RIO's Magic: Lessons learned in the Bakken allow Rangeland Energy to think big as it completes its new Delaware Basin terminal

September 2014
MidstreamBusiness.com

The magic of an independent, equity-backed midstream company usually lies in its ability to move quickly to connect upstream players with access to markets. But it is rare when midstream players themselves take on a project that is as large as creating a brand new regional market hub, designed to provide parties with as many commercial options as possible and plenty of liquidity to transact business.

Yet that is what Rangeland Energy LLC is undertaking with its Rangeland Integrated Oil System, or RIO System, in the Permian’s Delaware Basin. Under construction is an integrated system of terminals and pipe designed to aggregate crude and then transport it either by pipe to Midland, Texas, and then typically on to the Gulf Coast or the Cushing, Okla., trading hub—or take it by rail to western markets, primarily California and the Pacific Northwest.