Permian pressures

摘要

The anticipated slowdown in Permian basin production growth because of pipeline bottlenecks is having a marked impact on the markets. Infrastructure constraints are expected to persist for the next six to nine months, coinciding with the onset of the loss of Iranian crude exports. Output growth in the Permian in Texas and New Mexico has been a key driver of the rapid rise in US output in recent years - contributing to surging non-Opec supply. The basin will remain critical for US production growth in 2019 but the rapid pace is becoming increasingly difficult to sustain in the face of pipeline constraints. And any disappointments to growth expectations will affect production and export flows and render global oil supply and demand forecasts more vulnerable than usual to revisions.