Read a FOX business article that Marathon thinking about reversing the pipeline if Keystone not approved. The oil will get out it and prices will improve it just a matter of time. Until then we get a big dividend to wait. I posted the link but the yahoos at yahoo deleted my post.
I could see why Marathon would want to reverse this pipeline with the purchase of the Texas City refinery in order to obtain cheap canadian oil.
"This is a unique opportunity to acquire, at an attractive price, a world-scale refinery on the western Gulf Coast that is well positioned to benefit from the growing supply of North American crude oil," said MPC President and Chief Executive Officer Gary R. Heminger. "The refinery and related assets should enhance our current footprint by integrating well with our existing operations. This transaction will provide MPC the opportunity to grow in contiguous markets, expand our export opportunities and further optimize our Gulf Coast operations. We believe this transaction will create long term value for our shareholders."
by Zacks Equity Research
February 01, 2013 | Comments : 0Recommended this article: (0)
EPD | RDS.A | ENB | MPC
Independent oil refiner and marketer Marathon Petroleum Corporation (MPC - Analyst Report) is planning to reverse the Capline pipeline to transport oil from the Midwest to the Gulf Coast refining belt. The reversal will help in draining the excess crude oil from increased drilling in the Midcontinent.
The 1.2 million barrel-a-day Capline pipeline is currently operated by Shell Pipeline, a subsidiary of Royal Dutch Shell plc (RDS.A - Analyst Report). Marathon owns 32.6% of the same and at present, the pipeline delivers crude oil from Louisiana to Illinois.
Marathon is expected to start operating the 630-mile pipeline from Sep 2013. Other details of the deal are yet to be disclosed by the company.
This will be the second key pipeline reversal following the Seaway pipeline. Enbridge Inc. (ENB - Snapshot Report) and Enterprise Products Partners (EPD - Analyst Report) have plans to convert the Seaway pipeline in a month and increase its capacity to 400,000 barrels a day by 2013.