Despite the high oil prices there is a massive glut of oil in Cushing, Oklahoma, the designated delivery point for Nymex crude oil futures, with CNBC's Scott Cohn, and Brian Johnson, Enbridge Energy, Cushing Region Dir. & GM - Airtime: 28 February 2011 (http://www.cnbc.com/id/15840232?play=1&video=3000007812)



...photos taken in Cushing today:

Flickriver - Cushing, Oklahoma (http://www.flickriver.com/photos/cameron_405/sets/72157626204850484/)


I spoke with a Deeprock Energy (Tulsa-based) employee and he was very excited about the new joint venture between Deeprock and Kinder Morgan. Deeprock has four tanks that hold 250,000 barrels each and are building three more of the same size.

Kinder Morgan Announces Crude Oil Storage Acquisition and Joint Venture (http://houston.citybizlist.com/17/2011/3/1/Kinder-Morgan-Announces-Crude-Oil-Storage-Acquisition-and-Joint-Venture.aspx)

Despite the high oil prices there is a massive glut of oil in Cushing, Oklahoma, the designated delivery point for Nymex crude oil futures, with CNBC's Scott Cohn, and Brian Johnson, Enbridge Energy, Cushing Region Dir. & GM - Airtime: 28 February 2011 (http://www.cnbc.com/id/15840232?play=1&video=3000007812)


...photos taken in Cushing today:

Flickriver - Cushing, Oklahoma (http://www.flickriver.com/photos/cameron_405/sets/72157626204850484/)


I spoke with a Deeprock Energy (Tulsa-based) employee and he was very excited about the new joint venture between Deeprock and Kinder Morgan. Deeprock has four tanks that hold 250,000 barrels each and are building three more of the same size.

Kinder Morgan Announces Crude Oil Storage Acquisition and Joint Venture (http://houston.citybizlist.com/17/2011/3/1/Kinder-Morgan-Announces-Crude-Oil-Storage-Acquisition-and-Joint-Venture.aspx)


I used to skydive in Cushing from 1979-84. While under canopy at 2000' those tank farms were great landmarks for finding the drop zone.

I used to skydive in Cushing from 1979-84. While under canopy at 2000' those tank farms were great landmarks for finding the drop zone.

...what a rush! Did you happen to take any photos on your dives?

I here ConocoPhillips is not interested in reversing the Seaway pipeline. So we have oil flowing into Cushing from the gulf, but we need the excess oil to flow towards the gulf where all the refineries are. That's what I read in an article explaining why there is such a big difference between the WTI and Brent.

...12½ minute video:


Keystone Pipeline Project

The U.S. $12 billion Keystone pipeline system will play an important role in linking a secure and growing supply of Canadian crude oil with the largest refining markets in the United States, significantly improving North American security supply.

On June 30, 2010, TransCanada commenced commercial operation of the first phase of the Keystone Pipeline System. Keystone's first phase was highlighted by the conversion of natural gas pipeline to crude oil pipeline and construction of an innovative bullet line that brings the crude oil non-stop from Canada to market hubs in the U.S. Midwest.

Keystone Cushing (Phase II) is an extension of the Keystone Pipeline from Steele City, Nebraska to Cushing, Oklahoma. The 36-inch pipeline is currently under construction and will connect to storage and distribution facilities at Cushing, a major crude oil marketing/refining and pipeline hub.

The proposed Keystone Gulf Coast Expansion Project is an approximate 2,673-kilometre (1,661-mile), 36-inch crude oil pipeline that would begin at Hardisty, Alberta and extend southeast through Saskatchewan, Montana, South Dakota and Nebraska. It would incorporate a portion of the Keystone Pipeline (Phase II) through Nebraska and Kansas to serve markets at Cushing, Oklahoma before continuing through Oklahoma to a delivery point near existing terminals in Nederland, Texas to serve the Port Arthur, Texas marketplace. (http://transcanada.essentialtalk.com/media/4/)

...what a rush! Did you happen to take any photos on your dives?

http://farm6.static.flickr.com/5095/5529966153_7ace1110d0.jpg (http://www.flickr.com/photos/55043200@N06/5529966153/)
AMH (http://www.flickr.com/photos/55043200@N06/5529966153/) by skyrick54 (http://www.flickr.com/people/55043200@N06/), on Flickr

This is me circa 1979, judging by the peace symbol helmet and porno moustache, over Cushing. The tank farms are out of frame to the left.

http://farm6.static.flickr.com/5298/5529936923_d5cde60d49.jpg

This is someone landing a reserve by the tank farm after a malfunction.

http://farm6.static.flickr.com/5095/5529966153_7ace1110d0.jpg (http://www.flickr.com/photos/55043200@N06/5529966153/)
This is me circa 1979, judging by the peace symbol helmet and porno moustache, over Cushing...

