May 9, 2011 [Dow Jones Newswires] - Enbridge Energy Partners will build another 1 million barrels (160,000 m3) of oil storage capacity at Cushing, Okla., as crude stockpiles in the area hover near record levels.
The additional storage, expanding on previous plans to add 3 million barrels (477,000 m3) of new tank space, would bring Enbridge’s total capacity at Cushing to 18.8 million barrels (2,9 Mm3) by the end of 2012, spokesman Larry Springer said. Enbridge is the largest operator of storage at Cushing, with 14.8 million barrels (2,3 Mm3) of capacity there.
Several other storage operators at Cushing have also announced plans in recent months to add more storage and accommodate the growing oil flow.
The move should help alleviate the oversupply at Cushing, a critical oil pipeline hub and the delivery point for the main oil futures contract traded on the New York Mercantile Exchange. An influx of oil from the central U.S. and Canada in recent months has led to soaring supply levels at Cushing, depressing the price of the Nymex contract compared with other crude grades and causing many market players to question whether the contract accurately reflects global prices.
