Will New Pipelines Be Enough To Handle The Permian Boom?

10 May 2017   Pipelines, Shale Oil

As production in the Permian Basin continues to increase, the accompanying infrastructure has struggled to keep up. Expansions to pipeline capacity are needed to handle the heavier flow, as more investment is pumped into the Permian and new production comes on line. That’s got a host of Texas-based Permian players excited, as new pipeline projects are launched, existing lines are expanded and new acquisitions bring fresh capital into midstream ventures. According to the EIA , the rise in Permian output is expected to add 420,000 bpd by the end of 2017. Permian production in April 2017 was measured at 2.3 million bpd according to the Drilling Productivity Report , an increase of 300,000 bpd from last year. But existing pipelines can’t quite handle the load, and this has thrown spot prices off-kilter. WTI Midland, a local hub for the Permian, boasts a significant discount compared to WTI Cushing, though […]

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