Matterhorn Express Natural Gas Pipeline -- Permian -- May 20, 2022

PGA: as it stands now, Tiger Woods (+4) will miss the cut by two strokes. Link here. He tees off at 1:36 p.m. today, along with first round leader Rory McIlroy (-5) and Jason Spieth (+2).

Permian: private E&P push Permian Delaware output to record heights in 2022, link to Rigzone.  

Total hydrocarbon production in the Permian Delaware Basin, the top-producing play in the Permian, will hit a record 5.7 million barrels of oil equivalent per day average in 2022.

Spurred on by high oil prices and appealing well economics, total production is set to grow by around 990,000 boepd, almost half of which – 433,000 boepd – is new oil production.

Investments in the basin are also expected to jump, surging more than 40 percent from 2021 levels to reach $25.7 billion this year. A significant contributor to this growth is the majors – ExxonMobil, Chevron, BP, and ConocoPhillips – who last year cut Permian Delaware investments by 33 percent vs. 2020. 

OXY? Link here.

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Back to the Bakken

Active rigs: 39 or thereabouts.

WTI: $111.80

RBN Energy: new Permian gas pipeline Matterhorn Express takes FID. 

The race is heating up for building natural gas pipeline takeaway capacity out of the Permian. Associated gas production from the crude-focused basin is at record highs this month and gaining momentum, which means that without additional pipeline capacity, the Permian is headed for serious pipeline constraints — and potentially negative pricing — by late this year or early next, which would, in turn, limit crude oil production growth there. Midstreamers are jockeying for the pole position to move surplus gas from the increasingly constrained basin to LNG export markets along the Gulf Coast. One of the contenders, Matterhorn Express Pipeline (MXP), a joint venture (JV) between WhiteWater, EnLink Midstream Partners, Devon Energy and MPLX, announced its final investment decision (FID) late yesterday. In today’s RBN blog, we provide new details on the greenfield project.

In a blog a couple of weeks ago, we laid out what we knew about the field of gas pipeline projects entering this summer’s race to increase egress out of the Permian. To recap, at the time there were three greenfield projects percolating: Kinder Morgan’s Permian Pass, which is assumed to be a 2.0-Bcf/d pipeline that would terminate near the Katy, TX, area; Energy Transfer’s Warrior Pipeline, which would move 1.5-2 Bcf/d of gas east from the Permian toward the Dallas area, where it would then access existing pipes to the Gulf Coast; and the focus of today’s blog, Matterhorn Express Pipeline (MXP), which would head east out of the basin toward Katy.