Author Topic: West Texas oil production outgrowing pipeline capacity  (Read 1751 times)

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Offline thackney

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West Texas oil production outgrowing pipeline capacity
« on: April 03, 2017, 01:00:20 pm »
West Texas oil production outgrowing pipeline capacity
http://fuelfix.com/blog/2017/03/31/west-texas-oil-production-outgrowing-pipeline-capacity/
 March 31, 2017

Oil production in West Texas is about to outgrow pipeline capacity, a combination that knocked down crude prices in the region three years ago.

West Texas Intermediate crude at Midland, Texas, the heart of the Permian Basin, sank this month to the lowest level since September. It’s the weakest for this time of year since 2014, according to data compiled by Bloomberg. That year, the discount versus the same oil in Cushing, Oklahoma, the U.S. benchmark, plunged to $21 in August as the shale boom flooded the region with oil.

Permian output is expected to rise to 2.65 million barrels a day in December, said William Foiles, an oil analyst with Bloomberg Intelligence. In comparison, takeaway capacity in the region may only reach 2.54 million barrels a day by end of this year, according to Bloomberg Intelligence pipeline analyst Michael Kay.

While Midland prices probably won’t reach 2014 levels, they could fall to $5 a barrel below WTI at Cushing later this year, “because of tightness in takeaway capacity in the Permian,” Paul Grigel, Denver-based analyst at Macquarie Capital USA Inc., said by phone.

Pipeline operators are looking to increase capacity on existing lines to meet the increased output. A plan by Enterprise Products Partners, LP to start up a new Midland to Sealy, Texas, pipeline is expected to begin service in the fourth quarter, but its full capacity of 450,000 barrels a day would only be available in early 2018, Kay said, referring to an Enterprise presentation....
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Offline Smokin Joe

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Re: West Texas oil production outgrowing pipeline capacity
« Reply #1 on: April 03, 2017, 01:14:21 pm »
DAPL should be going on line in mid April, if the ecojackasses will quit damaging the line.

Trains work as a stopgap (provided the rails are good), and maybe Warren Buffet could use the money.... :shrug:
How God must weep at humans' folly! Stand fast! God knows what he is doing!
Seventeen Techniques for Truth Suppression

Of all tyrannies, a tyranny sincerely exercised for the good of its victims may be the most oppressive. It would be better to live under robber barons than under omnipotent moral busybodies. The robber baron's cruelty may sometimes sleep, his cupidity may at some point be satiated; but those who torment us for our own good will torment us without end for they do so with the approval of their own conscience.

C S Lewis

Offline IsailedawayfromFR

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Re: West Texas oil production outgrowing pipeline capacity
« Reply #2 on: April 03, 2017, 03:04:31 pm »
This New NGL P/l just started operation and runs thru my East Texas farm.
https://rbnenergy.com/node/4286
Needing more p/ls is a good thing
No punishment, in my opinion, is too great, for the man who can build his greatness upon his country's ruin~  George Washington

Offline thackney

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Re: West Texas oil production outgrowing pipeline capacity
« Reply #3 on: April 03, 2017, 03:28:36 pm »
This New NGL P/l just started operation and runs thru my East Texas farm.
https://rbnenergy.com/node/4286
Needing more p/ls is a good thing

Ever use this site to follow it?

https://pvnpms.phmsa.dot.gov/PublicViewer/
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Offline Smokin Joe

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How God must weep at humans' folly! Stand fast! God knows what he is doing!
Seventeen Techniques for Truth Suppression

Of all tyrannies, a tyranny sincerely exercised for the good of its victims may be the most oppressive. It would be better to live under robber barons than under omnipotent moral busybodies. The robber baron's cruelty may sometimes sleep, his cupidity may at some point be satiated; but those who torment us for our own good will torment us without end for they do so with the approval of their own conscience.

C S Lewis

Offline thackney

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Re: West Texas oil production outgrowing pipeline capacity
« Reply #5 on: April 03, 2017, 04:45:07 pm »
Neat tool, thanks!

I wished it zoomed in more, but can understand why that is not needed for the public.  It does allow you to identify carrier and product.
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Offline Smokin Joe

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Re: West Texas oil production outgrowing pipeline capacity
« Reply #6 on: April 03, 2017, 05:15:53 pm »
I wished it zoomed in more, but can understand why that is not needed for the public.  It does allow you to identify carrier and product.
While being able to see what is where relative to your property or work area, the fine details are best left up to the people who need to know. In the end, the line locators will come out and mark what needs to be marked, if need be.

I had been asked why in geological reports I didn't waste two or three pages detailing how to get to the drill site. I simply said that I gave the legal location description and lat/long coordinates, which should be sufficient for mapping purposes. People who need to know how to get there (crude oil haulers, contractors, and such) will get that information from other sources anyway, and I wasn't going to give some environmental terrorist street directions.
Now, with the pipeline 'protests' and damage, I am looking more prophetic.
How God must weep at humans' folly! Stand fast! God knows what he is doing!
Seventeen Techniques for Truth Suppression

Of all tyrannies, a tyranny sincerely exercised for the good of its victims may be the most oppressive. It would be better to live under robber barons than under omnipotent moral busybodies. The robber baron's cruelty may sometimes sleep, his cupidity may at some point be satiated; but those who torment us for our own good will torment us without end for they do so with the approval of their own conscience.

C S Lewis

Offline IsailedawayfromFR

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Re: West Texas oil production outgrowing pipeline capacity
« Reply #7 on: April 03, 2017, 11:21:58 pm »
Ever use this site to follow it?

https://pvnpms.phmsa.dot.gov/PublicViewer/
Very nice, but it is not up-to-date on the new Lonestar NGL line that transverses my property.
No punishment, in my opinion, is too great, for the man who can build his greatness upon his country's ruin~  George Washington

Offline MajorClay

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Re: West Texas oil production outgrowing pipeline capacity
« Reply #8 on: April 04, 2017, 06:31:54 pm »
Rut Roh