"...bow chicka wow wow!"

Thanks for sharing, Rick!

I here ConocoPhillips is not interested in reversing the Seaway pipeline. So we have oil flowing into Cushing from the gulf, but we need the excess oil to flow towards the gulf where all the refineries are. That's what I read in an article explaining why there is such a big difference between the WTI and Brent.

Streetwise Professor - Commodities, Derivatives, Economics, Energy (http://streetwiseprofessor.com/?p=4878)


...the spread between Gulf Coast oil prices (such as Louisiana Light Sweet) and West Texas Intermediate (at Cushing, OK) remains wide. The March LLS-WTI spread is $14.42/bbl, and is above $10/bbl through October, 2011. The key to restoring spreads to more typical levels is breaking the logistical bottleneck south of Cushing, thereby permitting Canadian oil that is weighing on prices in the Midcontinent to flow to the Gulf. The extension of the Keystone pipeline will help do that, but not for a couple of years. Another way to ease the logjam is to reverse the Seaway Pipeline, now flowing from the Gulf to Cushing, to carry crude in the opposite direction...


http://content.edgar-online.com/edgar_conv_img/2006/08/16/0000857644-06-000004_IMAGE27.JPG

FACTBOX-Energy issues facing the White House - Wednesday - 30 March 2011 (http://classic.cnbc.com/id/42335516)

"...Keystone Oil Sands Pipeline -- On the one hand a pipeline to bring crude from Canada's oil sands could go a long way in making America's energy future more secure. Canada is one of the top U.S. allies and the proposed $7 billion Keystone XL line that would bring oil from Alberta to Texas refineries could help cut reliance on the Middle East. But crude from the oil sands takes more energy to produce, resulting in more emissions than average petroleum used in the United States. U.S. farmers have also complained the pipeline's expected route goes over a fragile aquifer. This month the State Department ordered an additional environmental review and said that it expected to make a final decision on a permit by the end of the year. TransCanada Corp , which hopes to build and operate the line, hopes the line will be in service in 2013..."

Oklahoma producers seek probe of Cushing oil supply - 31 March 2011 (http://www.news.oeta.tv/headlines/energy/2960.html)


"...Oklahoma oil producers want the Corporation Commission to investigate the amount of crude oil stored at the Cushing oil terminal and its impact on Oklahoma oil prices..."

Misguided Call for Oklahoma Oil Regulator Market Intervention - 01 April 2011 (http://www.glgroup.com/News/Misguided-Call-for-Oklahoma-Oil-Regulator-Market-Intervention-53292.html)


"...the Oklahoma Corporation Commission should let free market forces work rather than intervene as requested Thursday by Domestic Energy Producers Alliance and Oklahoma Independent Producers Association..."

Morgan Stanley Celebrates the Launch of its First Exchange Traded Note (ETN) Launched by Institutional Equities at the New York Stock Exchange - 30 March 2011 (http://www.nyse.com/about/newsevents/1301481035437.html)


...Morgan Stanley Cushing ® MLP High Income Index ETN (NYSE Arca: MLPY) is the first ETN launched by Institutional Equities, and is the first in the expected launches of other ETN products by Institutional Equities that will be benchmarked to various indices. The Morgan Stanley Cushing® MLP High Income Index ETN tracks the performance of the Cushing® MLP High Income Index...


Em4tTBW6QXA

TransCanada says NY Times attack on pipeline unfair - 04 April 2011 (http://www.cnbc.com/id/42419429)


"...we think it's very unfortunate that the New York Times, with the credibility that publication has, did not offer a fair and balanced editorial opinion on the project unlike what other outlets in the U.S. have done recently,' said James Millar, a spokesman for the company..."

Oklahoma City Mayor Mick Cornett endorses pipeline project - 09 April 2011 (http://news.tradingcharts.com/futures/9/8/156634489.html)

"...'we believe America can increase energy security and stimulate economic growth by securing access to stable sources of petroleum in North America,' the mayors wrote in a letter dated Wednesday. 'Reliance on unfriendly and unpredictable sources of oil drains the economic resources of our most vulnerable constituents, and diminishes the ability of local governments to provide them with essential services...'"

