Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Pioneer Natural boss says Permian pipelines to reach limit in 3-4 months

Published 06/20/2018, 10:18 AM
Updated 06/20/2018, 10:18 AM
© Reuters.  Pioneer Natural boss says Permian pipelines to reach limit in 3-4 months

© Reuters. Pioneer Natural boss says Permian pipelines to reach limit in 3-4 months

  • The Permian Basin will have to shut wells within four months because of a lack of pipelines to get the oil to customers, Pioneer Natural Resources (PXD +0.6%) Chairman Scott Sheffield tells Bloomberg in an interview at the OPEC meeting in Vienna.
  • "Some companies will have to shut in production, some companies will move rigs away, and some companies will be able to continue growing because they have firm transportation," Sheffield says.
  • The Permian is growing at 800K bbl/day annually and production currently stands at 3.3M bbl/day; with total pipeline capacity at 3.6 M barrels, the region would reach capacity in the next 3-4 months, Sheffield says, adding that the bottleneck likely will not ease for at least a year.
  • The worsening bottleneck provides an unexpected boon to OPEC and other oil producers outside the U.S., which have seen surging production from U.S. shale producers grab market share.
  • Among many relevant tickers: EOG, LPI, FANG, SN, COG, CRZO, CXO, RSPP, DVN, NFX, OXY, CVX, XOM, NBL, PAA, MMP, TRGP, KMI, APC, APA, WPX, CDEV, REN, EGN, JAG, AXAS, HK, MCF, XEC, PE, SM, MTDR, QEP, AR
  • Now read: Kinder Morgan - Selling The Trans Mountain Pipeline Isn't A Huge Deal


Original article

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.