Words of caution coming from Kinder Morgan


The oil and gas industry is being warned about ramping up too quickly in the Permian Basin as oil prices hang around the $55 a barrel level.

At a post-earnings call on Wednesday, Kinder Morgan’s president Kim Dang admitted there are concerns about the industry trying to claw too quickly back to pre-COVID-19 pandemic production.

Just last week, US energy firms added oil and natural gas rigs for an 8th consecutive week.


“By our calculations, you’re getting close to a rig level in the Permian that could get you back to flat volumes to where we were pre-pandemic,” Kim Dang, president at Kinder Morgan said.

“And so it’s not clear how much they would ramp up capex in response to increasing prices,” he added.

Click here for more from Reuters.

%d bloggers like this: