Study says Gulf Coast ports can't keep up with Permian output

(BY: MATTHEW V. VEAZEY, RIGZONE.COM) -- A new study from the University of Houston (UH) concludes that U.S. refiners and other domestic customers will be unable to absorb growing Permian Basin production. It also finds most Gulf Coast ports are not ready to handle the largest – and most cost-effective – ships for exporting crude oil.

Prepared by UH Energy and the UH Department of Industrial Engineering, the study finds that the Port of Houston likely will be unable to handle very large crude carriers (VLCCs). UH researchers cite the relatively shallow depth of the Houston Ship Channel and air quality considerations as key limitations to introducing VLCCs at the port.
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