Exxon's proposed pipeline from the Permian Basin to its Houston area plants is huge

Oil Price:
Exxon, Plains All American, Lotus To Build 1-Million-Bpd Permian Pipeline

Exxon, Plains All American, and Lotus Midstream decided to proceed with plans to build the Wink to Webster pipeline system, with origin points at Wink and Midland to multiple locations near Houston, including Webster and Baytown, and with connectivity to Texas City and Beaumont.
The Wink to Webster Pipeline will be aimed at providing pipeline transportation to ExxonMobil and other Permian producers to market destinations in Texas, as U.S. shale drillers look to have more takeaway capacity from West Texas to the Gulf Coast for the continuously growing production in the most prolific U.S. crude oil basin.
For Exxon, the pipeline project adds to the announcement from earlier this week that the U.S. supermajor reached a final investment decision to build a new crude unit at its Beaumont, Texas refinery that will increase crude refining capacity by more than 65 percent, or 250,000 barrels per day.
The new refinery capacity will be able to use the light crude from the shale wells without having to mix it with imported heavy crude.  This will lower US dependence on imported oil and make imports from places like Venezuela less relevant.  If other refiners move in the same direction the US could become completely energy independent in most of the country.  The Northeast would still be an exception to that because of its opposition to pipelines which has left it importing Russian LNG because it can't access abundant US natural gas.


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