Occidental Petroleum Corp has positioned itself as a major player in U.S. crude exports, aiming to double daily shipments to 600,000 barrels by 2020. The company’s strategy relies on infrastructure developed through a 10-year pipeline agreement with BridgeTex, secured in 2012, which provides 200,000 barrels/day of capacity.
By 2017, Occidental became the top exporter of Permian Basin crude from the U.S. Gulf Coast, maintaining a top-three position through 2018. Industry analysis suggests the firm handles approximately 10% of U.S. crude exports, or 300,000 barrels/day, despite limited public data on company-level shipments.
The surge in U.S. crude exports followed the 2015 removal of a decades-old export ban, with daily shipments reaching 3.6 million barrels in late 2018. Occidental’s midstream and marketing segment reported a 17-fold profit increase to $1.9 billion in 2018, driven by its role in transporting Permian oil to Gulf Coast terminals.
Strategic Infrastructure and Market Position ¶
Occidental’s export capabilities include a 10-year contract for 450,000 barrels/day at the Ingleside terminal in Corpus Christi, Texas, where it tested supertanker exports in 2017. Though sold to Moda Midstream, the company retains access to the facility, which offers a 75-cent-per-barrel cost advantage over other Gulf Coast ports.
The firm secured 17% of rival Pioneer Natural Resources’ production in 2018 and 34% of its purchased crude through contractual agreements. Executives emphasized the terminal’s role in attracting Asian buyers seeking large-volume shipments, with plans to expand Permian pipeline capacity to 470,000 barrels/day by 2019.
Moda Midstream, now owner of the Ingleside terminal, is expanding storage capacity and exploring a second VLCC berth to meet rising export demand. Industry sources noted Occidental’s focus on Gulf Coast accessibility as a key factor in attracting Asian buyers seeking large-volume shipments.
