Many US independents with large positions outside the Permian basin have lifted their 2018 output forecasts. But only a few are raising investment. Shale producers dominant in Texas’ Eagle Ford formation and the Bakken in North Dakota are not so exposed to pipeline constraints as peers focused on the Permian. Infrastructure expansion has failed to keep pace with the rapid output growth from the Permian, widening the discount on the region’s crude prices to over $10/bl to the WTI benchmark. The Permian is also facing a shortage of labour, sand and water, which is raising costs.
展开▼