Permian Report Supports View Price Crash Has Passed
Pipelines figured prominently among this past week’s top downstream-related articles on Rigzone. Find out why in the recap below that highlights some of the most popular recent articles in terms of page views.
U.S. oil producers have had to shut-in output to help mitigate the growing scarcity of available oil storage and support a price recovery. An executive with major pipeline firm Energy Transfer LP reported this week that some Permian Basin oil producers appear to be reopening the spigot, states this Bloomberg article. The Energy Transfer exec added the actions by some producers suggests their belief that oil price crash has already bottomed out.
Chevron and Total are investing $5.7 billion to develop the deepwater Anchor field in the Gulf of Mexico south of Louisiana, and they have selected Williams to get gas produced from the field to shore and to market. As this staff-written article notes, Williams will ship the gas from Anchor via the Discovery pipeline system that it owns with DCP Midstream. It will process, fractionate and market the rich gas at a pair of facilities in southeastern Louisiana.
Earlier this week, IHS Markit outlined how the oil market could recover from the unprecedented demand destruction, supply cuts and inventory builds of recent weeks. By the second half of 2021, most of the pre-COVID-19 oil demand could be back unless a second pandemic wave occurs, the firm contends. According to an IHS Markit prognosticator, a three-phase oil market recovery could manifest itself through the current “crash correction,” a “just-in-time market” and – finally – the return to nearly pre-pandemic demand. To be sure, the market-watcher cautioned that the recovery period will be “choppy and plagued with stop-and-go rallies and selling cycles.”
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