A lack of pipeline capacity is hampering Permian Basin crude oil and natural gas production. Pipelines that were adequate a few years ago are now overwhelmed due to the tremendous growth in production. New pipeline projects are being considered to alleviate the bottlenecks, which are causing some of the region’s oil and gas to trade at steep discounts compared to benchmark prices. Producers selling oil in Midland, Texas, are receiving about $16 a barrel less than what sellers are getting in Oklahoma for crude oil, and the natural gas price differential between Waha Hub in Western Texas and Henry Hub in Louisiana is about $1 per million Btu . insert picture Oil in the Permian Basin Oil drillers in the Permian Basin produced 3.3 million barrels of oil per day in June 2018—0.9 million barrels per day higher than in June 2017. That makes the oil field […]