ODESSA, TEXAS (Big 2/ Fox 24)- Crude Oil will now be transferred from the Permian Basin to Corpus Christi via a new 30-inch permanent crude oil pipeline that is expected to be in full service on April 1. The CEO of EPIC saying Wednesday in a statement that “EPIC’s ability to provide crude oil transport out to the Permian Basin and into the Corpus Christi market highlights the strategic value of our assets.”
The President and CEO of Latigo Petroleum says “we’re making so much oil in the Permian Basin we have to get it out of here now to other places and another part of that story is they are building a whole lot of storage along that pipeline, roughly 7-million barrels of storage.”
The new pipeline has the capacity of moving 600,000 barrels a day. However, what does this mean for the Permian Basin, and, how will it affect our productivity? Edwards says with more storage means producers in the Permian Basin won’t have to stop production.
“Even when the ships are loading or something gets shut down the producers here in West Texas can still sell their crude and allow EPIC to store it for them. They’ll get it on the tankers as they leave Corpus Christi after that so it’s a very positive report for being a Permian Basin producer.”
As for how it will affect the price per barrel, he says he doesn’t see it moving much.
“It’s better availability to get rid of your Crude. The prices have been very stable for crude in the Permian for the last year or so. That’s not going to affect it much but again, when there wasn’t the capacity to take it out the people producing in the Permian got a lot less for their oil than other people in the United States.”