Pages

▼

Sunday, March 4, 2012

Decade For Energy? Kinder Morgan Announces Huge New CBR Terminal In Pecos, TX

I remain concerned that this will be another lost decade. With gasoline at $5.00/gallon in some places, and flirting with $4.00 everywhere, the president praises the Volt (whose production is temporarily suspended due to underwhelming demand) and promotes algae-oil (I feel the term "pond scum" too inflammatory to use). I feel I have reasons to worry. Especially when he promotes algae-oil at the same time he kills the Keystone XL 1.0 and 2.0.

But market forces and technology are such that there may be hope. "Anon 1" just sent me a great story: Kinder Morgan announces plans to build a mega-railroad-crude-oil-terminal in Pecos, Texas, to gather, process, and transport the liquids coming out of the Permian Basin.
The first stage of the terminal is expected to be completed and operational by May 2012. Crude oil, natural gas liquids, frac sand, pipe, tube, structural steel, rig mats and other commodities can be railed in and out, and transloaded to truck for delivery to the surrounding area. Once the terminal has been fully developed, it will encompass approximately 85 acres and will be able to support unit trains. Total railcar capacity is anticipated to be 300 to 600 per day based on demand. The terminal is strategically located along the Pecos Valley Southern Railway (PVS) and directly adjacent to the Union Pacific mainline in the city of Pecos, and will offer scalability and convenience for local area producers.

“KMP is excited for the opportunity to join with Martin Midstream and Watco to develop this opportunity in the Permian Basin.  
This is Watco's eighth crude-by-rail terminal.

Along with crude oil, natural gas liquids, frac sand, pipe, tube, structural steel, rig mats and other commodities, KMI will probably ship kitchen sinks for Sears.

So, there is hope.

Pecos, Texas, is about 100 miles southwest of Midland, Texas.
at

2 comments:

  1. donMarch 4, 2012 at 4:17 PM

    Consider the LACK of oil infastructure placed in this country in the last 25 years..the only real pipeline i know built was the Trans canada pipeline thru the eastern Dakota;s and down thru nebraska about 3 years ago.. permits were issued under the previous administration. Now with all of this NEW oil production coming on line, and with the prices as divergent from a normal wti, cushing price, the only way to Move forward in a reasonable amount of time is thru CBR. it appears that the permit process in ND was only several months in duartion. maybe the best investment maybe the makers of rail tank cars..

    ReplyDelete
    Replies
    1. Bruce OksolMarch 4, 2012 at 4:22 PM

      Yes, I find it ironic that folks are learning that crude-by-rail, though more expensive, and less efficient, does have the beauty of flexibility. And though there can be derailments, it seems that a pipeline spill results in a pipeline being shut down longer than necessary since the govt gets involved and certify that the pipeline is safe to be used again.

      I don't think anyone would have guessed five years ago that we would be seeing all those black rail tank cars.

      Delete

Note: Only a member of this blog may post a comment.