Industrial Info Tracks Bounty of Projects in Booming Permian Region

Researched by Industrial Info Resources (Sugar Land, Texas)--The Permian Basin region is expected to account for more than half the growth of U.S. crude oil production through 2019, according to the U.S. Energy Information Administration (EIA).

As such, Industrial Info is tracking nearly $16.5 billion in kickoffs for projects in the booming West Texas region that have a medium or high likelihood of moving forward as planned during the next 12 months. This includes big investments in crude oil pipelines and crude storage facilities in the 47 West Texas counties that are included in the region.

U.S. crude oil production will average a record 10.7 million barrels per day (BBL/d) in 2018 and 11.7 million BBL/d in 2019, according to the EIA's August Short-Term Energy Outlook. The forecast for both 2018 and 2019 would surpass the previous record of 9.6 million BBL/d set in 1970.

The Permian region is expected to account for more than half of the growth in crude oil production through 2019, according to the EIA. Production in the region is forecasted to average 3.3 million BBL/d in 2018 and 3.9 million BBL/d in 2019. However, dampened wellhead prices in the region due to pipeline capacity constraints are contributing to slower crude oil production growth in the region in 2019 when compared with 2018.

Crude oil pipeline projects that are expected to kick off construction in the next 12 months account for nearly $3.5 billion in the West Texas region. This includes the 700-mile Gray Oak pipeline, a joint venture project of Phillips 66 Partners (NYSE:PSXP) and Andeavor (NYSE:ANDV) (San Antonio, Texas). The 800,000-BBL/d pipeline (expandable to 1 million BBL/d) will move crude oil from West Texas to destinations in the Corpus Christi and Sweeny/Freeport markets in Texas, according to Phillips 66. Origination stations will be constructed in Reeves, Loving, Winkler and Crane counties in West Texas, as well as from locations in the Eagle Ford production area in South Texas. The pipeline is expected to be placed in service by the end of 2019. For more information, see Industrial Info's project report and July 30, 2018, article - Phillips 66 Posts High Quarterly Earnings With Many Projects on the Way.

Industrial Info is tracking more than $1.1 billion in crude oil storage projects that are expected to kick off during the next 12 months in the region. Among them is Crestwood Equity Partners LP's (NYSE:CEQP) (Houston, Texas) planned crude oil and condensate terminal near Orla, Texas, which includes two 40,000-barrel crude oil tanks and a 75,000-barrel condensate tank, along with truck-unloading racks. The terminal will support the planned 200,000-BBL/d Delta Access Pipeline, which will run 180 miles from the Permian Basin, providing access to Cushing, Oklahoma, and Houston and Corpus Christi, Texas. For more information on the terminal, see Industrial Info's project report. For more on Crestwood Energy Partners, see August 1, 2018, article - Midstream Operator Crestwood Equity Reports Net Loss for Quarter, Industrial Info Tracks $1.66 Billion in Projects.

In Wink, Texas, Rangeland Energy (Sugar Land, Texas) is performing a market analysis for a planned crude oil and truck unloading terminal, with an initial 480,000 barrels of crude storage. For more information, see Industrial Info's project report.

The Permian region also includes three counties in eastern New Mexico, where Industrial Info is tracking nearly $671 million in medium- and high-probability projects that are expected to kick off construction in the next 12 months. The vast bulk of that amount is tied to $473 million in gas processing project activity.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.