EIA: Cushing inventories down 32% over the last 2 months

According to the US Energy Information Administration, crude oil inventories at Cushing, Okla., the primary crude oil storage location in the US, decreased 13 million bbl (-32%) over the last 2 months.

“On Mar. 21, Cushing inventories were less than 29 million bbl, more than 20 million bbl lower than a year ago and the lowest level since early 2012,” EIA said, attributing the dramatic decline of Cushing storage to three factors.

First, the startup of TransCanada’s Cushing Marketlink pipeline, which is now moving crude oil from Cushing to the Gulf Coast. Second, the sustained high crude oil runs at refineries in Petroleum Administration for Defense Districts (PADD) 2 (Midwest) and PADD 3 (Gulf Coast), which are partially supplied from Cushing. And third, expanded pipeline infrastructure and railroad shipments that have made it possible for crude oil to bypass Cushing storage and move directly to refining centers in PADD 1 (East Coast), PADD 3 (Gulf Coast), and PADD 5 (West Coast).

Despite the considerable drawdown, Cushing inventories remain above the top of the 2005-08 range. Over the last several years, crude oil stocks at Cushing rose because of rapidly growing deliveries from tight oil formations in the Midcontinent and insufficient takeaway.

“Currently, Cushing inventories have fallen to levels that reflect current market conditions, and although they are reduced, the levels remain consistent with crude oil supply requirements to meet regional refinery demand,” EIA concluded.

Related Articles

Escalera Resources to form Albania joint venture

04/03/2014 Escalera International Co. LLC, a subsidiary of Escalera Resources Co. (formerly Double Eagle Petroleum Co.), has signed a memorandum of understand...

EIA: Ethanol spot prices rise on rail congestion, cold weather

04/03/2014 Spot prices for ethanol have increased steadily since early February, driven by logistical problems and harsh weather conditions, according to the ...

AMP files FERC request for abandonment of Midla Pipeline

04/03/2014 American Midstream Partners LP (AMP) has filed a request with the US Federal Energy Regulatory Commission to abandon use of its 1920s vintage Midla...

Scott links South Atlantic OCS access bill to jobs growth plan

04/03/2014 US Sen. Tim Scott (R-SC) introduced a bill that would reverse the Obama administration’s exclusion of four South Atlantic coastal states from activ...

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected