October 25, 2024
New Permian oil pipelines unlikely to be built, say top operators
By Arathy Somasekhar
Top executives from two major U.S. pipeline companies (Jim Teague with Enterprise Products and Willie Chiang with Plains All America) announced that they won’t build new crude oil pipelines from the Permian shale field in Texas due to slow volume growth and construction challenges. Instead, companies are focusing on expanding or optimizing existing pipelines. Enterprise Products Partners and Plains All American Pipeline are exploring ways to boost capacity without new builds, while Enbridge plans to increase capacity on its Gray Oak pipeline. EPIC Consolidated Operations may expand its pipeline to South Texas.
Read the full article here: New Permian oil pipelines unlikely to be built, say top operators | Reuters
Permian oil producers are cautious with spending, keeping output steady even if oil prices rise, aiming to avoid price drops from oversupply. Enterprise’s proposed offshore oil export project, SPOT, faces regulatory and commercial delays. The shifting global oil market, including sanctions on Russian oil, has impacted demand for new U.S. export projects, raising questions about SPOT's viability.
