According to a report form Bloomberg, US$1 billion a day is the price tag for a Permian Basin pipeline crunch that’s increasingly affecting investors as much as it is West Texas oil drillers.
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"Bottlenecks cost US investors US$1 billion a day"
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Bloomberg reports that eight of the top explorers focused on the booming US shale region have lost US$15.6 billion in combined market value in about two weeks, as shipping constraints devour the profit they can fetch for a barrel of crude.
Parsley Energy Inc. shares have wilted 16% in that time; Diamondback Energy Inc. is down 18%.
Even as production soars, dwindling pipeline space and a rail and trucking shortage have raised shipping costs, boosting the discount Permian producers take to offload their oil. The bottleneck benefits refiners who can buy cheaper crude and pipeline owners with extra space, but it’s dragging down explorers.
Read the article online at: https://www.energyglobal.com/pipelines/business-news/07062018/bottlenecks-cost-us-investors-us1-billion-a-day/