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Permian pipelines key to production growth

  • Monday, October 2, 2017
  • Posted By Meagan Wildfong

100217barrelblog Source: The Barrel Blog | October 2, 2017 | Ashok Dutta, Reporter

 

 

When Willie Chiang, chief executive officer of Plains All American, rose to address an audience at the Houston Petroleum Club in mid-September, his message was clear: crude production from the Permian Basin will continue to grow and timing will be a critical factor to build pipelines.

Delays will result in widening of price discounts for Permian crudes and prove to be counterproductive for producers, he noted.

 

Despite operators reducing breakevens in the Permian, they will always be wary of reducing exposure to wide variations in differentials.

 

Like in August 2014, Midland WTI averaged a $12.10/b discount to Cushing WTI primarily due to a lack of pipeline capacity, compared to a discount of 35 cents/b late last week, according to Platts data.

 

To finish The Barrel article, please follow this link.

 

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