The nation’s largest independent oil and gas producer and its midstream subsidiary have teamed up to sponsor one of America’s most iconic events that never fails to go straight to the dogs.Read More
Hardly a week goes by that we don’t hear about shuffles and shovels making news in the midstream industry. Between all the mergers and acquisitions, new construction and expansions, midstreamers are working at a frenetic pace to meet unprecedented oil and gas production with the infrastructure to move supplies to market. RMR today is looking at just a few of the projects announced this month that are now servicing—or soon will service—the congested Permian and Eagle Ford.
To put the volumes produced each month in perspective, the Permian topped 4 MMBPD of crude oil in August; the Eagle Ford, nearly 1.4 MMBPD. Production there has quadrupled since 2011. But midstreamers have hit the ground running. In October, Enterprise announced construction of its fourth ECHO Permian pipeline from Midland to Houston and expansions of two of its pipelines to add 450,000 BPD of takeaway capacity. Construction of the company’s EPIC crude oil line servicing the Permian and Eagle Ford has begun with the EPIC expected to come online in January to transport 900,000 BPD. EPIC and Plains All American Cactus II pipeline added more than 1 million BPD of capacity. And the great news is, there’s more to come not only in the Permian and Eagle Ford but in the Andarko’s SCOOP and STACK, DJ, Bakken and every major producing basin in the U.S.
No doubt we’re experiencing a slow-down in production as independent E&Ps focus more on reducing debt and improving shareholder returns than production volumes. But with new energy technologies, drilling techniques and more efficient fracking processes still on the horizon, the next wave to unlock our vast oil and natural gas resources could be bigger than we can imagine today.
What do you think?