June 1, 2018 – Dallas News
'It's not a quick fix': Demand grows, but Permian Basin drillers are stuck waiting on new pipelines
By: Jeff Mosier
Success is catching up with the Permian Basin, the prolific U.S. oilfield that's out-producing many Middle Eastern nations.
With oil prices climbing, the basin has become an expensive bottleneck as drillers try to pump more crude and natural gas than what pipelines can send to refineries, storage tanks and ports.
Billions of dollars worth of new and expanded pipelines are in the works, but it could take years before the oil-rich formation in West Texas sees sustained relief. And the inability to produce more oil and gas from the Permian region could help push up global oil prices.…
Read the full article here: https://www.dallasnews.com/business/energy/2018/06/01/permian-basin-drillers-waiting-new-pipelines-going-long-wait
… John Zanner, lead crude oil analyst at Houston-based RBN Energy, said the spread had shrunk previously when the new Midland-to-Sealy pipeline — 540,000 barrels per day — opened in April.
"But then there's so much production growth in West Texas now that almost as soon as that happened, it [the price spread] blew out again," Zanner said…
