Crude Oil Pipeline Congestion in Texas
Crude oil pipelines from Texas oil fields to a key export hub are almost full, threatening to limit US oil exports despite record production levels. Demand for pipeline space is increasing at a time when international buyers heavily rely on US oil due to global supply constraints. Expansion plans may offer some relief, but congestion remains a concern.
Key Points
- Crude oil pipelines from Texas to the Port of Corpus Christi are almost at full capacity.
- Increased demand for pipeline space coincides with record US oil production.
- Congestion may lead to limitations on US oil exports, impacting global supply dynamics.
- Expansion projects and rerouting options could alleviate some congestion issues.
- Global factors such as the Russia-Ukraine conflict and OPEC+ supply curbs affect the supply-demand balance.