Crude by Pipeline
As distinct from natural gas, crude oil pipelines are regulated as “common carriers”; capacity has to be granted to any creditworthy entity. In constrained basins, this pipeline capacity becomes a valuable asset even though the capacity is limited by the number of other entities also obtaining capacity. UET has secured pipeline capacity in most of the constrained shale oil basins.
UET now transports crude oil on multiple pipelines across the U.S. and Canada. This footprint is expanding every month. Combined with its partners, UET presently has capacity on individual pipelines as high as 25,000 barrels a day and combined capacities across all pipelines in excess of 65,000 barrels per day. Our ever-expanding pipeline presence allows us to leverage our extensive producer relationships to purchase discounted crude oil, transport to higher price markets, and sell in relatively non-transparent markets that are generally not accompanied by liquid price indices, producing significant revenues each month.
- Tallgrass – Pony Express Pipeline
UET was able to procure the largest amount of firm space on Pony Express Pipeline’s NECL system.