Dan Warnick

Texas Is About to Create OPEC's Worst Nightmare

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If OPEC is going to make a price move, they'd better make it fast.  This article says that 3 new pipelines will open in Texas in the 2nd or 3rd quarter of 2019 instead of late 2020 as previously predicted.  They're even naming one of the pipelines after our very own @Epic !  (Check on royalties, Epic. LOL)

Texas Is About to Create OPEC's Worst Nightmare


August saw the largest annual increase in U.S. oil production in 98 years, according to government data. The American energy industry added, in crude and other oil liquids, nearly 3 million barrels, roughly the equivalent of what Kuwait pumps, than it did in the same month last year. Total output of 15.9 million barrels a day was more than Russia or Saudi Arabia.

Rail Cars

The growth was possible because oil traders decided not to be stymied by the dearth of pipelines. They used rail cars and even trucks to ship barrels out of the region. But pipeline companies unexpectedly increased capacity, in part because they added chemicals known as “drag reduction agents’’ to increase flow. A new pipeline came online earlier than anticipated, and with three more expected between August and December next year, production is poised to skyrocket.

“The narrative has shifted significantly,’’ said John Coleman, a Houston-based oil consultant at Wood Mackenzie Ltd. “Six months ago, the market expected the bottleneck to ease in the first quarter of 2020. Now, it expects it in the second to third quarter of 2019.’’
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