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Key Points
  • A shortage of pipeline space created a bottleneck for oil coming from the hottest US shale basin, but that is about to end with a big expansion of capacity that will help send more US crude into the Gulf Coast and out onto the world market.
  • The oil and gas industry is building out pipelines as drillers expect to up their output from the Permian to where it could double over the next four years, to 8 million barrels a day. That’s more than all of the oil the U.S. produced just six years ago.
Oil operations in the Permian Basin near Midland, Texas - Nick Oxford | Reuters

Oil operations in the Permian Basin near Midland, Texas - Nick Oxford | Reuters

As if stuck in a partially clogged drain, oil from the hottest U.S. shale play has been caught in a bottleneck due to a lack of pipeline capacity.

But the transportation tie-up at the Permian Basin is about to ease up, and a new network of pipelines will help U.S. producers unleash more crude into the Gulf Coast and then onto the world market. Read more…