Crude takeaway to exceed Permian production by 1 million b/d in 2020 Narrowing discount on WTI locked in at Midland Permian hub Gas takeaway constrained prior to October startup of GC Express pipeline Waha forwards priced in upper 90 cents/MMBtu for April, May New York — Producers in the Permian Basin are getting mixed signals from midstream markets in 2019, as increasingly unconstrained crude oil production continues to lift associated gas output to record highs, testing the limits of available takeaway capacity for the fuel.
The startup of Plains All American Pipeline’s 350,000 b/d Sunrise expansion at the end of 2018 marked the start of a period that should bring higher prices and more takeaway capacity for Permian crude. As oil production bottlenecks are eliminated, though, associated gas output is growing. According to S&P Global Platts […]