Commentaries:

Point: Fighting ‘authoritarian oil oligarchs’
http://www.okgazette.com/oklahoma/article-11894-point-fighting-%E2%80%98authoritarian-oil-oligarchs%E2%80%99.html

Counterpoint: ‘Good for Oklahoma’
http://www.okgazette.com/oklahoma/article-11895-counterpoint-%E2%80%98good-for-oklahoma%E2%80%99.html

Crude awakening

Environmentalists and supporters of the controversial TransCanada Keystone XL pipeline project took turns at a public forum.

http://www.okgazette.com/oklahoma/article-13255-crude-awakening.html

I hope that The Historic Hudson Oil Company Refinery is still available for public viewing from the highway.
It's juxtapostion nearly across the road from The Pipeline Shrine was awe inspiring.

Maybe not as inspiring as The Former Marland/Conoco Mansion/Refinery in Ponca City.
But inspiring, nonetheless.

Cushing named as the site for full conversion crude refinery

Posted on May 24, 2023
Media release


(Cushing, Oklahoma) – The Cushing Economic Development Foundation, Inc. and the City of Cushing, Okla., are excited to announce that Southern Rock Energy Partners, LLC (SREP) has selected Cushing as the site for the United States’ next-generation, full conversion crude refinery.

The project is expected to have $5.56 billion in capital investment and supply 423+ full-time employees for operations. Total economic impact for the first decade of operations of the facility to the Cushing area and the state of Oklahoma is estimated to be more than $18 billion.

“On behalf of the citizens and Commissioners of the City of Cushing, we would like to welcome Mr. Steven Ward and the entire team of Southern Rock Energy Partners to Cushing,” stated Chairman Ricky Lofton, Cushing City Commission. “Since the discovery of the Cushing-Drumright Oil Field in the early 1900s, Cushing has been at the epicenter of North America’s energy markets. More than 50 refineries have called Cushing home over our history, and we are looking forward to another successful energy-supplying partnership based upon modern
technological advancements.”

Cushing is the “Pipeline Crossroads of the World” for crude oil, with approximately 100 million barrels of storage in the tank farms surrounding the community. Cushing is the delivery point for West Texas Intermediate, a blend of US light sweet crude oil streams traded on the New York Mercantile Exchange. The city’s strategic position as a major hub in oil supply led to WTI’s development as a significant physical market price reference or benchmark for over three decades. Cushing is the most significant trading hub for crude oil in North America.

“We would like to thank the Cushing Economic Development Foundation, the Cushing Industrial Authority, the City of Cushing and the Oklahoma Department of Commerce for their willingness to work side-by-side with us during this phase of the refinery project,” stated Ward, Managing Member, SREP. “The dedication of the professional economic development organizations of Oklahoma has made and will make our efforts to advance the energy independence of the United States, by processing domestically produced crudes into cleaner transportation fuels, a reality.”

Southern Rock Energy Partners, LLC (SREP) is developing a 250,000 BPD next-generation, full conversion crude refinery in Oklahoma. The refinery complex will reduce and eliminate 95% of greenhouse gas emissions while producing approximately 91.25 million barrels or 3.8325 billion gallons annually of cleaner transportation fuels including gasoline, diesel, and jet fuel from crudes sourced domestically from the Anadarko, Permian, Denver and Julesburg, and Bakken Basins. The project will be constructed over a 36-month period beginning in 2024 with
commercial operations beginning in 2027.

Cushing named as the site for full conversion crude refinery

Posted on May 24, 2023
Media release


(Cushing, Oklahoma) – The Cushing Economic Development Foundation, Inc. and the City of Cushing, Okla., are excited to announce that Southern Rock Energy Partners, LLC (SREP) has selected Cushing as the site for the United States’ next-generation, full conversion crude refinery.

The project is expected to have $5.56 billion in capital investment and supply 423+ full-time employees for operations. Total economic impact for the first decade of operations of the facility to the Cushing area and the state of Oklahoma is estimated to be more than $18 billion.

“On behalf of the citizens and Commissioners of the City of Cushing, we would like to welcome Mr. Steven Ward and the entire team of Southern Rock Energy Partners to Cushing,” stated Chairman Ricky Lofton, Cushing City Commission. “Since the discovery of the Cushing-Drumright Oil Field in the early 1900s, Cushing has been at the epicenter of North America’s energy markets. More than 50 refineries have called Cushing home over our history, and we are looking forward to another successful energy-supplying partnership based upon modern
technological advancements.”

