Permian Oil Pipelines Undersubscribed Due to Market Uncertainty
The Permian Basin, which accounts for more than 40% of US crude oil production, was once riding high on the oil boom and is now struggling for a lifeline as COVID-19 slows demand and cuts prices. The EIA reported that the Permian Basin had 4.2 MMbpd of crude output in September, down 70 Mbpd from March. According to historical EIA drilling reports, current year-over-year production in the region is around half the level that it was in 2019 and production growth is predicted to further decline into 2021. East Daley Capital Advisors reported that the region currently has around 3 MMbpd of excess pipeline takeaway capacity at current production rates, which has proven to be a challenge for op
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