(Reuters 5/19/2012) - The Seaway pipeline began pumping crude from Cushing, Oklahoma, oil tanks to the heart of the U.S. refining industry in Houston on Saturday, marking a historic shift in the way oil flows across the United States.The first barrels went into the line about noon CDT (1700 GMT) Saturday and volumes were expected to increase within days to 150,000 barrels per day (bpd), spokesman Rick Rainey of operating partner Enterprise Products said by email. Enbridge Inc is a 50 percent partner in the project.
Analysts had mixed opinions whether the first crude down Seaway would be light sweet or heavy sour or a mix. The type of oil makes a difference to refiners as well as pipeliners. Much of the stored oil at Cushing is now Canadian heavy sour. Enterprise did not disclose the initial mix of oil grades. Light oil is easier to handle at pipeline startup than heavy, making light the likely choice, said Abudi Zein of Genscape, an industry data monitor. "The biggest bang for the buck would be to displace foreign light sweet with much cheaper domestic light sweet," said Rusty Braziel of RBN Energy consultants in Houston. Mark Routt of KBC Advanced Technologies in Houston had a different opinion. Heavy crude costs more to pipeline than light crude but Gulf Coast refiners are geared for cheaper heavy, he said. "My guess is that slightly more heavy than light will be flowing," Routt said.
By Bruce Nichols
