Houston-based Enterprise Products Partners said last week crude oil pipeline volumes declined 26.1 percent in 2020Q3 as covid19 pandemic lowered oil prices – leaving midstream companies with fewer barrels to transport after producers curtailed production. Reuters said U.S. pipeline companies have been reducing rates to encourage producers to use their lines as oil transport volumes decline. Enterprise said Oct. 28 crude pipeline transportation volumes fell to 1.7 million barrels per day compared to 2.3 million in 2019Q3.
Enterprise cancelled a Permian crude oil pipeline project designed to transport 450,000 b/d from Midland to the Houston area to save $800 million in two years.