Pioneer CEO Said U.S. Oil Production would be up to 15 mm bbls/day NOW if we had the pipelines. Permian pipelines STARTING Q3

(edited)

Three Permian oil pipelines coming soon.  First expected online in September (partial capacity and ramp over 4 months).  The other two to follow.  Approx 2.5 to 3 mm bbls/d capacity.

As others have posted the bottleneck will then be export terminals. 

Eight applications for oil export terminals filed.  Offshore terminals will dominate.  New terminals must accommodate VLCC Tankers, (2 mm bbls)

One existing and three new will move on. (1) LOOP, Louisiana will switch to 100% export (2) Carlyle, Corpus Christi (3) Trafigura, Corpus Christi (4) Enterprise Products, Houston.

All new have applied for Trump new "Fast Track" Status. Estimated timeframe for new terminals Q1 2021.   In meantime might be able to export 5 mm bbls/day if one pushes it. 

All indications frac fleets are ramping for strong second half to attack DUC backlog in anticipation of new pipes.

Saudi Arabia should just make the production cuts permanent for the next 15 years . . .  and increase from 1.2 mm to 2.0 mm

Edited by Falcon
  • Like 1
  • Upvote 1

Share this post


Link to post
Share on other sites

West Texas' booming Permian Basin is churning out more oil than believed and pushing U.S. crude output even higher than the federal government estimates, according to a new report Thursday.

U.S. oil production likely hit a record of 12.5 million barrels per day in May and should even grow to 13.4 million barrels daily by the end of this year, the Norwegian research firm Rystad Energy projects. Next year should see oil supplies hit 14.3 million barrels a day.

Rystad sees Permian output already above 4.5 million barrels daily in May with Texas' total crude volumes exceeding 5 million barrels per day in June.

"U.S. oil production is already higher than many in the market believe," says Bjørnar Tonhaugen, Rystad's head of oil market research.

"Strong growth persists in the Permian Basin on both the New Mexico and the Texas sides," he said. "Updated production estimates suggest that the Permian Basin surpassed 4.5 million barrels per day in May."

Considering the ongoing recovery in hydraulic fracturing, called fracking, activity, the ship isn't turning around anytime soon even as oil prices have turned bearish at the end of May and into June, Tonhaugen added.

The U.S. Energy Department has projected that U.S. oil output is currently at a still-record 12.4 million barrels a day, but that the May average was less than 12.3 million barrels daily.

The government estimates the Permian's current volumes at less than 4.2 million barrels of crude oil a day, well less than Rystad's analysis.

Rystad believes the Permian will exceed 5 million barrels daily at some point next year.

  • Like 1
  • Upvote 1

Share this post


Link to post
Share on other sites

Pioneer and CHevron have cut back and have actually shit in production to stop flaring of gas till the pipelines are in place.

  • Like 1

Share this post


Link to post
Share on other sites

new pipeline projects in the permian

image.png.7902ea1626eebadea2f723fa6817ce98.png

Wink to Webster Texas Pipeline

  • Companies: Plains All American Pipeline L.P. and Exxon Mobil, Lotus Midstream LLC

  • Capacity: 1 million b/d capacity

  • Projected In-Service: In-Service: Q1 – Q2 2021

  • More Info:https://winktowebsterpipeline.com/

 

Gray Oak

 

Cactus ii

 

Jupiter Crude Pipeline

 

Epic Crude Pipeline

 

 

image.png.15df7a76be38a959e3636f6b090a48ec.png

Permian Global Access Pipeline

  • Companies: Tellurian

  • Capacity: 2.0 bcf/d

  • Projected In-Service: 2023

  • More Info: http://www.pgap.com/

 

Gulf Coast Express

 

Permian Highway Pipeline 

 

Pecos Trail

 

Permian-Katy Pipeline 

  • Companies: Sempra LNG & Midstream, Loews/Boardwalk Pipeline Partners

  • Capacity: 2.0 bcf/d

  • Projected In-Service: Q3 2020

  • More Info: http://www.p2kpipeline.com

 

Whistler Pipeline

 

 

image.png.315785c56db18f60fff4a748e12b2fe8.png

 

Grand Prix Pipeline

 

Epic ngl Pipeline

  • Great Response! 1

Share this post


Link to post
Share on other sites

Having shed its assets outside the Permian Basin, pure-play Pioneer Natural Resources Co. is on a cost-cutting, revenue-generating, free cash flow-making, growth rate-slowing, shareholder capital-returning mission.

