The Briefing Room
General Category => Science, Technology and Knowledge => Energy => Topic started by: thackney on September 30, 2019, 12:29:29 pm
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The Pipeline the Permian Basin Has Been Waiting For Is Finally Finished
https://www.fool.com/investing/2019/09/25/the-pipeline-the-permian-basin-has-been-waiting-fo.aspx (https://www.fool.com/investing/2019/09/25/the-pipeline-the-permian-basin-has-been-waiting-fo.aspx)
Sep 25, 2019
Energy companies have drilled so many new wells into the Permian Basin in recent years that it has unleashed a torrent of oil and gas supplies. This gusher has overwhelmed the region's infrastructure, which pushed down prices.
Natural gas has been especially hard hit, with prices at two regional hubs falling into negative territory earlier this year. Because of that, many producers chose to flare their natural gas output as opposed to selling it at a loss. At one point, they were burning off enough gas to power every home in the state of Texas.
Pipeline companies like Kinder Morgan (NYSE:KMI), however, have been racing to solve this problem by building new infrastructure. The company recently brought the much-needed Gulf Coast Express Pipeline (GCX) online slightly ahead of schedule. That project will provide a welcome boost for oil and gas producers in the region as well as its developers.
Kinder Morgan announced that its GCX pipeline began full commercial service this week, which is slightly ahead of the initial view that it would start up in October. As a result, the pipeline will now be able to transport up to 2.0 billion cubic feet per day (Bcf/d) of gas from the Permian to Texas Gulf Coast markets. That's a significant amount of new capacity for a region that currently produces 10 Bcf/d, though a small fraction of the need given that output is on track to top 21 Bcf/d by 2025....
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(https://i2.wp.com/www.oilandgas360.com/wp-content/uploads/2017/12/Gulf-Coast-Express-Pipeline.png)
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A whole lot better than this.
They can't give it away: Texas natural gas at all-time negative lows
https://www.reuters.com/article/us-natgas-waha-pipelines/some-texas-drillers-cant-give-away-natgas-with-prices-at-negative-all-time-lows-idUSKCN1RF1L0?il=0 (https://www.reuters.com/article/us-natgas-waha-pipelines/some-texas-drillers-cant-give-away-natgas-with-prices-at-negative-all-time-lows-idUSKCN1RF1L0?il=0)