Permian Pipeline Constraint Stalls Growth
The world’s most important oil growth region – the Permian Basin – will experience a setback with 345 completions likely to be deferred by the end of 2019 due to pipeline takeaway capacity constraints, according to a new US Drilling & Completion report from Westwood Global Energy Group (Westwood).The report predicts that all the supply chain logistics and capital, which were allocated towards 345 expected completions, will now have to find either new buyers or be stored in a warehouse for a considerable period resulting in additional…
Oil Steadies Ahead of OPEC Meeting
U.S. output may rise more than rig count suggests - Westwood. Oil prices were only slightly firmer on Tuesday as traders looked ahead to a meeting next week at which major crude exporters are expected to extend production cuts but the prospect of rising U.S. output capped gains. Brent crude oil was up 12 cents at $62.34 a barrel at 1145 GMT. U.S. light crude was at $56.56, up 14 cents. Analysts said Brent was expected to fluctuate in a narrow range, between $61 and $63, as the market awaited the outcome of the Organization of the Petroleum Exporting Countries' meeting on Nov. 30.
