Tom Mazanec wrote:Permian basin petering out?
https://oilprice.com/Energy/Energy-Gene ... n-End.html
Permian production has only just started. Many things are coming into a wonderful alignment to make sure we are all prepared for an influx of Permian crude
Pipeline capacity is rising by about 4 million barrels/day by 2021 (all approved and most under construction)
Export terminals on the Gulf Coast are being built at an excessive pace to support this inevitable inundation of the light/sweet crude
Producers announced major plans to increase production. even if some pure-play producers don't hit their targets (due to issues such as raising capital), you have Exxon and Chevron deploying its framework to pump an additional 2 million barrels/day ALONE by 2023-25
The Permian stars are aligning, and when these pipes start coming online periodically beginning August/September 2019, OPEC will be deemed useless, and we could see a prolonged period of crude price weakness