And, “We have been laser-focused on lowering our breakeven costs,” Pioneer CFO Rich Dealy said June 19 during the JP Morgan Energy Conference.

The attention on monetization comes as U.S. shale players continue to be pummeled by investors fed up with oil companies’ inability, for the most part, to generate cash flow. Although the industry has successfully used technology and improved techniques to get more from wells while bringing down costs, it still faces challenges of steep well declines, geopolitics and the cyclical nature of the business plus debt.

 

  • Like 1

Share this post


Link to post
Share on other sites

Welp, this is going to kill oil prices globally for quite a number of years.

On the bright side, after the U.S. Shale Oil industry floods the global oil market with excess WTI, thus crashing the price of oil, it will then undercut the whole "renewable energy" push because oil will be too dang cheap for renewables to compete against. 

Perhaps that's where the Carbon Tax idea comes in, for Eestern govetnments to make oil too expensive via enormous Carbon Taxes, even when the actual price of oil will be dirt cheap.

Carbon Tax will be the new Sin Tax, to "prevent climate catastrophe" ?

  • Haha 1
  • Upvote 1

Share this post


Link to post
Share on other sites

14 hours ago, ceo_energemsier said:

Pioneer and CHevron have cut back and have actually shit in production to stop flaring of gas till the pipelines are in place.

Freudian slip?

  • Haha 1

Share this post


Link to post
Share on other sites

20 hours ago, ceo_energemsier said:

new pipeline projects in the permian

image.png.7902ea1626eebadea2f723fa6817ce98.png

Wink to Webster Texas Pipeline

  • Companies: Plains All American Pipeline L.P. and Exxon Mobil, Lotus Midstream LLC

  • Capacity: 1 million b/d capacity

  • Projected In-Service: In-Service: Q1 – Q2 2021

  • More Info:https://winktowebsterpipeline.com/

 

Gray Oak

 

Cactus ii

 

Jupiter Crude Pipeline

 

Epic Crude Pipeline

 

 

image.png.15df7a76be38a959e3636f6b090a48ec.png

Permian Global Access Pipeline

  • Companies: Tellurian

  • Capacity: 2.0 bcf/d

  • Projected In-Service: 2023

  • More Info: http://www.pgap.com/

 

Gulf Coast Express

 

Permian Highway Pipeline 

 

Pecos Trail

 

Permian-Katy Pipeline 

  • Companies: Sempra LNG & Midstream, Loews/Boardwalk Pipeline Partners

  • Capacity: 2.0 bcf/d

  • Projected In-Service: Q3 2020

  • More Info: http://www.p2kpipeline.com

 

Whistler Pipeline

 

 

image.png.315785c56db18f60fff4a748e12b2fe8.png

 

Grand Prix Pipeline

 

Epic ngl Pipeline

We sold ROWs to Targa last year in East Texas and they put that pipe in the ground within three months.  We gave a ROW to Epic Y grade on the Orla section a year and a half ago and they put the pipe in right away.  We are closing one with BANGL across the Orla section and OneOK is buying one next to the Targa line in East Texas.  In addition to those we gave ROWs to Medallion, Enterprise, and BHP out there in Reeves two years ago.  Doug and the rest who keep on yapping about flaring will have nothing to complain about by the end of this year.

  • Upvote 2

Share this post


Link to post
Share on other sites

17 hours ago, ronwagn said:

Freudian slip?

Accidentally on purpose schitt!!! ;):D

  • Haha 1

Share this post


Link to post
Share on other sites