A combination of new natural gas takeaway capacity out of the Permian, rising feedgas demand from LNG export terminals and stronger gas prices at the Waha Hub will support a steady increase in associated gas production. But an important question looms: Will there be enough gas processing capacity?
The long-anticipated return of Enterprise’s Midland to ECHO 2 Pipeline to crude service is underway, bringing 220 Mb/d online for the first time since the end of 2023. This coincides with Enterprise’s new NGL line, the Bahia Pipeline, which began operations in December.
The original Cactus Pipeline was a pioneer in moving large volumes of crude oil from the Permian and the Eagle Ford to the Corpus Christi area, which quickly became a leader in U.S. crude exports. Cactus II, an even longer and larger pipeline that came online in H2 2019, only added to Corpus Christi’s export prominence. But the competition with Permian-to-Houston pipelines is fiercer than ever and negotiated rates on pipelines to the Texas Gulf Coast are under pressure. In today’s RBN blog, we look at the Cactus I and Cactus II pipelines and their significance.
The build-out of the Permian’s midstream infrastructure over the past 10 years has created extraordinary opportunities for startup companies, most of them backed by private equity. Each of us could cite several examples of midstreamers that, with a combination of guile and grit, developed gathering systems, gas processing plants, pipelines and other infrastructure to serve the fast-growing needs of producers and shippers. In many cases, the assets they constructed were later sold — often at a hefty profit — to much larger firms. As we discuss in today’s RBN blog, even in the midst of sector consolidation, the entrepreneurial spirit of smaller Permian midstreamers continues.
The record $120 billion upstream M&A spending spree in 2024 focused on the consolidation of Permian Basin positions by the major U.S. publicly traded oil and gas companies. With crude oil prices stagnant in the $70-$80/bbl range, producers were driven to boost Tier 1 acreage and capture operational synergies to fund the generous shareholder returns demanded by their investor base. When the dust cleared at year-end, the larger E&Ps we track — plus supermajor ExxonMobil — closed or announced deals on acreage that generated about 1.5 MMboe/d of production, almost 25% of their 2023 Permian output. In today’s RBN blog, we’ll analyze what this unprecedented consolidation means for Permian production going forward.
As crude oil pipelines from the Permian to the Gulf Coast edge closer to full utilization, it’s becoming a challenge for producers and shippers alike. Amid this capacity crunch, converting Enterprise’s Midland to ECHO 2 (M2E-2) pipeline back to crude oil service can’t come quickly enough. In today’s RBN blog — the latest in our series on Permian crude oil pipelines — we discuss Enterprise’s crude oil footprint from West Texas to Houston.
Permian producers have enjoyed an abundance of outbound options since the pandemic, with egress capacity surpassing production. While a significant amount of capacity remains available, not all routes have proven equal in the eyes of the market, with Corpus Christi and Houston the most sought-after destinations for Permian crude. In today’s RBN blog, we’ll explore why ONEOK’s BridgeTex Pipeline is the only conduit serving the Houston market that still has room to take on additional volumes — although it appears to be quickly nearing full capacity.
Midland, TX, is the epicenter of the Permian Basin. As the largest crude oil hub in the region, it boasts about 20 MMbbl of crude oil storage and extensive downstream connectivity, with the ability to deliver to local refineries, Wichita Falls, Cushing, Nederland, Houston and even Corpus Christi (albeit indirectly). It’s also where Midland WTI pricing is assessed, shaping much of the broader oil market in the region and even around the world. In today’s RBN blog, we discuss why Midland is the center of it all.
Hundreds of miles separate the Permian Basin from the U.S. Gulf Coast, but in the Shale Era traversing that span has become increasingly important to Permian producers. Billions of dollars have been invested to expand capacity to move Permian production — crude, natural gas or NGLs — to the Gulf Coast to take advantage of surging export markets. In today’s RBN blog, we’ll focus our attention on EPIC Midstream and its EPIC Crude Pipeline, which has operated above its nameplate capacity for much of this year.
