Texas Oil Pipelines Experience Surge in Demand Amid Global Conflict

US Crude Exports Soar Amid Iran War-Driven Demand

Texas oil pipelines are running above designed capacity in some cases, as overseas demand for US crude to replace cargoes stranded by the Iran war continues to surge. Pipeline flows from the Permian Basin to Gulf Coast export terminals have reached an all-time high, according to research firm Wood Mackenzie Ltd.

Last week, the volume of crude pumped through those networks rose by 1.5% to a daily average of 5.27 million barrels. On one system that feeds oil to Corpus Christi exporters, the pipes have been operating at 102% of nameplate capacity, indicating that shippers are pushing the bounds to deliver as much oil as possible.

The strong export demand has led to a significant draw-down on domestic crude stockpiles. The amount of oil held in storage at the key US hub in Cushing, Oklahoma, shrank by 1.7 million barrels in the most recent government data, the steepest drop since the start of 2025.

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US exports of crude and refined products such as gasoline have never been higher, and along the Gulf Coast, outbound shipments of oil are set to touch a new record in May. The unprecedented foreign pull on US supplies could start to pinch the homegrown energy landscape as domestic fuelmakers increasingly find themselves competing with overseas refiners for barrels.

For consumers, this supply scenario couldn't come at a worse time, given the imminent approach of the summer driving season. Oil flows along all major long-haul systems are essentially full.