Oil pipeline planned for Texas refineries

Two U.S. energy companies announced plans to build a 400-mile pipeline in Texas to deliver 300,000 barrels of oil per day to the Gulf Coast region. Magellan Midstream Partners and Occidental Petroleum Corp. announced plans to move forward with the construction of the BridgeTex oil pipeline to deliver oil from Colorado City, Texas, to the coastal area near Houston. The companies said the pipeline is designed for up to 300,000 barrels per day for refineries along the southern Texas coast. It's expected to enter into service by mid-2014. The American Petroleum Institute in its latest production assessment said Texas was the top oil producing state in the United States. The state's Railroad Commission reports August oil production was, on average, 1.3 million bpd, up from 938,864 bpd for the average in August 2011. Oil companies are working to expand the access to Gulf Coast refineries. TransCanada, the company planning the Keystone XL oil pipeline, is building the so-called Gulf Coast project to deliver oil from a refining hub in Cushing, Okla., to the Gulf Coast market. Magellan and Occidental said the project has the support of U.S. regulators.