Crude oil pipeline to double capacity

PLATTEVILLE – The 527-mile-long White Cliffs crude oil pipeline that runs from Northern Colorado to Oklahoma will double its capacity in August.

The White Cliffs pipeline, owned by subsidiaries of Rose Rock Midstream LP (NYSE: RRMS), Plains All American Pipeline LP (NYSE: PAA), Western Gas Partners LP (NYSE: WES) and Noble Energy Inc. (NYSE: NBL), will increase in capacity to 150,000 barrels of oil per day from 76,000 barrels per day.

Pipeline owners installed a 12-inch pipeline on top of the existing 12-inch pipeline, said spokeswoman Kiley Roberson of Tulsa, Okla.,-based SemGroup Corp., which formed Rose Rock Midstream.

The pipeline stretches from Platteville to Cushing, Okla., where Rose Rock Midstream has a storage facility, from which oil is shipped to refineries. Anadarko Petroleum Corp. (NYSE: APC) and Noble Energy, two of the largest oil producers in Northern Colorado, will use the pipeline to transport oil from the region.

Colorado saw record oil production last year and many producers have turned to rail to ship crude oil due to limited oil pipeline capacity. The White Cliffs pipeline is the only pipeline system to transport crude directly from Northern Colorado to Cushing.

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