Storage Buffer

Changes, expansions and reversals of the existing logistics system that supplies crude to 2.5 MMb/d plus of refining capacity in Houston have allowed refiners to expand output and process more crude than ever before. But there is still another 1.5 MMb/d of pipeline capacity coming into Houston by the end of 2015 and the decline in waterborne imports has reduced system flexibility. One company’s plans to build out over 17 MMBbl of crude storage in salt dome caverns south of Houston could alleviate some of the storage capacity challenges. Today we discuss the proposal.