La Oil Port In Great Shape Despite Recession

About 1 million barrels of foreign crude moves each day through LOOP, or roughly 10 percent of all petroleum imported into the United States.

The company that is spearheading one of the biggest refinery expansions ever undertaken credits LOOP for at least part of the decision to launch the $3.4 billion project in Garyville.

Marathon spokesman Robert Calmus said LOOP will provide easy access to oil for the Garyville refinery, which by year's end should be converted from the nation's 18th-biggest refinery to the country's fourth-largest.

"Because Garyville is so close to the Gulf of Mexico, that refinery probably gets more crude from LOOP than our other refineries," Calmus said, estimating that 75 percent of the plant's crude comes through LOOP.

Gulf of Mexico production may well be LOOP's next big market. Although domestic oil consumption is not expected to decline by 2030, foreign imports should fall somewhat as production in the Gulf unearths more domestic oil, according to the federal Energy Information Administration.

LOOP saw shipments slide by roughly 10 percent this year, after demand for oil retracted under the weight of the recession. But Rollins expects shipments to rebound, and even grow, by early next year.