Menu

Powering The Communities Where We Live, Work And Play

The Gray Oak Pipeline will provide jobs and economic benefits to the community members who live and work along the pipeline route. The project will create more than 3,000 construction jobs and 30 full-time jobs, economic activity along the route and property tax revenue for local governments. More importantly, the pipeline will provide long-term economic benefits. Greater access to a secure and reliable source of U.S. oil will contribute to the economic vitality of the state and improve the global competitiveness of the refining industry in Texas.

During early stages of the pipeline planning process, we’re talking with local and state elected officials openly and transparently to share plans for the Gray Oak Pipeline. Surveyors have been on the ground meeting with landowners, seeking approval to access their land for survey. These landowners will be reimbursed for easements and temporary crop disruption. It is our commitment to the communities where we live and work to leave our work areas in better condition than we found them. A majority of the Gray Oak Pipeline route follows existing pipeline corridors. It was carefully chosen for its ability to serve new oil and gas production while minimizing environmental and community impact.

 

Phillips 66 History in Texas:

  • Philips 66 operates 13 refineries in the United States and Europe. Two of those refineries are in Texas: the Sweeny Refinery and the Borger Refinery. Phillips 66 is also headquartered in Houston, Texas.
  • Phillips 66 also manages a 21,000-mile nationwide network of pipelines that carry oil, gas and other hydrocarbon products. In Texas, we manage approximately 3,300 miles of pipeline and 12 storage facilities.
  • Phillips 66 has had a Texas presence for over 90 years and currently employs more than 4,000 people throughout the state.
    • Our company headquarters in Houston employs approximately 2,000.
    • The Sweeny Refinery has operated since 1947 and currently employs more than 1,000.
    • The Borger Refinery has operated since 1926 and currently employs more than 700.
      • We operate pipelines and storage terminals throughout the state that employ more than 200.
      • Our investment in Texas creates jobs, increases related economic activity and adds tax revenue in the communities where we operate.
        • Annual direct economic impact in Texas:
          • $340 million in taxes paid (state, property, payroll, motor fuel sales, sales & use taxes).
          • $900 million in payroll.
          • Assets of $8 billion.
          • $10 million in charitable contributions.
        • Phillips 66 has long-term partnerships with communities and nonprofit organizations to participate in projects that improve the quality of life in Texas. Nationally since 2012, Phillips 66 has donated more than 300,000 volunteer hours in local communities and more than $26 million through matching gifts and volunteer grants. In Texas, our employees have donated more than 42,000 volunteer hours and almost $5 million through matching gifts and volunteer grants.
        • Phillips 66 has also contributed directly to many local community and environmental projects in Texas.

 

Operational, economic, social and environmental sustainability is at the heart of how Phillips 66 provides energy and improves lives.

For more information click here.

What is the Gray Oak Pipeline?

The Gray Oak Pipeline will be a new, 850-mile-long pipeline transporting crude oil from the West Texas Permian Basin to destinations in the Corpus Christi, Sweeny and Freeport markets.

  • Gray Oak Pipeline LLC is a joint venture owned by Phillips 66 Partners, Marathon Petroleum and Enbridge. Phillips 66 will build and operate the pipeline, which is expected to be in service by the end of 2019.
  • The majority of the pipeline route follows existing infrastructure corridors minimizing short-term disruption and the pipeline’s overall footprint.
  • The pipeline will have initial capacity of 800,000 barrels per day (BPD) based on shipper commitments of 700,000 BPD and the reservation of capacity for walk-up shippers. The pipeline is expandable to approximately 1 million BPD subject to additional shipper commitments (as of July 27, 2018).

What is the benefit of the Gray Oak Pipeline?

The Gray Oak Pipeline is being constructed to support the continued growth of the Texas energy industry, responding to market demand for transportation infrastructure to market centers on the U.S. Gulf Coast.

  • The Gray Oak Pipeline will provide a reliable method of delivering crude oil to the Corpus Christi and Sweeny/Freeport market centers from West Texas. Current pipeline takeaway is limited for transporting oil from the Permian basin, supplies are often bottlenecked and frequently shipped by truck.
  • This new pipeline means more oil will be transported via pipeline and not over the road, which will reduce highway traffic.
  • Greater access to a secure and reliable source of U.S. oil will contribute to the economic vitality of the state and improve the global competitiveness of the refining industry in Texas.
  • The economy will also benefit because some of the pipeline construction firms we are using are Texas-based companies.
  • Local economies will see long-term benefits from property tax revenues from the new pipeline. We will be creating full-time positions in some communities where storage facilities will be located. Local services like restaurants, hotels, grocery stores and gas stations can expect to see increases in business during the construction phase.

Why is a new pipeline necessary?

  • New pipelines ensure new energy being found and produced in North America can get from production sites to refineries, manufacturers and, ultimately, consumers in various forms. They provide a vital link between energy resources and refineries, helping increase U.S. energy security and independence.
  • The dramatic production growth in the Permian Basin has and will continue to have a direct impact on the improvement of the state’s economy. Pipelines like Gray Oak are important for maintaining oil and gas jobs and jobs in related fields for decades into the future.
  • In addition to jobs, taxes paid by companies producing, transporting and processing oil from the region will continue to pay taxes to support state and local governments as well as schools and important infrastructure improvements.
  • According to a new report from IHS Markit, the Permian Basin has the potential to nearly double crude oil production by 2023. This projected increase would account for 60 percent of the world’s production growth during that period.
  • On a local level, the Gray Oak Pipeline will positively impact Texas residents by strengthening the global competitiveness of refineries and other oil processing companies located in communities like Corpus Christi, Sweeny and Freeport.

Why not transport by rail or highways?

  • Pipelines are the safest, most efficient way to transport crude oil, according to the U.S. Department of Transportation.
  • Pipelines operate 24 hours a day and reduce the number of over-the-road trucks carrying oil on local highways and streets.

Where is the Gray Oak Pipeline located? What communities are affected?

  • The Gray Oak Pipeline will span from West Texas to market centers in Corpus Christi, and ultimately to Sweeny/Freeport.
  • The proposed route will have origination stations constructed in Reeves, Loving, Winkler, and Crane counties in West Texas, as well as from locations in the Eagle Ford production area in South Texas.

Gray Oak will pass through the following counties:

1. Reeves 8. Crockett 15. Frio 22.Karnes
2. Loving 9. Schleicher 16. La Salle 23. Goliad
3. Winkler 10. Sutton 17. McMullen 24. Victoria
4. Ward 11. Edwards 18. Live Oak 25. Jackson
5. Crane 12. Kinney 19. San Patricio 26. Wharton
6. Upton 13. Maverick 20. Nueces 27. Matagorda
7. Reagan 14. Zavala 21. Bee 28. Brazoria