The Journal Record
Companies unite for pipeline to Cushing

Tuesday, February 21, 2012

Three energy companies will build a 210-mile pipeline from an oil- and natural gas-rich area of western and north-central Oklahoma to a 1-million-barrel storage facility in Cushing.

The pipeline announced on Tuesday will send oil to Cushing, the largest U.S. oil-storage hub and delivery point for crude futures traded on the New York Mercantile Exchange. The hub's total capacity in operation was 66.5 million barrels at the end of September, according to the U.S. Energy Department.

Ryan Smith, an analyst with Colorado-based energy markets information and analytics company Bentek Energy LLC, said trucking is currently the mode of transportation to Cushing.

"Our understanding is that with the oil side of things, with Cushing so close, the major constraint is getting the product trucked there," Smith said.

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