Valero Files To Create a Logistics MLP – Valero Energy Partners

Logistics MLPs Trade At Multiples of 3-5 Times More Than Refineries
Valero Logistics Growth Investments

Valero Logistics Growth Investments | Click to Enlarge

Valero has filed a registration statement with the SEC for the initial public offering of Valero Energy Partners (VLP).

VLP will serve as a vehicle for dropping down (selling) logistics assets from Valero. Logistics assets include everything that helps Valero delivery quality crude to its refineries: pipelines, rail cars, rail unloading, barges, ships, docks, tanks, etc. [Read more…]

Corrosion Control in the Eagle Ford Shale

Corrosion control is always a factor in oilfield work.  Above-ground tanks, pipelines, and all manners of equipment suffer from corrosion, both internal and external in nature.  The farther south and west one moves across the Eagle Ford play, the more two interesting physical facts come to dominate external corrosion control needs.

Maverick, Dimmit, Zavala, Webb, La Salle, McMullen, Frio, Atascosa, Live Oak and Bee Counties have shallow soils which often contain large concentrations of chloride ion.  This comes from salt deposited when ancient ocean shorelines ranged across the region.  High chloride ion content causes aggressive corrosion rates on unprotected steel.  Just as importantly, the sodium and chloride ions, often found with other ions as well, cause the soil’s electrical resistivity to be very low.  The low electrical resistance means high corrosion current flows, which again accelerates attack on unprotected steel.  Pipelines are buried in this soil.  Tanks are set on it. [Read more…]

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