Midstream infrastructure projects in the Permian Basin are catching up to production.
Pipeline construction in the Permian Basin is finally catching up to the play's production. (Source: Shutterstock)
In the past decade, production growth has been so strong that the midstream has had trouble keeping pace with transportation capacity out of the play to end-use markets and processing hubs. Consider that production out of the Permian nearly quadrupled from 2012 to 2019 and continues to grow and it’s easy to see how challenged midstream operators have been.
However, midstream infrastructure capacity is finally starting to catch up to production out of the Permian Basin. Over the past few weeks, two large-scale takeaway pipelines were brought online with quite a few more oil, gas and liquids infrastructure slated to come online over the next few years.