Texas Pipeline Surges Past Limits as Global Oil Demand Spikes

Key Details Texas oil pipelines are operating above designed capacity as overseas demand for U.S. crude surges to record levels. Pipeline flows from the Permian Basin to Gulf Coast export terminals have hit an all-time high, with daily volumes reaching 5.27 million barrels last week, according to Wood Mackenzie research. One system feeding Corpus Christi exporters is running at 102% of nameplate capacity, pushing infrastructure to its limits. Why It Matters The surge is draining domestic crude stockpiles at an alarming rate. Cushing, Oklahoma's key storage hub lost 1.7 million barrels in recent data, marking the steepest drop since early 2025. U.S. crude and refined product exports have reached record highs, with May expected to bring new peaks. The Pressure Building Increasing overseas demand is forcing domestic refineries to compete with international buyers for available barrels. This supply competition arrives at the worst possible timing, just as the summer driving season approaches. According to Wood Mackenzie analyst Lee Williams, flows along all major long-haul systems are essentially at full capacity, leaving little room for additional demand.