A year ago, Permian Basin crude and gas was bottlenecked as companies struggled to get their production to market. Beginning in recent months, that bottleneck has started to dissipate as pipelines for oil and gas came online.
In 2020 and 2021, more pipelines will come online. This will happen just as Permian oil production begins to level off and hold for several years. In addition to getting their oil to market at better prices, several producers will also be able to get paid for their considerable associated natural gas production.
There is a scenario developing