Making America Great -- The Permian -- July 9, 2019

All last week we were inundated with stories coming out of Saudi Arabia and Russia that the two would simply out-wait the US. It looks like the wait will be quite awhile.

This story over at Rigzone is really quite remarkable: how fast the Permian is growing and how much more infrastructure is needed.

Here is Wood Mackenzie's take:

• the takeaway capacity in the Permian is way behind production potential of the Permian
• expect another wave of pipeline construction by the end of the decade (are you listening Saudi Arabia, Russia?)
• "as production growth expands well into the 2030s, US Gulf Coast-bound pipeline capacity will tighten -- repeat -- well into the 2030s, pipeline capacity will tighten
• by the mid-2030s, Permian pipeline utilization will exceed 92% in the absence of further investment
• a moderate overbuild will occur early next decade
• by the end of 2022, approximately 4 million bopd of new capacity will be added
• repeat:  by the end of 2022, approximately 4 million bopd of new capacity will be added; that's literally around the corner; no state lines to cross; no international issues; no federal government interference; it's all Texas, baby
• this 4-million-bbl build assumes seven (7) proposals for new Permian pipelines
• two to three years of overbuild but production will then catch up
• "We are in the midst of one of the largest crude infrastructure investment booms in US history, with much of the investment focused on the Permian basin. As massive as this current investment wave is, we don't think the story is yet finished."
• even after this build, Wood Mackenzie anticipates another all for up to 500,000 bpd for the Permian, during the middle to latter half of the next decade

All that talk by the Saudi energy minister that the kingdom will simply out-wait the US is simply that: talk.

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Newfield To Divest Its Natural Gas Assets in Oklahoma's Arkoma Basin

Story here.

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Polling? More Fake "Science"?

How accurate can polls be when, for Bernie Sanders:

• The Economist: 9%
• all other polls: 13% (Quinnipiac) to 19% (Politico) for Sanders

Yes, the dates of the polls may be key, but still ....

Link here.

At 9%, he's just one of the pack well behind Biden; at 19%, he's a contender.

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Flashback

Posted elsewhere on the blog earlier, but definitely worth re-posting: https://www.zerohedge.com/news/2016-11-10/trumps-geographic-landslide.