Gulf-Certain Tar Sands For Export
On jf petroleum machinery houston tx news November 13, the day before the U.S. Home of Representatives voted to approve Keystone XL North, Enterprise acquired Oiltanking. Both companies stand to gain from its potential approval, as effectively as the current approval of Keystone XL’s Clone, and both corporations have made huge bets on fossil fuel exports at-giant. The Keystone XL clone — the Alberta to Freeport, Texas combination of Enbridge’s Alberta Clipper, Flanagan South and Seaway Twin pipelines — has a key tie to Enterprise Merchandise. That’s, Enterprise co-owns the Cushing, Oklahoma to Freeport, Texas Seaway Twin pipeline with Enbridge. In June, Enterprise acquired certainly one of the primary oil export permits in more than 4 a long time from the Obama Administration. Oiltanking, in flip, owns two key Gulf-space terminals that may function a closing vacation spot for Enbridge’s tar sands diluted bitumen (“dilbit”). One among them sits in the Houston Ship Channel, while the opposite sits in Beaumont, Texas. As coated beforehand on DeSmogBlog, Keystone XL South has a key fork within the road called the Houston Lateral Pipeline that will supply Houston”s refinery row with dilbit. An article printed in RBN Power by Sandy Fielden defined that TransCanada”s Houston Lateral will feed into Oiltanking’s Houston Ship Channel terminal. Seaway Twin additionally has two lateral pipelines in the works from Freeport, one in all which is able to deliver dilbit to the Oiltanking-owned Houston Ship Channel terminal. Image Credit: Seaway Twin Pipeline Enterprise: Oiltanking for Fossil Gas Exports
The interconnected enterprise plans of Enterprise and Oiltanking, with Enterprise accounting for 30 % of Oiltanking’s gross sales prior to acquisition, further calls into question whether the pipelines have anything to do with “energy independence.” Industry analysts agree. “Some of it will stay in Gulf, some of it is going to depart,” Sarah Emerson, president of Vitality Security Evaluation, Inc. stated in a current Reuters article. “I don’t think anyone would have constructed if they thought the oil was just going to stay in the Gulf Coast, that’s like bringing coal to Newcastle.” Look no further than to Enbridge, which as DeSmogBlog identified in a recent article, has already begun exporting tar sands to the worldwide market through its subsidiary, Tidal Energy jf petroleum machinery houston tx news Advertising and marketing. Traders instructed Reuters they anticipate tar sands exports to increase when Seaway formally opens for enterprise in December. LPG, Coal, Petcoke Exports
Oiltanking’s assets also function key terminals for exporting liquid petroleum fuel (LPG), coal and petroleum coke (“petcoke”). Petcoke is a tar sands by-product presently exported from the U.S. at file rates. Enterprise exports LPG from Oiltanking’s Houston Ship Channel terminal and it lately expanded its capacity to take action. “Upon completion of the expanded amenities, Enterprise could have aggregate capability to load in excess of sixteen million barrels per 30 days of low-ethane propane and/or butane,” defined a press release announcing the enlargement. Within the coal sphere, Oiltanking purchased United Bulk Terminal as a wholly-owned subsidiary in 2012. United Bulk Terminal “is the largest dry bulk export terminal on the Gulf Coast and is taken into account a important logistic hyperlink in coal and petroleum coke worldwide supply chains,” its web site explains. In May, environmental groups filed a lawsuit against Oiltanking for “unpermitted discharge into the Mississippi River and vital construct-up of coal in the batture and along the river’s edge.” The teams alleged Oiltanking “failed on a daily basis to take all reasonable steps to attenuate or appropriate the adversarial environmental impacts resulting from its spilled wastes for at the very least the previous five years, and continues to fail every day to attenuate or right the environmental impacts from its waste — including without limitation waste that’s now positioned within the [Mississippi River].” Photograph Credit: Gulf Restoration Network Tar Sands Exports Next
Now that Enterprise has purchased Oiltanking, multiple enterprise, industry and investor press articles have argued they did in order a forward-looking wager on the potential of a wholesale lifting of ban on exports of U.S.-produced oil by the Obama Administration. Bloomberg, for instance, hailed it “the most recent bet on the rising marketplace for U.S. vitality exports.” Others sang an analogous music. “Oiltanking Partners’ belongings are strategically situated to take advantage of U.S. oil exports if the 4-decade prohibition is lifted,” declared an article within the Motley Idiot, a preferred investor press publication. “That entry to water and ample storage capacity put Oiltanking Companions in prime position to export oil within the event of federal approval of such enterprise.” Investor credit score-ranking agency Normal & Poors also chimed in, giving the merger a BBB+ funding score (among the very best grades possible) and taking word of the corporate’s export agenda. Sen. Landrieu referred to those mentioning that Gulf-certain tar sands pipelines like Keystone XL are at the very least in part for export as “ranting.” However the reality is that if the business and their investors get it their way, they’ll quickly be festively raving all the approach to the financial institution.
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Research Fellow, DeSmogBlog
Oiltanking Obama Oil Exports U.S. Sen. John Hoeven John Hoeven Customary & Poor’s
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