Houston, we've got a problem
Surging production has begun to outstrip the pipeline takeaway capacity out of the Permian Basin, dampening production growth prospect in the future until new pipelines come onstream. Different companies have varying exposure to this transportation tightness, depending on their 2018 drilling program, well economics and hedging profiles. In this article, let's look at what all of this means to the investors.
Permian production
The oil production from the Permian Basin has been in a rapid rise since 2016, after a short-lived hiatus during the previous year (Fig. 1). As of