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Information About Energy Companies, Their Assets, Market Deals, Industry Documents and More...

Like a Black Friday Sale: U.S. Winter Power Prices Fall as Natural Gas Inventories Hit Eight-Year High

12/03/2024

What’s driving lower power prices this winter? The U.S. is entering the ...

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$3.5 Billion Deal: EQT and Blackstone Partner on Major Natural Gas Infrastructure and Why This Matters

11/27/2024

What’s next for U.S. energy pipelines? EQT Corp. and Blackstone Credit j...

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What’s Happening: The Unexpected Growth in U.S. Oil Inventories and What It Means for the Industry

11/25/2024

Will rising imports and weak demand keep crude prices under pressure, o...

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Permian: Oil Pipeline Takeaway. Too Much or Just Fit?

10/17/2017

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Midstream key regional players continue to plot new pipelines to take all the petroleum from West Texas to refineries, export hubs and petrochemical plants.

However, even with production from the Permian Basin being up 24% since the year began, the capacities being built may not find their customers.

Almost a two-fold increase in takeaway will mean lower margins. Production will not keep up with such growth soon enough.

No operator abandons existing projects. Yet, a hunt for partners has begun.
Among the players involved are Kinder Morgan Inc. (NYSE: KMI), DCP Midstream LP (NYSE: DPM), and also Targa Resources Corp. (NYSE: TRGP) not to mention others.

Some analysts say output can accommodate many of the new transportation lines. Permian production should rise through 2026 but it may peak sooner.

The competition for deals to fill the pipelines is so fierce that margins for operating the lines are likely to be thin without consolidation.