Mb/d Longhorn Pipeline to Houston (yellow arrow out of Magellan Terminal)."