Permian Basin still needs additional pipeline investment

摘要

While concern about overbuild of pipeline capacity in the oil-rich Permian Basin exists in the near future,the growing supply of crude from the hottest U.S.shale basin will make it necessary for extra takeaway capacity by the end of the next decade,according to research from Wood Mackenzie.Wood Mackenzie's research is forecasting more pipeline investment will be needed before the 2030s hit because up to 500,000 additional bbl/d of oil will need to be transported to market to ease the bottlenecking that has become synonymous with the Permian Basin.As a result,midstream companies should get ready to build at least one more major pipeline out of the Permian to Gulf Coast markets,said John Coleman,Wood Mackenzie's principal analyst of North America crude markets.”The narrative right now is focused very much on the short term,there will be excess capacity,”Coleman told HartEnergy.com.”What we want to do is highlight that we agree with that in the short term.But longer term,looking beyond the next five years,we do expect growth to continue moving forward with that driving the need for either one new build from the Permian to the Gulf Coast market or expansion probably across multiple systems.”