EIA: More GC pipeline capacity

The rising American crude oil production has created a need for more pipeline capacity to the Gulf Coast region, according to the U.S. Energy Information Administration. EIA recently launched a new liquids pipeline projects database to track 200+ crude oil, hydrocarbon gas liquids (HGL), and petroleum products pipeline projects. "Rising domestic crude oil production has led to several changes in Gulf Coast crude oil supply and demand patterns, creating a need for more pipeline capacity," an EIA report indicated. GC crude oil pipeline capacity additions represent most of the scheduled pipeline capacity growth over the next few years. EIA’s new database provides an improved capability to track the growth. U.S. crude oil production doubled from 2010-18 – about 70 percent coming from the Gulf Coast. As production increased, imports dropped, which meant less of a need for pipeline capacity from the GC to Midwest. New pipelines originating in the Midwest are increasingly moving crude oil south. As a result, the GC transitioned from being a net shipper to a net recipient of crude oil since 2015. In the region, nine intrastate crude oil pipeline projects have been announced or are under construction from 2019–21. These projects are planned to move crude oil throughout Texas and Louisiana to further alleviate regional constraints. (Source: Marine Link 05/31/19)