Cushing is the “Pipeline Crossroads of the World” for crude oil, with approximately 100 million barrels of storage in the tank farms surrounding the community. Cushing is the delivery point for West Texas Intermediate, a blend of US light sweet crude oil streams traded on the New York Mercantile Exchange. The city’s strategic position as a major hub in oil supply led to WTI’s development as a significant physical market price reference or benchmark for over three decades. Cushing is the most significant trading hub for crude oil in North America.

“We would like to thank the Cushing Economic Development Foundation, the Cushing Industrial Authority, the City of Cushing and the Oklahoma Department of Commerce for their willingness to work side-by-side with us during this phase of the refinery project,” stated Ward, Managing Member, SREP. “The dedication of the professional economic development organizations of Oklahoma has made and will make our efforts to advance the energy independence of the United States, by processing domestically produced crudes into cleaner transportation fuels, a reality.”

Southern Rock Energy Partners, LLC (SREP) is developing a 250,000 BPD next-generation, full conversion crude refinery in Oklahoma. The refinery complex will reduce and eliminate 95% of greenhouse gas emissions while producing approximately 91.25 million barrels or 3.8325 billion gallons annually of cleaner transportation fuels including gasoline, diesel, and jet fuel from crudes sourced domestically from the Anadarko, Permian, Denver and Julesburg, and Bakken Basins. The project will be constructed over a 36-month period beginning in 2024 with
commercial operations beginning in 2027.

Nice! Great news for the State and for Cushing!

Holy sh!t this is huge. What an amazing get. This by far has to be the biggest investment in Oklahoma's history, no?

Sorely needed for more refineries in the US. Good news all around.

There was talk some years back about rebuilding the north/south rail line that connects to the track in Davenport.

There was talk some years back about rebuilding the north/south rail line that connects to the track in Davenport.

As I understand it, WATCO (the parent company of the Stillwater Central railroad) looked at rebuilding the track from Davenport to Cushing, but they were unable to acquire all of the land they needed to make it happen - and then the shale oil boom started dropping off, reducing interest in building the line. They decided instead to build a pipeline from Cushing to a new transload facility right off the SLWC in Stroud. My best guess is that they may expand the transload facility for the refinery instead of trying to revive the Davenport-Cushing rail line idea. As a rail nerd, part of me hopes I end up being wrong though!

This new refinery sounds like a great get for Cushing!

^^^ even as a non rail nerd but an infrastructure nerd(does that count? Lol) id love to see the rail revival happen as well.

Between this, the Inola solar panel facility, and Panasonic, that's over 10 billion dollars in industrial development for just three projects. That's a big win for Oklahoma. Especially in just the span of a couple months. My only wish is that the Ardmore, Enid, and Lawton areas would start scoring some industrial development. But, in my world, that's what we should be trying to get. As much manufacturing as possible to the state. It would provide blue and white collar jobs to people as well as provide momentum for further development around the facilities.

Never heard of Southern Rock Energy Partners. Anyone know who is backing them?

TW Article: https://tulsaworld.com/news/state-regional/business/cushing-chosen-as-site-for-5-56-billion-refinery/article_079fccee-fa5e-11ed-b9ce-ff69e90ac645.html

So few jobs for such a large investment. But still great for the state.

So few jobs for such a large investment. But still great for the state.

But this story says for construction alone, 1,250 jobs will be available over the next two to three years. So, lots of people coming in. Housing prices and rents will likely go way up. Area towns will benefit greatly. If not enough housing, maybe some workers will have to commute from OKC and Tulsa: https://www.fox23.com/news/cushing-chosen-for-5-5-billion-refinery-investment/article_acf2712e-fa6d-11ed-a741-4fa7ed1136e5.html

423 new refinery jobs considerably better than nothing for a small town.

But this story says for construction alone, 1,250 jobs will be available over the next two to three years. So, lots of people coming in. Housing prices and rents will likely go way up. Area towns will benefit greatly. If not enough housing, maybe some workers will have to commute from OKC and Tulsa: https://www.fox23.com/news/cushing-chosen-for-5-5-billion-refinery-investment/article_acf2712e-fa6d-11ed-a741-4fa7ed1136e5.html

423 new refinery jobs considerably better than nothing for a small town.

Oh no, it will be great for Cushing. But it just seems high on a per permanent job basis, rhe investment is high. But these are good-paying jobs, so it will likely pay off, just take a bit more time.