Sunoco Logistics announces new pipeline project

Energy logistics provider Sunoco Logistics Partners LP announced a new pipeline to increase flow of crude oil from west Texas to Gulf Coast markets. The Wichita Falls-to-Nederland Permian Express pipeline ...

Here I comment on some recent developments affecting the prices of WTI, Brent, and gasoline.

CALGARY — It takes, on average, about six days to barge 150,000 barrels of oil sands crude along inland waterways from north of St. Louis to the refining hub of St. James on the Louisiana Gulf Coast. The route, including passage on the Mississippi River, is one being marketed by Jeffersonville, Ind.-based American Commercial Lines Inc. to oil sands companies hit hard by price discounts as an alternative path to the Gulf Coast refining corridor as major projects such as TransCanada Corp.’s Keystone XL have become mired in controversy and U.S. politics.

The EIA last week released a nice summary of planned additional U.S. pipeline capacity.

By Zacks Investment Research: Sunoco Logistics Partners L.P. (SXL) recently delivered its sixth straight positive earnings surprise and announced its 30th consecutive quarterly distribution increase.

Enterprise Products Partners LP and Enbridge Inc. have completed an expansion of the Seaway pipeline that will increase the supply of crude oil from the U.S. Midwest to refineries along the Gulf Coast. The 500-mile (805-kilometer) line running from Cushing, Oklahoma, to Freeport, Texas, has resumed full service after shutting Jan. 2 to complete the final connections necessary to expand the line’s capacity to 400,000 barrels a day from 150,000 barrels, the companies said.

“I’m very optimistic we will get the contractual support we will need and what I would hope is the pipeline goes all the way to Saint Joh.” – Russ Girling Crude from Alberta’s oil sands sells at a 30% discount to its U.S. counterpart. TransCanada Corp. Chief Executive Officer Russ Girling plans to narrow that gap whether or not his Keystone XL pipeline to the Gulf of Mexico wins approval from the Obama administration.

The price of West Texas Intermediate has risen almost $10 a barrel since the start of September, and briefly bumped back above $100 a barrel this week. Here's why I think that development may not be as worrisome for the U.S. economy as it might sound.