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NuStar to move 600,000 bpd from

Permian to Gulf Coast in 2024

TEXAS NUSTAR Energy is planning to transport of 2021. The company’s adjusted net income was
600,000 barrels per day (bpd) of crude from $75mn for the fourth quarter of 2022, or $0.34
the Permian Basin to the Gulf Coast in 2024 for per share, compared with adjusted net income of Flows on NuStar’s
refining or export, company executives have $52mn, or $0.14 per share, for the fourth quarter
said. of 2021. This figure excluded insurance proceeds Permian crude
Flows on NuStar’s Permian crude system hit and a premium related to the repurchase of a
record-breaking volumes in the fourth quarter portion of the Series D preferred units. system hit
of 2022 with an average of 584,000 bpd. This rep- Production in the Permian has been surging,
resented an increase of 13% on volumes for the although it remains below pre-pandemic levels. record-breaking
fourth quarter of 2021, the company said in its Output from the basin has risen 12% compared volumes in the
fourth-quarter earnings report. with a year earlier, to a record 5.6mn bpd in
In 2023, NuStar is planning to spend $130- January. fourth quarter of
150mn in strategic capital. The US Energy Information Administra-
“We expect to allocate approximately $60mn tion (EIA) forecasts that crude production in 2022.
to growing our Permian system and plan to the Permian will increase by 470,000 bpd to
spend about $25mn to expand our West Coast average 5.7mn bpd in 2023. In 2022, US crude
renewable fuels network,” said NuStar’s executive output averaged an estimated 11.9mn bpd and is
vice president and chief financial officer, Tom expected to rise to 12.4mn bpd this year. In 2024,
Shoaf. “In addition, we expect to spend between the EIA forecasts that oil production in the Per-
$25mn and $35mn on reliability this year,” he mian will grow by 350,000 bpd.
added. ExxonMobil, Chevron and ConocoPhil-
San Antonio-based NuStar reported net lips have all said they are expecting growth in
income of $92mn for the fourth quarter of 2022, production in the Permian Basin this year. The
or $0.18 per share, compared with net income of basin also played a significant part in their prof-
$58mn, or $0.19 per unit, for the fourth quarter itability in 2022.™

P6 www. NEWSBASE .com Week 06 09•February•2023