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Time to Shine - Importance of Colorado City Hub Grows as Crude Oil Flows to Houston Increase

Colorado City, TX, has deep roots in the history of the American West, beginning as a ranger camp in 1877. As cattlemen flocked to the area, it quickly became a vital center for the cattle industry, earning the moniker “The Mother City of West Texas.” The arrival of the Texas & Pacific Railway in 1881 marked a turning point for the town. It was formally organized the following year, its economy bolstered by cattle, cotton and a soon-burgeoning oil industry. A 1920s oil boom further elevated Colorado City’s economic status, marking the beginning of its now long-standing importance in the oil industry. In today’s RBN blog, we’ll explore how Colorado City continues to serve as a critical junction, facilitating the movement of crude from the prolific Permian Basin to major destinations such as Cushing, OK, and the U.S. Gulf Coast. 

The discovery of oil in the region in the early 20th century solidified Colorado City’s significance. In 1924, the West Texas Refinery Co. was established to process Mitchell County oil, which later became Col-Tex Refining under Standard Oil of California. The refinery, processing up to 12 Mb/d through the mid-20th century, was more than just an industrial facility; it was woven into the fabric of daily life in Colorado City, with its whistle setting the rhythm of the town. Although the refinery ceased operations in 1969, its legacy remains a testament to Colorado City’s role as a major oil hub, with oil and gas continuing to drive the local economy today.

Permian Crude Oil Pipelines

Figure 1. Permian Crude Oil Pipelines. Source: RBN Crude Oil Permian

So how does Colorado City (dashed red circle in Figure 1 above) fit into the broader landscape of Permian oil takeaway capacity? Colorado City, like Wink and Crane (our previous blogs in this series on Permian oil hubs), plays an important role in crude oil egress from the prolific Permian Basin. The Permian’s easternmost crude oil hub has access to several destinations in Texas (Houston, Longview, Nederland, Wichita Falls) and beyond (Cushing and Louisiana). 

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