Texas-based Vista Proppants and Logistics has struck a deal with logistics firm JupiterMLP to transload crude oil from truck to rail at Pecos, Texas, and ship crude on the Union Pacific Railroad through 2019 and potentially into 2020, to seize crude-by-rail opportunities for moving oil out of the Permian until pipeline capacity catches up with rising production. The Permian production exceeding pipeline takeaway capacity has depressed the prices of Midland, Texas, crude compared to the price of the grade at Houston, and shippers and producers are looking for other ways of moving the oil to the market. Currently Vista expects to ship around 400,000 barrels per month from Pecos to St James, Louisiana. “The amount of crude shipped out of Pecos could be larger than Vista’s current estimate, which is dependent on the number of available train slots each month. Union Pacific has indicated they will continually evaluate their […]