Last month we devoted the entire blog to the Port of Corpus Christi and its emergence as a key outlet for US crude exports. Why? Some big new pipelines — including Cactus 2 and Epic — started service to that port.
A summary of subjects that monthly blog will cover:
- US record exports: a record high of 3.4 million bopd in October; that number will continue to climb
- the latest major pipeline from the Permian to Corpus Christi: Phillip 66's 900,000 bopd Gray Oak pipeline did not start service until late November
- Gray Oak will also have destinations near Houston when it goes into full service in 1Q20 (next quarter)
- Epic has loaded an Aframax-sized vessel with crude at its converted dock on the Inner Harbor of the Corpus Christi Ship Channel
- Epic repurposed the former grain facility to export crude oil while a larger export terminal is under construction; will be in service 3Q20
- first sign of consolidation? Enbridge is joining Enterprise's project to develope a VLCC terminal off Freeport, TX; SPOT;
- Enbridge is also part of a competing project with Oiltanking with another memorable name: Texas COLT -- short for Texas Crude Offshore Loading Terminal
- Export surprises
- not only did US set many records for US crude exports in October, but monthly shipments also hit records to six individual countries:
- France: exports from US to France nearly tripled from September, 215,000 bopd; France is now the sixth top importer of US crude as refiners like XOM, UK-Chinese joint venture Petrolneo doubled down on WTI and Bakken liftings to the Fos-Lavera port complex
- Australia: becomes the seventh top US destination for crude; BP's 146,000 bopd Kwinana refinery, just started purchasing US crude earlier this year
- Peru: 85,000 bopd; for the first time, imported oil from the US; indicating that Peru is displacing pricier west African crude with more regional grades, such as WTI or Light Louisiana Sweet (LLS)
- and get this, small European (sic) nations like Denmark, Israel, and Belgium opted for US crude instead of North Sea options and more economic price levels at the US Gulf coast
Big oil: looks ready to have its day in US shale. Financial Times. Paywall. Nothing new. Oil companies with deep pockets and/or access to capital will do well in 2020. Otherwise, look out below.
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Making America Great
From twitter yesterday (tag, wages, EVs):
Bruin looks to be pretty impressive. Not only their FB Wells, but then the recent wells in Tyrone field... and now the new Wells in Ellisville field. Not looking like "fringe" fields to me.
ReplyDeleteSorry for the delay in replying. I was traveling last week/over the weekend. You are exactly correct on two accounts.
DeleteFirst, these fields might have been Tier 2 or Tier 3 fields in the early days of the boom but are not Tier 1.
Second, Bruin seems to be an incredible operator. That's why I named them the "most exciting small operator" in the Bakken in 2019:
https://themilliondollarway.blogspot.com/2019/12/top-stories-for-2019-in-progress.html.