The Trump Administration touts oil hubs in the Gulf of Mexico, but no one is building them

Core Insights - The Trump administration announced the licensing of the Texas GulfLink project, claiming it signifies a restoration of U.S. maritime dominance and a new era for American energy [1][15] - However, the developer, Sentinel Midstream, did not comment on the announcement, indicating a disconnect in the industry regarding the viability of such projects [2] Industry Overview - The initial rush to build deepwater terminals has stalled, with major companies like Phillips 66 and Chevron withdrawing from projects due to insufficient crude demand and customer support [2][3] - Current U.S. oil output is near all-time highs, yet the lack of demand makes new terminal projects unjustifiable in the short term [3] Project Status - The Texas GulfLink project is now licensed, but there is uncertainty about its progression, as the developer has not indicated plans to move forward [13] - Other projects, such as Energy Transfer's Blue Marlin and Phillips 66's Bluewater terminal, remain unlicensed and have not seen recent updates from their respective companies [13] Market Dynamics - The shift in focus for companies like Chevron from exporting crude oil to refining and exporting higher-value petroleum products has impacted the demand for deepwater terminals [9][12] - The geopolitical landscape, particularly the shift of U.S. oil exports to Europe due to the Ukraine conflict, has further reduced the need for large tankers and deepwater facilities [12] Regulatory Environment - The permitting process for deepwater terminals has been slow, with the Biden administration not fast-tracking approvals, contributing to project delays [8][11] - Phillips 66 is currently facing emissions issues with its air permit application, which is further complicating the progress of its terminal project [14]