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Sunoco Announces West Texas Crude Pipeline To Nederland

U.S. Federal Strategic Petroleum Reserve
Photo by Joe Raedle/Newsmakers

There’s a shortage of crude in the Gulf and there’s a glut of it in West Texas.  Sunoco has announced plans for a third West Texas pipeline to get the crude south.

The line is expected to carry 40,000 barrels per day of West Texas Sour to storage fields near Houston.

Thanks to new drilling technology previously unreachable sour crude in West Texas is finally economical to get out of the ground.  But right now there’s little place to store it.  That’s where the pipeline comes in.

The first line is expected to be operational by January 2013.  Target date for completion of the third line has not been announced.  The announcement is mainly targeted at producers who now will bid on the opportunity to utilize the new lines.

For more see this source article.

 

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