Mathew DiLalllo, The Motley Fool, writes that help is on the way, here…
”Plains All American is building oil pipelines in the Permian as fast as it can. The company currently has two large projects underway, Sunrise, which it initially expected to finish in January of 2019, and Cactus II, which it hoped would start partial service by the end of 2019.
However, given the crucial need for more pipeline space, Plains is “trying to accelerate both of these projects as much as reasonably practical,” according to Chief Operating Officer Willie Chiang. To do so, Plains is “incurring additional costs to expedite material deliveries and vendor services and even installing temporary generators for our pumps until permanent utility power is available.” Those efforts are paying off, as the company now expects to begin commercial operations on Sunrise on the first of November.
The pipeline will move oil from the Permian up to a hub in Texas, where it can catch a ride on other systems to America’s main oil storage hub in Cushing, Oklahoma. Sunrise should be able to transport 360,000 BPD by the first quarter of next year, with full capacity slated to be as much as 500,000 BPD. That near-term in-service date has helped ease the pressure on oil prices in the Permian, causing the discount with WTI to narrow to $11 per barrel.”
Leave a Reply