A recent frenzy of pipeline building is easing, but more projects are still in the works to ensure rising crude supplies reach expanding export infrastructure. Inland US crude markets have levelled out much of their dislocation to global seaborne prices after a mammoth pipeline building programme that began to bear fruit in the middle of last year. Midstream frms have been bringing nearly 2mn b/d of transport capacity on stream in the Permian basin, with new lines entering service from August. Together with the expansion of existing lines, the extra takeaway capacity has helped bring prices at the Permian market hub of Midland to discounts of $2/bl to the Houston export price, after they dipped to $15/bl discounts in the frst half of last year (see graph).
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