Permian crude oil markets are getting interesting again, with triple-digit prices making daily headlines and boosting producers’ cash flows. But there have been few parties in the Permian oil midstream space. There, excess long-haul capacity has been the story for some time, a situation that became more pronounced when Wink-to-Webster (W2W) — the last of the new greenfield pipelines to the Texas Gulf Coast — started up earlier this year. There’s so much capacity in place that price spreads have remained tight and competition for barrels has been fierce. That said, there’s a positive story flying under the radar in the Permian oil markets. One of the new pipelines that started up out of the Permian in 2019 is now full. That may surprise some folks, kind of like when the Texas A&M Aggies pulled in the #1 football recruiting class in the country earlier this year. While Alabama’s coach is apparently still trying to swallow that news, you’re not likely to find yourself doubting the ability of a newbuild to get full in today’s competitive environment. At least you won’t after we tell you the story of the EPIC Crude Pipeline, which we do in today’s RBN blog.
Runnin’ Down A Dream – EPIC Crude Pipeline Nears Full Utilization
