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Is the Permian Barreling Toward a Breaking Point?

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  • When Will the Pipeline Relief Come?

  • Will There Ever Be Enough Truckers?

  • How Much Can You Expect From Rail?


The next year could spell trouble for operators producing oil in West Texas and southeastern New Mexico.

The Permian Basin currently has more crude than it can handle, and production there continues to grow at a steady rate month-over-month after surpassing 3 million B/D earlier this year, according to data from the US Energy Information Administration (EIA).

Pipeline takeaway capacity isn’t sufficient and won’t be until the second half of 2019. There aren’t nearly enough trucks or truck drivers to make up the difference, and any meaningful expansion of crude-by-rail transport is restricted by infrastructural- and business-related constraints.

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Is the Permian Barreling Toward a Breaking Point?

Matt Zborowski, Technology Writer

20 June 2018

Volume: 70 | Issue: 8

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