Thursday, November 15, 2012
Bentek’s PADD 3 (Southeast/Gulf) Crude Oil Production Monitor reports crude oil production in the Permian Basin currently exceeds takeaway capacity and local demand by 40 Mb/d, compared to 14 Mb/d in early October. As a result, since Oct. 1 the WTI Midland price discount to WTI Cushing has increased significantly and is now more than $6/bbl. Bentek reports this price spread will remain wide until early 2013, when constraints are alleviated by the Sunoco’s West Texas Gulf and Magellan’s Crane-to-Houston pipeline expansions. Over the next few years, new pipeline infrastructure will be critical to sustaining growth rates and minimizing regional price volatility.
Bentek's Crude Oil Production Monitors provide a new level of visibility into crude oil production in the U.S. and Canada. Based on Bentek’s fundamental analysis, these regionally-based monthly reports offer extensive supply-side coverage of the North American crude oil market, including regional production projections, drilling activity, rig counts, transportation and refining constraints and pricing analysis.
Highlights from Bentek’s PADD 3 (Southeast/Gulf) Crude Oil Production Monitor: