Tag Archives: permian

New Pipeline Infrastructure Should Accommodate Expected Rise in Permian Oil Production

As crude oil production in the Permian Basin of western Texas and eastern New Mexico has increased, pipeline infrastructure has also increased to deliver this crude oil to demand centers on the U.S. Gulf Coast. One indicator of a potential shortfall in available takeaway capacity in the Permian is a negative spread between the price of West Texas Intermediate (WTI) crude oil at Midland, Texas, and the price of WTI at Cushing, Oklahoma. Going forward, the Midland versus Cushing discount, which recently widened to more than $1 per barrel (b), is unlikely to be either […]