NTOG/Permian Basin/Oil10 May 2018 07:06
https://www.ft.com/content/fac73006-53c9-11e8-b3ee-41e0209208ec
''Oil produced in the Permian Basin of Texas and New Mexico, the white-hot centre of the shale boom, is becoming trapped with no easy route to a refinery or an export terminal.
The hectic pace of drilling and the productivity gains have boosted output from the Permian Basin by 60 per cent in the past two years, to 3.2m barrels a day. The problem is that the pace of the boom is straining the ability of the region to keep up, with workers, with equipment, and with pipelines.''
''The favourable economics for shale producers created by higher prices and lower costs mean that US oil output is already rising fast, and is expected to average about 1.4m barrels a day more in 2018 than in 2017.
And in the US oil industry�s recovery since May 2016, the Permian Basin has seen the strongest rebound in activity, with the number of active oil rigs tripling in the past two years. It now has 55 per cent of the oil rigs running in the country.''
''The real change will come next year, though, when three large new pipelines � Cactus II, Gray Oak and Epic � are scheduled to enter service, with a combined capacity of about 1.9m b/d.
When that happens, US production should be able to leap higher again, taking some of the heat out of oil prices. Until then, the Trump administration will need to keep a wary eye on what its Iran policy means for oil consumers.''
So 3 major pipelines planned for next year!..........GLA:)