Active rigs:
$46.40 | 5/10/2017 | 05/10/2016 | 05/10/2015 | 05/10/2014 | 05/10/2013 |
---|---|---|---|---|---|
Active Rigs | 50 | 28 | 84 | 192 | 184 |
RBN Energy: midstream companies struggle to keep pace with Permian growth.
Permian crude oil production and pipeline takeaway capacity out of the region are in a horse race —it’s a close one too, and the stakes are high. Twice in the past few years, Permian production growth has outpaced the midstream sector’s ability to transport crude to market, resulting in negative price differentials that cost many producers big-time.
Now, thanks to increased drilling activity and producers’ heightened ability to wring more out of the play’s multistack formations, Permian production is expected to rise by at least another 1.5 million barrels/day (MMb/d) by 2022 —a 60%-plus gain over five years —raising the threat of another round of major price hits, maybe as soon as later this year. Today we continue a blog series on the challenges posed by rapid production gains in the hottest U.S. shale play.
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