According to sources, Energy Partners LP cancelled its plans for the $2 billion worth Freedom oil pipeline constructed. This pipeline could have brought a direct line from West Texas to the West Coast. The cancellation of the project was due to the increasing difficulty at the pipeline company's end of effectively selling large-scale projects. This is because oil producers and refiners depend on cheaper means of shipping crude oil through railroads.
Pipeline giants like Kinder Morgan will have to pay more attention in smaller projects. It should then branch out to other transportation sections as the scarcity of getting large scale projects increases according to Darren Horowitz.
In April, Kinder Morgan Energy Partners persuaded a daily 277,000 barrel pipeline. This was to woo the refiners at West Coast dependence on more expensive oils. These oils are shipped from Ecuador and Russia, to name a few. However, the refiners in California are in search for cheaper crude oil as it is already enjoyed by their competitors in the Gulf and Midwest Coast.
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