Permian faces pipeline crunch
The west Texas oil and gas play could see growth crimped if major infrastructure projects aren’t completed in time
The Permian tight oil field is growing fast—maybe too fast. With oil and gas output surging from the west Texas superbasin at a more rapid rate than expected this year, producers increasingly fear pipeline builders won't be able to keep up with output. This could cause costly bottlenecks and even throttle growth. All signs point to continued strong production growth from the Permian. Output jumped from 2.62m barrels a day last September to 3.16m b/d in April—an average of more than 80,000 b/d per month, according to data from the Energy Information Administration. The upward rig count trend implies yet more is to come. Drillers added 44 new rigs across the Permian in just the first three mon
Also in this section
10 December 2024
Sector at economic and strategic crossroads, but clear path ahead for midstream additions
30 November 2024
Decades of turmoil have left Iraq’s vast energy potential underutilised, but renewed investment and strategic reforms are transforming it into a key player in the region
29 November 2024
The country's fifth and sixth oil and gas bid rounds have attracted a range of new players with gas as well as oil ambitions—and there’s a seismic shift in the contracting process
28 November 2024
Iraq is charting a new path for its indigenous resources and its youth, hoping to electrify the future with a mix of reforms and modernisation to fuel growth
