Published reports suggest that the lack of crude oil and natural gas pipelines in the Permian Basin has become so great that oil companies are being driven out of the region.
The Energy Department this week suggested some energy exploration companies are taking their rigs to other plays where they won’t face the headache of wondering how to get their oil to the Gulf Coast refineries.
The Energy Information Administration released a weekly oil analysis this week highlighting the case for more spending on pipelines in the Permian. The EIA said it found a trend among the 45 publicly-traded companies and their investment strategies.
“As a result of these constraints, some producers with a geographically diverse portfolio of upstream assets announced plans in their second-quarter earnings releases to redirect capital expenditures from the Permian Basin to other regions,” stated the EIA’s Week in Petroleum report.
Read more at the Washington Examiner.
