The race is on: Cushing at a crossroads

Cushing, the largest US crude oil storage, blending, and distribution hub, has often been called “the pipeline crossroads of the world.” With US L48 and Canadian production growing rapidly and with increased capacity into Cushing, the stage is set for increased flows through the US benchmark hub. The current Cushing disposition to the US Gulf Coast depends on two main pipelines, with five new projects on the table that would add up to 2 million b/d of outflow capacity to Cushing by end-2020. In this report, we address existing Cushing logistical connections and pricing dynamics, and examine proposed outbound pipeline projects, with a focus on logistical downstream connections, project economics and returns.