The importance of waterborne delivery of crude oil, whether of foreign import or redistributed domestic, has become increasingly evident. Even with a stabilization of oil imports as mandated by the 1985 import ceiling of 8.5 million bbl/day or a decline in foreign imports, the redistribution of domestic oil from noncontiguous areas and territories, such as the Valdez port of the Alaskan oil fields, will most likely continue to increase. In addition, the ability of Gulf ports to process crude oil in a more cost-efficient manner, due to their extensive infrastructural capacity, will continue to attract foreign and redistributed domestic oil. In response to the increasing value of crude oil, cost-efficiency is necessary in every link of the shipping, distribution, redistribution, and transfer process of delivery. This paper, which focuses on one particular link in the process, has two primary objectives:(a) to review trends in lightering of crude oil from very large crude carriers by small tankers or lightering vessels off the Texas coast and investigate the characteristics of lightering operations based on present and projected conditions, and (b) to study and evaluate costs and environmental issues associated with lightering and two other options--an offshore deepwater port and an industry-proposed method of crude oil transfer. A brief review of waterborne crude oil delivery to the Texas Gulf Coast, a description of lightering operations, and a lightering model analysis with scenario applications are presented in pursuit of the first objective. The cost of transportation and adverse environmental impacts for each option are summarized in connection with the second objective.(Authors)