Energy

Enterprise Products oil pipeline volume up 18% as demand recovers

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The headquarters of energy pipeline operator Enterprise Products Partners seen in Houston, Texas, U.S. September 27, 2020. Picture taken September 27, 2020. REUTERS/Gary McWilliams

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Nov 2 (Reuters) - Enterprise Products Partners LP's (EPD.N) crude oil pipeline volumes rose 18% in the third quarter, the U.S. energy pipeline operator said on Tuesday, as demand continued to recover from the pandemic slump.

Volumes on its natural gas liquids, crude oil, refined products and petrochemical pipelines have substantially recovered to near pre-pandemic levels despite temporary shut-ins from Hurricane Ida, the company said.

Total crude oil pipeline transportation volume rose to 2.05 million barrels per day (bpd) in the third quarter from 1.74 million bpd a year earlier. Overall volumes averaged 6.3 million bpd compared to 6 million bpd in the year-ago quarter.

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In a marked departure from previous oil price booms, top U.S. producers have restrained spending on production growth to provide shareholder dividends and buybacks.

"U.S. oil and gas industry is now in the hands of highly disciplined parties," co-Chief Executive Officer Jim Teague said during an earnings call.

Crude oil pricing remains on a path that is dictated by the OPEC+, which does not seem to be interested in pursuing another price war, he said.

"OPEC is also signaling that they believe the world is going to need every barrel we can get our hands on in the future, including U.S. shale."

Liquid volumes handled by the company's marine terminals was flat at 1.5 million bpd.

Natural gas pipelines transported a record 14.6 trillion British thermal units per day amid surging demand for the fuel as a scramble to fill inventories in Europe and Asia before the winter heating season has steadily boosted exports of liquefied natural gas from the United States.

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Reporting by Arathy S Nair in Bengaluru; Editing by Shailesh Kuber

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