When it comes to pipeline take-away constraints out of the Permian, the spotlight has largely been on natural gas and NGLs. However, Permian crude oil takeaway pipeline situation is not far behind and remains dynamic given the possibility of multiple large offshore crude oil terminals in the U.S. Gulf Coast still in play. Understanding and navigating the complexities of the evolving crude oil takeaway pipeline situation from the Permian Basin is essential for stakeholders across the energy sector to effectively manage risks and capitalize on opportunities in this dynamic environment. This article provides benchmarking of crude oil egress from the Permian and provides perspectives on impact on regional flows due to future large offshore export terminals.

Permian crude oil production lags midstream

By late 2018, pipeline infrastructure to move crude oil out of the Permian basin faced constraints with high-utilization rates reported on several pipelines. This impacted the in-basin crude oil prices and the market responded by adding new pipeline capacity.  Between 2019 to 2021, there were five new pipelines commissioned enhancing crude oil transportation capacity out of the basin. Of the five, three pipelines were added targeting the Corpus Christi market including Cactus II, EPIC, and Gray Oak which added ~2.2 MBPD of incremental capacity. Two pipelines added capacity to the Houston refining and export hub which were Midland to Echo III, and Wink-to-Webster with total capacity of ~1.9 MBPD.  These capacity additions provided needed relief and marketing options for Permian oil producers.