Oil takeaway capacity from the Permian Basin, the largest U.S. shale field, is expected to tighten next month due to scheduled pipeline maintenance, which is already driving up the premium for delivered WTI into East Houston.
The 642-mile Wink-to-Webster pipeline, operated by Exxon Mobil and which ships more than 1 MMbbl/d of crude and condensate from the Permian Basin to the Gulf Coast, is due downtime next month for a 10-day scheduled maintenance period.
"Of course that means crude oil supplies are supposed to back up in the Permian Basin while crude oil inventories are drawn along the Gulf Coast," said Andrew Lipow, president of Lipow Oil Associates in Houston.
The spread between West Texas Intermediate (WTI) crude and the same grade delivered to Magellan's East Houston terminal (MEH) hit its widest point on April 29 at a $1.25/bbl premium, the widest since early June 2021, according to LSEG data.
Recommended Reading
ONEOK Offers $7B in Notes to Fund EnLink, Medallion Midstream Deals
2024-09-11 - ONEOK intends to use the proceeds to fund its previously announced acquisition of Global Infrastructure Partners’ interest in midstream companies EnLink and Medallion.
Five Point Closes Infrastructure Fund with $1.4B in Commitments
2024-09-09 - Five Point Energy, which created newly public Permian Basin company LandBridge, said its Five Point Energy Fund IV was oversubscribed from a target of $1.25 billion.
TC Energy Appoints Two Independent Directors to Board
2024-11-07 - TC Energy Corp. appointed Independent Directors Scott Bonham and Dawn Madahbee Leach to its board, the company announced Nov. 7 in a press release.
Record NGL Volumes Earn Targa $1.07B in Profits in 3Q
2024-11-06 - Targa Resources reported record NGL transportation and fractionation volumes in the Permian Basin, where associated natural gas production continues to rise.
Midstream M&A Adjusts After E&Ps’ Rampant Permian Consolidation
2024-10-18 - Scott Brown, CEO of the Midland Basin’s Canes Midstream, said he believes the Permian Basin still has plenty of runway for growth and development.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.