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The Trans Panama oil pipeline is going to be reactivated. However, oil will now pass from Atlantic to Pacific requiring retooling to reverse the direction of flow. The Trans Panama oil pipeline was originally built to help move Alaskan North Slope oil to gulf coast refineries. Now the pipeline will help move African crude and other Atlantic Basin oil to Pacific Basin refineries.

The Trans Panama pipeline has been mothballed since 1996 due to falling Alaskan North Slope production.

According to a press release by Tesoro Corporation, an independent refiner and marketer of oil products, Tesoro has signed an agreement with Petroterminal de Panama (PTP) to ship 107,000 barrels a day through the Trans Panama pipeline for seven years. This report comes on top of previous reports that British Petroleum “had agreed to acquire 5 million barrels of storage from PTP and to ship 65,000 barrels per day of crude oil on the pipeline for seven years once the reversal is completed.”

Crude Oil and Panama Real Estate Investment

Panama has been a transfer point for goods moving from ocean to ocean from before the time of Columbus. The Panama Canal was built here because Panama is the narrowest point in the Americas and because it is free of major earthquakes. Much of the value of Panama real estate is due to Panama’s unique location and developed infrastructure.

Panama property investment has had a good ten year run ever since the USA turned over the running of the Panama Canal to the Panama Canal Authority. The perception of Panama as a US colony has faded and foreign investment in Panama is the highest, per capita, in all of Latin America. Panama’s gross domestic product has been growing at and around 10% a year for several years. Even with the world economic downturn Panama is expected to grow its economy by about 6% in 2009.

Although purchases of real estate by North America buyers may slow down due to credit problems in North America Panama expects to see more visitors and home buyers from Europe in the next few years.

The Trans Panama oil pipeline project is an example of Panama’s first world infrastructure and it ability to take repeated advantage of its unique geography. Five percent of world trade passes through the Panama Canal. That includes 40% of Latin American container shipping. Panama derives its prosperity from a wide range of sources and activities. As such Panama is expected to weather the world current financial storm and grow in the process.

Panama real estate investment will continue to thrive in Panama’s political and business environment. With the more expensive Panama real estate taking a pause due to North American credit concerns wise investors will take advantage of a historic opportunity. Targeted real estate investment with the advice of competent and trustworthy Panama companies such as ABPanama will reap rewards for years to come.

If you are interested in real estate investment in Panama and our take on trends in Panama’s real estate market contact us at ABPanama. We do business throughout Panama and have over 23 years experience managing real estate investment portfolios.