Cushing to Relieve Crude Bottleneck
New pipelines will relieve Cushing oil glut — eventually
New pipeline capacity is slowly relieving the glut in Cushing, but full relief is not expected until at least 2015. The oil backlog has caused local producers to receive as much as $20 per barrel less than the international price for their crude.
By Adam Wilmoth | Published: February 15, 2013
The flood of new oil production throughout the middle of the country has created a backlog in Cushing while shippers wait in line to move the crude to refineries on the Gulf Coast.
A slew of new pipelines promises to relieve the glut, but most of the planned lines are still under construction.
Full relief is not expected until 2015.
The excess crude has suppressed prices for local producers, driving down the sales price as much as $20 a barrel as compared with international prices.