March 2018, Vol. 245, No. 3


Operators Race to Build Pipelines as Permian Nears Takeaway Capacity

Permian Basin oil production will exceed takeaway capacity by mid-2018 and likely result in heavy discounting of Permian crude until enough pipeline capacity is added to handle the soaring volume, analysts predict. Increasing constraints and projected output have triggered a race to build or expand pipelines to deliver Permian crude to Gulf Coast refineries and export terminals. At least 2.4 MMbpd of potential new Permian oil pipeline capacity has been proposed by a half-dozen operators, and those who have progressed to open season have reported strong customer interest.  “The extent to which this pipeline congestion materializes will depend on how much production increases, and anybody

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