Report: Permian Basin Still Needs Additional Pipeline Investment
A Wood Mackenzie analyst sees another pipeline bottleneck facing oil producers in the Permian Basin by the end of the next decade.
Permian Basin oil and gas pipeline construction. (Source: Shutterstock.com)
The global natural resources consultancy firm predicts two to three years of overbuild from the rapid increase in capacity as pipelines come online before the normal long-haul capacity supply and demand conditions re-emerge. U.S. Gulf Coast-bound capacity will tighten as production growth expands well in the 2030s.