Panama Canal Expansion Opens Opportunities in Eagle Ford

Author: USGI
Date Posted: July 1, 2016 Read time: 1 min

Officials in Panama inaugurated the newly expanded and improved Panama Canal this week, reports Sergio Chapa of the San Antonio Business Journal.

Officials in Panama inaugurated the newly expanded and improved Panama Canal this week, reports Sergio Chapa of the San Antonio Business Journal. The expansion offers new opportunities for oil and natural gas companies located in the Eagle Ford to export their products to lucrative markets in Asia.

The Panama Canal is now accommodating of wider and longer ships with a draft of up to 50 feet, according to the U.S. Energy Information Administration. Juan Leon, Investment Analyst at U.S. Global, weighs in on the expansion, noting that it is expected to boost Texas-based exports, but that Texas ports will need to deepen their channels to accommodate the “Panamax” tankers. They will now require a depth of at least 50 feet.

 

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