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Released May 13, 2014 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--The 450,000-barrel-per-day (BBL/d) Seaway II pipeline, owned and operated by Enterprise Products Partners LP (NYSE:EPD) (Houston) and Enbridge Incorporated (NYSE:ENB) (Calgary, Alberta), was expected to be brought online in February 2014, but it has been pushed back to this summer. TransCanada Corporation's (NYSE:TRP) (Calgary) 500,000-BBL/d Keystone XL (KXL) pipeline, which also would bring oil into Cushing, Oklahoma, has been even further delayed. Cushing's bottleneck may be relieved for far longer than previously expected, as takeaway capacity outstrips incoming capacity for the next several months.
According to Industrial Info's data, KXL is not expected to be completed before the third quarter of 2015, delaying a large portion of the crude capacity planned to sent to Cushing. Presidential permits for the international construction of KXL have not been issued.
In its February 1, 2013, article on the oil bottleneck at Cushing, Timeline: Relief at Cushing's Pipeline Bottleneck Could Prove Temporary, Industrial Info predicted that the relief would only last until the third quarter of 2014.
One of the other large incoming crude capacity pipelines is the 600,000-BBL/d Flanagan South pipeline by Enbridge. This project, set to be brought online in September, neatly displaces the takeaway capacity of Seaway II. However, without the 500,000 BBL/d of crude coming in via KXL, takeaway capacity following the activation of Seaway II will still outstrip incoming capacity by more than 300,000 BBL/d. Even with Kinder Morgan Incorporated (NYSE:KMI) (Houston) setting up its 220,000-BBL/d Pony Express project for completion in the fourth quarter this year, takeaway capacity would continue to outstrip incoming capacity late into 2015, when the KXL could begin operations.
Stockpiles at Cushing already are falling. After peaking at 51 million barrels in January 2013, the stockpiles have followed a generally downward trend, experiencing a sharp drop from 50 million barrels last May to a low of 32 million barrels in February 2014. While current estimates say that that total storage capacity at Cushing is approaching 70 million barrels--accounting for tanks left unused due to scheduled maintenance--the functional capacity of the "Pipeline Crossroads of the World" is closer to 56 million barrels. As takeaway capacity continues to outstrip incoming oil, it seems that Cushing may slowly empty between now and the planned startup of the KXL pipeline.
View Project Report - 300107925 300047153 300051605
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
According to Industrial Info's data, KXL is not expected to be completed before the third quarter of 2015, delaying a large portion of the crude capacity planned to sent to Cushing. Presidential permits for the international construction of KXL have not been issued.
In its February 1, 2013, article on the oil bottleneck at Cushing, Timeline: Relief at Cushing's Pipeline Bottleneck Could Prove Temporary, Industrial Info predicted that the relief would only last until the third quarter of 2014.
One of the other large incoming crude capacity pipelines is the 600,000-BBL/d Flanagan South pipeline by Enbridge. This project, set to be brought online in September, neatly displaces the takeaway capacity of Seaway II. However, without the 500,000 BBL/d of crude coming in via KXL, takeaway capacity following the activation of Seaway II will still outstrip incoming capacity by more than 300,000 BBL/d. Even with Kinder Morgan Incorporated (NYSE:KMI) (Houston) setting up its 220,000-BBL/d Pony Express project for completion in the fourth quarter this year, takeaway capacity would continue to outstrip incoming capacity late into 2015, when the KXL could begin operations.
Stockpiles at Cushing already are falling. After peaking at 51 million barrels in January 2013, the stockpiles have followed a generally downward trend, experiencing a sharp drop from 50 million barrels last May to a low of 32 million barrels in February 2014. While current estimates say that that total storage capacity at Cushing is approaching 70 million barrels--accounting for tanks left unused due to scheduled maintenance--the functional capacity of the "Pipeline Crossroads of the World" is closer to 56 million barrels. As takeaway capacity continues to outstrip incoming oil, it seems that Cushing may slowly empty between now and the planned startup of the KXL pipeline.
View Project Report - 300107925 300047153 300051605
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
