RD Shell & Marathon OIl co. announced they will reverse the flow of oil in a pipeline so that will flow from Chicago to the Gulf Coast. This along with the Seaway Pipeline will be the second to reverse flow from the midwest region to the Gulf Coast. It should help alleviate fears about being able to sell the petroleum, etc., produced by PGH. Sorry, Shorts. Lol
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.