The midstream sector in Texas is still in the midst of what seems to be a never-ending build-out of new pipelines, storage terminals and export docks, all aimed at keeping pace with rising production and refining volumes and the increasing need to move incremental output to foreign markets. Given the understandable desire of midstream companies to earn revenue and profits multiple times as hydrocarbons move from the lease to end-users, it’s not surprising to find midstreamers at work on a variety of projects along the way. A prime example would be NuStar Energy, whose capital spending plan for 2019-20 is focused on helping to resolve three bottlenecks: between its crude oil gathering system and takeaway pipelines in the Permian, between takeaway pipes and export docks in the Corpus Christi area, and between South Texas refineries and refined products customers in Mexico. Today, we look at a leading midstreamer’s multifaceted expansion effort in the Lone Star State.
It’s fair to say that the Shale Revolution changed everything, and that its application to the Permian took it all up a few notches. For the past four years in particular, the expectation — and then, the reality — of phenomenal production growth in West Texas and southeastern New Mexico has spurred the development of many new gathering systems for crude oil and natural gas, as well as new gas processing plants, takeaway pipeline capacity, fractionation plants, refinery capacity, export docks and liquefaction trains — new refined-product pipeline capacity too. And don’t forget new storage tanks and new steam crackers. Amazingly, after all that’s been accomplished on the midstream front since the start of 2016, there’s still a lot more to do, as evidenced by NuStar Energy’s capital expenditure plan for 2019-20. We should note that, in a new asset-by-asset analysis of midstream companies, our friends at East Daley Capital forecasted that NuStar’s 2020 adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) will exceed the consensus view by more than 6% — a larger positive variance than all but one of the 24 midstreamers studied.
RBN’s US Gulf Coast Crude Oil Infrastructure Map - is up-to-date and provides a clear and comprehensive view into North America’s most dynamic and important crude oil market landscape.
Substantial portions of NuStar’s capex are being spent on projects that will help move more Permian crude from wells in the Permian’s Midland Basin to takeaway pipelines, and from those same takeaway pipes to export terminals in Corpus Christi and nearby Ingleside, TX, including NuStar’s own North Beach terminal along the Corpus Christi Ship Channel. Additional funds are earmarked for expanding North Beach’s storage capacity, and for increasing the company’s ability to transport gasoline and diesel from South Texas to northern Mexico. We’ll discuss these efforts one by one.
Join Backstage Pass to Read Full Article
About the song
“Gimme Three Steps” was written by Ronnie Van Zant and Allen Collins and appears as the third cut on side one of Lynyrd Skynyrd’s debut album, Pronounced Leh-nerd Skin-nerd. The song was written about an incident that happened to singer Ronnie Van Zant at a bar in Jacksonville, FL, called The Pastime. Ironically, “Gimme Three Steps” failed to chart when it was released as a single in November 1973; it has since become one of the band's most popular songs. On a side note, mega-selling Los Angeles band Poison played this song regularly as a part of their set in LA clubs before being signed to their first record deal. Personnel on the record were: Ronnie Van Zant (vocals), Gary Rossington (lead guitar), Allen Collins (guitar), Ed King (bass), Billy Powell (keyboards), and Bob Burns (drums).
Pronounced Leh-nerd Skin-nerd was recorded between March and May of 1973 at Studio One in Doraville, GA, with Al Kooper producing. Most of the songs on the album had been played and tested live for some time and were rehearsed to perfection at the band’s rehearsal space: Hell House, a non-air-conditioned cabin with a tin roof outside of Jacksonville, FL. They liked the spot because they could play loudly at all hours with no neighbors or police within earshot. Hell House has since burned to the ground and the land on which it sat is now a gated residential subdivision with street names that pay homage to Lynyrd Skynyrd song titles. The album was released in August 1973 and went to #27 on the Billboard 200 Albums chart. It has been certified 2X Platinum by the Recording Industry Association of America. Two singles were released from the LP.
Lynyrd Skynyrd is an American rock band formed in Jacksonville. The band’s roots go back to 1964, performing under a variety of names, with different personnel, before deciding on the moniker Lynyrd Skynyrd in 1969. The name came from Leonard Skinner, a high school gym coach in Jacksonville who hated rock and roll and long-haired guys who played it. They have released 14 studio albums, 14 live albums, 23 compilation albums and 30 singles. The band was inducted into the Rock and Roll Hall of Fame in 2005. More than two dozen band members have passed through their ranks since their formation. The last original member, Gary Rossington, passed away in March 2023 at the age of 71. Rossington hand-picked Damon Johnson (Brother Cane, Black Star Riders) to be his replacement. Cane, along with Johnny Van Zant, Rickey Medlocke, Michael Cartellone, Mark Matejka, Peter Keys and Keith Christopher, continue to record and tour as Lynyrd Skynyrd. After touring the U.S. on the mega-successful Sharp Dressed Simple Man Tour with ZZ Top, the band began their Celebrating 50 Years of Lynyrd Skynyrd Tour in December 2023. The tour resumes in March 2025.
