Rail terminal to ship oil from the Permian to fill need while pipelines are being built
A crude oil transport company has signed an agreement to start rail shipments out of its West Texas facility.It will give some relief to producers trying to get their oil to market. It will not fill all the excess demand for transport, but it helps.
Vista Proppants and Logistics of Fort Wort signed the deal with JupiterMLP to ship crude oil by train from Vista's Pecos loading facility.
The two companies plan to ship oil by rail through 2019 and possibly into 2020, depending upon the timing of pipeline construction. Vista said it plans to ship 400,000 barrels a month, roughly 13,000 barrels a day, from its Pecos facility.
Pipeline constraints have hampered the booming Permian Basin, and oil executives and other experts have predicted that capacity will run short for some time.