Cushing, Oklahoma -- Oil Hub

[skyrick]

Despite the high oil prices there is a massive glut of oil in Cushing, Oklahoma, the designated delivery point for Nymex crude oil futures, with CNBC's Scott Cohn, and Brian Johnson, Enbridge Energy, Cushing Region Dir. & GM - Airtime: 28 February 2011


...photos taken in Cushing today:

Flickriver - Cushing, Oklahoma


I spoke with a Deeprock Energy (Tulsa-based) employee and he was very excited about the new joint venture between Deeprock and Kinder Morgan. Deeprock has four tanks that hold 250,000 barrels each and are building three more of the same size.

Kinder Morgan Announces Crude Oil Storage Acquisition and Joint Venture

I used to skydive in Cushing from 1979-84. While under canopy at 2000' those tank farms were great landmarks for finding the drop zone.

[cameron_405]

I used to skydive in Cushing from 1979-84. While under canopy at 2000' those tank farms were great landmarks for finding the drop zone.

...what a rush! Did you happen to take any photos on your dives?

[jn1780]

I here ConocoPhillips is not interested in reversing the Seaway pipeline. So we have oil flowing into Cushing from the gulf, but we need the excess oil to flow towards the gulf where all the refineries are. That's what I read in an article explaining why there is such a big difference between the WTI and Brent.

[cameron_405]

...12½ minute video:


Keystone Pipeline Project

The U.S. $12 billion Keystone pipeline system will play an important role in linking a secure and growing supply of Canadian crude oil with the largest refining markets in the United States, significantly improving North American security supply.

On June 30, 2010, TransCanada commenced commercial operation of the first phase of the Keystone Pipeline System. Keystone's first phase was highlighted by the conversion of natural gas pipeline to crude oil pipeline and construction of an innovative bullet line that brings the crude oil non-stop from Canada to market hubs in the U.S. Midwest.

Keystone Cushing (Phase II) is an extension of the Keystone Pipeline from Steele City, Nebraska to Cushing, Oklahoma. The 36-inch pipeline is currently under construction and will connect to storage and distribution facilities at Cushing, a major crude oil marketing/refining and pipeline hub.

The proposed Keystone Gulf Coast Expansion Project is an approximate 2,673-kilometre (1,661-mile), 36-inch crude oil pipeline that would begin at Hardisty, Alberta and extend southeast through Saskatchewan, Montana, South Dakota and Nebraska. It would incorporate a portion of the Keystone Pipeline (Phase II) through Nebraska and Kansas to serve markets at Cushing, Oklahoma before continuing through Oklahoma to a delivery point near existing terminals in Nederland, Texas to serve the Port Arthur, Texas marketplace.

[cameron_405]

I here ConocoPhillips is not interested in reversing the Seaway pipeline. So we have oil flowing into Cushing from the gulf, but we need the excess oil to flow towards the gulf where all the refineries are. That's what I read in an article explaining why there is such a big difference between the WTI and Brent.

Streetwise Professor - Commodities, Derivatives, Economics, Energy

...the spread between Gulf Coast oil prices (such as Louisiana Light Sweet) and West Texas Intermediate (at Cushing, OK) remains wide. The March LLS-WTI spread is $14.42/bbl, and is above $10/bbl through October, 2011. The key to restoring spreads to more typical levels is breaking the logistical bottleneck south of Cushing, thereby permitting Canadian oil that is weighing on prices in the Midcontinent to flow to the Gulf. The extension of the Keystone pipeline will help do that, but not for a couple of years. Another way to ease the logjam is to reverse the Seaway Pipeline, now flowing from the Gulf to Cushing, to carry crude in the opposite direction...

[skyrick]

...what a rush! Did you happen to take any photos on your dives?

AMH by skyrick54, on Flickr

This is me circa 1979, judging by the peace symbol helmet and porno moustache, over Cushing. The tank farms are out of frame to the left.



This is someone landing a reserve by the tank farm after a malfunction.

[cameron_405]

This is me circa 1979, judging by the peace symbol helmet and porno moustache, over Cushing...

"...bow chicka wow wow!"

Thanks for sharing, Rick!