PSXP - Let It Flow: Permian Crude Heads For The Coast
By Michael Laitkep
Last year, the rampant growth in crude production in the Permian caused supply to outpace available pipeline takeaway capacity, creating a growth opportunity for the midstream space. As new pipeline capacity comes on-line in the Permian this year and in 2020+, the logical question is whether the bottleneck will simply move ~500 miles east to the Texas Gulf Coast. Today, we compare Permian pipeline takeaway capacity with Texas Gulf Coast export projects to determine if crude exports will be constrained over the next few years.