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Oklahoma pipelines news

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Hydrocarbon Engineering,

A news digest for the state of Oklahoma, USA.

Gulf Coast pipeline construction brings billions to the economy

The Gulf Coast Pipeline, which carries crude oil from Cushing to refineries in the Houston area, injected more than US$ 2 billion into Oklahoma’s economy during the 17 months it was under construction, according to a report released this week by the Consumer Energy Alliance.

The pipeline also added US$ 72 million in local tax revenue while bolstering small businesses in eight counties along the construction route.

“Local restaurants, hotels and businesses experienced a significant boost,” the report prepared by the Maguire Energy Institute at Southern Methodist University says. “Business owners in Texas and Oklahoma reported large increases in volume due to the construction of the pipeline.”

The report was commissioned by the Consumer Energy Alliance, a vocal supporter of the proposed Keystone XL pipeline.

Developer TransCanada opted to proceed with the southern leg of the project after being denied a presidential permit by the Obama administration for the northern section.

TransCanada spent US$ 2.3 billion and hired nearly 5000 construction workers on the 485 mile pipeline connecting the crude oil storage hub in Cushing with refineries along the Gulf Coast.

The project created US$ 5.7 billion in economic activity: US$ 3.6 billion in Texas and US$ 2.1 billion in Oklahoma, according to the report.

Report author Bernard Weinstein said the pipeline provided a tremendous “economic tonic” to the 24 counties where it was built. Most are in low-income, rural areas.

Shale wildcatter obtains stake in OK pipeline project

Aubrey McClendon, the US shale wildcatter who has raised US$ 10 billion in capital since parting ways with Chesapeake Energy Corp. last year, has acquired a stake in an Oklahoma pipeline project.

An affiliate of McClendon’s American Energy Partners LP contributed natural gas lines in exchange for a minority interest in Tall Oak Midstream LLC’s planned 250 mile (1600 km) pipeline and processing network.

McClendon’s company also dedicated drilling prospects spread throughout six Oklahoma counties to the new network, according to the statement.

McClendon announced plans on this month to expand his growing shale empire into the pipeline business, with backing from buyout firm The Energy & Minerals Group.

The 250 mile pipeline system will serve natural gas producers in the area targeting the Mississippi Lime, Woodford Shale and Cleveland formations.

The system will include multiple compression sites and a cryogenic processing plant in Payne County, Oklahoma.

Bakken shale pipeline planned

Enterprise Products Partners has announced it will build a 1200 mile pipeline from Stanley to Cushing, Oklahoma.

Cushing is a key gathering point for crude oil, and would help distribute Bakken crude to various parts of the country.

The pipeline would be 30 in. diameter and would have a capacity of 340 000 bpd of oil.

Edited from various sources by Elizabeth Corner

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