Permian crude oil markets are getting interesting again, with triple-digit prices making daily headlines and boosting producers’ cash flows. But there have been few parties in the Permian oil midstream space. There, excess long-haul capacity has been the story for some time, a situation that became more pronounced when Wink-to-Webster (W2W) — the last of the new greenfield pipelines to the Texas Gulf Coast — started up earlier this year. There’s so much capacity in place that price spreads have remained tight and competition for barrels has been fierce. That said, there’s a positive story flying under the radar in the Permian oil markets. One of the new pipelines that started up out of the Permian in 2019 is now full. That may surprise some folks, kind of like when the Texas A&M Aggies pulled in the #1 football recruiting class in the country earlier this year. While Alabama’s coach is apparently still trying to swallow that news, you’re not likely to find yourself doubting the ability of a newbuild to get full in today’s competitive environment. At least you won’t after we tell you the story of the EPIC Crude Pipeline, which we do in today’s RBN blog.
Crude oil markets are a favorite focus of ours here at RBN and we’ve written extensively on the Permian over the years, both in our daily blog and in our weekly Crude Oil Permian publication. If you follow along, you’ll know that Permian crude production currently sits near 5.2 MMb/d and is expected to grow by about 700 Mb/d during 2022, an expectation that has crept up slightly since our 2022 Permian Outlook blog was written back in January. Despite all that growth in Permian oil production, aggregate pipeline capacity from the basin still far outstrips available barrels. Figure 1 below shows our current outlook for all the pipelines leaving the Permian and heading toward the Houston and Corpus Christi markets. As you can see, though there is plenty of production growth to come, spare capacity is expected to persist for some time.
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About the song
“Runnin’ Down a Dream” was written by Tom Petty, Mike Campbell and Jeff Lynne. It appears on Tom Petty’s first solo album, Full Moon Fever. It was released as a single in July 1989 and went to #1 on the Billboard Album Rock Tracks chart and #23 on the Billboard Hot 100. “Runnin’ Down a Dream” was also used in the video game “Grand Theft Auto: San Andreas” and has been used as the theme song for NASCAR on NBC.
Full Moon Fever was recorded at M.C. Studios (Mike Campbell’s garage studio), Sound City Studios, Rumbo Studios, Sunset Sound Studios, Devonshire Studios and Conway Studios in Los Angeles. It was produced by Tom Petty, Mike Campbell and Jeff Lynne, and was released on April 24, 1989. Tom Petty said Full Moon Fever was the most enjoyable record of his career. It reached #3 on the U.S. Billboard 200 Albums chart and went on to go platinum five times. The personnel on the record were: Tom Petty (lead and backing vocals, guitars, keyboards, and tambourine), Mike Campbell (lead guitar, bass, mandolin, slide guitar, Dobro, and keyboards), Jeff Lynne (bass, guitar, piano, synth, keyboards and backing vocals), and Phil Jones (drum and percussion). George Harrison, Jim Keltner, Benmont Tench, Howie Epstein, and Roy Orbison made guest appearances on the album.
Tom Petty was an American singer-songwriter, multi-instrumentalist and record producer. He was best known as the lead singer of Tom Petty & the Heartbreakers, the band that formed in 1976 from the ashes of his Gainesville, FL, band, Mudcrutch. He was also a co-founder of the Traveling Wilburys. During his career, he released three solo albums, 13 with the Heartbreakers, two with Mudcrutch, and two with the Traveling Wilburys. In 1996, Tom Petty received the UCLA Gershwin Award for Lifetime Musical Achievement and an ASCAP Golden Note Award. Tom Petty & the Heartbreakers received a star on the Hollywood Walk of Fame in 1999 and were inducted into the Rock and Roll Hall of Fame in 2001. They also received three Grammy Awards, three MTV Video Music Awards, and a Billboard Magazine Century Award. Tom Petty died at the age of 66 in Santa Monica, CA, in October 2017. He has sold over 30 million records worldwide.
Comments
Another great blog article from the RBN crew, thanks!
There was brief mention of EPIC's pipeline intended for NGL service, before starting service on the 600 Mb/d pipeline. What do current NGL volumes look like?