Plains Expects Midstream Pressures to Continue

摘要

Plains All American sees US crude production returning to growth, but at a relatively slow pace, a dynamic that requires more efficiency and possibly rationalization on the part of midstream firms. Plains personnel explained that despite the recent rally in oil prices, the upstream response in the US is likely to be muted (OD Feb.9’21). “To some respect, the current prices are popped up by available production that’s off the market by Opec” and its allies’ supply quotas, said Plains’ Senior Vice President Jeremy Goebel on Tuesday during a call to discuss the company’s fourth-quarter earnings. “Everyone on the production side is being cautious with respect to adding incremental production until demand returns and then the Opec barrels come back to market. So once you see those two things happen, I think you’ll see a more constructive environment for activity.”