Genscape observed the shutdown of the 850,000 barrel per day Seaway Pipeline system when decreased power consumption was detected at multiple pumping stations at approximately 11 p.m. (EDT) on October 23, 2016. A notice was sent to Genscape customers at 7:36 a.m. (EDT) on October 24, and a subsequent alert was sent shortly after at 7:41 a.m. (EDT), notifying customers of decreased power consumption along the 450,000 bpd Seaway Twin pipeline. It was later revealed that a spill occurred along the 400,000 bpd Seaway pipeline near the crude storage hub at Cushing, OK, which caused a shutdown of the entire system. Genscape aerial imagery taken October 25 revealed cleanup crews and vacuum trucks near a retention pond as well as an exposed section of Seaway right of way. No tank operations seemed to be impacted by the accident, according to Genscape.
At approximately 12 p.m. (EDT) on October 24, Genscape detected increased power consumption at the Pontotoc and Chatfield pumping stations along the Seaway Twin pipeline, indicating pipeline flow resumed to near 409,000 bpd. Customers were notified of the restart at approximately 1:23 p.m. (EDT) on the same day. Seaway Twin had been shut down as a precautionary measure.
The company, which is a joint-venture between Enterprise Product Partners LP and Enbridge Inc., did not disclose how much crude was leaked but did state that the spill was mostly contained in a retention pond in an industrial area of Cushing, near Lynnwood Avenue and Texaco Road. “The impacted segment of the legacy pipeline has a capacity of 50,000 barrels; however the actual amount of crude oil released will be significantly less and won’t be determined until recovery efforts are complete,” the company stated.
The NYMEX Light Sweet Crude Oil front month futures contract fell $0.33/bbl to $50.52/bbl on October 24 as the pipeline shut down and restart events unfolded. WTI dropped below $50/bbl during intraday trading on October 24 for the first time since October 18. Genscape’s Cushing Inventory report, also released on October 24, showed a 1.033 million barrel draw in stocks at the hub between October 14 and October 21, which helped support WTI prices. Prices were further supported by a $0.12/bbl gain to $50.01/bbl during the seven minutes following the Genscape alert that Seaway Twin had resumed operations.
Genscape's Pipeline Services provide insight into major pipeline shutdowns, start-ups, flow changes, and construction. Using its proprietary energy monitoring technology, aerial photography, and industry expertise, Genscape offers an unprecedented view into critical pipelines supplying storage hubs and refineries in the United States and Canada. Real-time Seaway and Seaway Twin pipeline alerts are available to subscribers to the Mid Con Pipeline Service and the Gulf Coast Pipeline Service. The Mid-Continent Pipeline Service focuses on pipelines transporting crude in and out of PADD 2 locations. To learn more about Genscape's Mid-Continent Pipeline Service, or to request a free trial, please click here. Genscape’s U.S. Gulf Coast Pipeline Service provide real-time, proprietary insight into crude oil flows in and out of PADD 3 locations. To learn more, or to request a free trial, please click here.
Genscape's Cushing Crude Oil Storage data is collected using infrared cameras, aerial diagnostics, and other proprietary measurement techniques. This approach translates into highly accurate, advance notice of the actual oil storage levels at Cushing. To learn more or request a free trial of Genscape's Cushing Crude Oil Storage Report, please click here.