Enterprise Crude Pipeline Transport Volumes Drop Over 26% on Oil Price Plunge
(Reuters) — Enterprise Products Partners on Wednesday said crude pipeline volumes fell 26.1% in the third quarter as the COVID-19 pandemic hurt oil prices and left midstream companies with fewer barrels to transport after producers slashed output.
The coronavirus outbreak ended a boom in U.S. shale production, which had prompted a rapid expansion of U.S. pipeline networks to carry oil from fields to processing centers and onto refineries and export terminals.
AJ Teague, co-chief executive officer of pipeline operator Enterprise, said he expects a signal for higher crude oil prices as early as the second half of next year on recovering demand and a sharp decline in shale production.
"In the interim, we believe the midstream industry will be challenged in its producer-facing businesses," Teague said.
U.S. pipeline companies have been sweetening terms and reducing rates to keep producers using their lines as oil transport volumes decline due to the pandemic-led plunge in demand.
Crude pipeline transportation volumes fell to 1.7 million barrels per day (bpd) in the quarter from 2.3 million bpd a year earlier.
In September, Enterprise abandoned a major 450,000-bpd Permian crude pipeline project in Texas, one of numerous projects on hold due to the slump in demand and agreed to give customers lower near-term commitments on other pipelines.
Revenue fell 13.1% to $6.92 billion, missing analysts' estimate of $7.1 billion, hurt by a fall in volumes of gas, natural gas liquids and crude oil as well as lower crude terminal volumes.
Related News
Related News
![](/media/2035/pgj-enews-graphic-300x1404.jpg)
- Mexican President: Billionaire Slim Interested in Pemex Natural Gas Project
- Freeport LNG Sues Three Contractors Over Defects at Texas Plant
- Energy Transfer Adds 6,000 Miles of Pipeline with $3.25 Billion WTG Midstream Acquisition
- FERC Approves Transco's Texas to Louisiana Gas Pipeline Project
- Williams Says Court Rules in Its Favor in Pipeline Dispute with Energy Transfer
- U.S. to Buy 4.5 Million Barrels of Oil to Replenish Strategic Petroleum Reserve
- Kurdish Oil Smuggling to Iran Flourishes
- U.S. Court Overturns Alaska Oil Lease Sale, Halting Energy Development
- Second Gas Pipeline Rupture in Texas’ Reeves County Raises Environmental Concerns
- Williams Begins Louisiana Pipeline Construction Despite Ongoing Legal Dispute with Energy Transfer
Comments