ONSHORE CRUDE OIL PIPELINES & SERVICES
Enterprise owns approximately 4,411 miles of onshore crude oil pipelines within eight pipeline systems and 12.4 MMBbls of storage capacity. Our onshore crude oil pipeline systems gather and transport crude oil primarily to refineries, centralized storage terminals and connecting pipelines in Oklahoma, New Mexico and Texas.
Revenue from crude oil transportation is generally based upon a fixed fee per barrel transported multiplied by the volume delivered. Therefore, the results of operations are generally dependent upon the volume of product transported and the level of fees charged to customers.
We own crude oil terminal facilities in Cushing, Oklahoma and Midland, Texas, which are an integral part of our onshore crude oil operations. In general, the crude oil terminals are used to store crude oil volumes for us and our customers. Under our crude oil terminaling agreements, we charge customers for crude oil storage based on the number of days a customer has volumes in storage multiplied by a storage rate.
Our crude oil marketing activities generate revenues from the sale and delivery of crude oil obtained from producers at the wellhead or through bulk purchases from third parties on the open market at pipelines, terminal facilities and trading locations. These sales contracts generally settle with the physical delivery of crude oil to customers.
Description of Asset |
Ownership Interest |
Useable Storage Capacity (MMBbls) |
Miles |
Function |
Crude oil pipelines |
||||
Seaway Crude Pipeline system |
50% (1) |
5.0 |
530 |
Transports imported crude oil from Freeport, TX to Cushing OK and supplies crude oil to refineries in the Houston area through its terminal facility at Texas City, TX. |
Red River System |
100% |
1.5 |
1,690 |
Transports crude oil from North Texas to south Oklahoma for delivery to two local refineries or pipeline interconnects for further transportation to Cushing, OK. |
South Texas System |
100% |
1.1 |
1,150 |
Transports crude oil from an origination point in South Central Texas to the Houston area. |
West Texas System |
Various (1) |
0.4 |
360 |
Connects crude oil gathering systems in West Texas and Southeast New Mexico to our terminal in Midland, TX. |
Other (4 systems) (2) |
100% |
0.3 |
681 |
|
Total miles |
|
|
4,411 |
|
 |
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Crude oil terminals |
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Cushing terminal |
100% |
3.1 |
|
Provides crude oil storage, pumpover and trade documentation services. |
Midland terminal |
100% |
1.0 |
|
Provides crude oil storage, pumpover and trade documentation services. |
Total capacity |
|
12.4 |
|
|
(1) Our ownership interest in this pipeline is held indirectly through our equity method investment in Seaway Crude Pipeline Company.
(2) Includes our Azalea, Mesquite and Sharon Ridge crude oil gathering systems and Basin Pipeline System.